HLB ENTERS CENTRAL & WESTERN CHINA'S CONSUMER FINANCE MARKET

KUALA LUMPUR, March 1 (Bernama) -- Hong Leong Bank Bhd (HLB) and the Bank of
Chengdu Co. Ltd (BOCD), has obtained operation approval from China Banking
Regulatory Commission (CBRC) to begin consumer finance operations.

Sichuan Jincheng Consumer Finance Ltd Company, the joint venture company
(JV) of HLB and BOCD, will be the first batch of approved companies to start
consumer finance operations in Central and Western China.

The JV, with a registered capital of 320 million yuan (US$46.84 million),
will focus primarily on consumer financing business with HLB holding a 49 per
cent equity interest and BOCD the remaining 51 per cent.

In a statement, HLB said it had a 20 per cent equity interest in BOCD, a
commercial bank with 31 branches and 116 outlets in Chengdu, Sichuan.

It added the strategic alliance between HLB and BOCD to tap the promising
and growing financial services sector in China further cemented the bank's
strategic partnership in BOCD and affirmed its vision and belief in China's huge
potential.

HLB, with its wealth of experience in consumer finance, together with BOCD's
ready wealth of knowledge in Chengdu's local culture and consumer market, will
provide a strong foundation for the development of the joint venture.

For a start, the joint venture will develop business alliances with major
electrical appliance chain stores, reputable consumer electronic and computer
stores to offer financing for consumers to purchase consumer durables.

Simple and convenient loan procedures will be used to process applications
at the site of purchase, hence, ensuring fast turnaround time.

HLB's Chief Executive Yvonne Chia was quoted as saying, in the statement,
that the joint venture would expand its business scope, at a later stage, to
include loans for furniture purchase, travel, wedding and education.

"The Bank is serious about China and we are convinced of the huge upside
potential.

"We have the right partners in China and we want to grow with them. We are
very excited, and if we get our act right, in 3 to 5 years, we will have
transformed the bank's profile into one that is embedded in the region," said
Chia.
-- BERNAMA