In the context of deepening reform of the shareholding system in China’s banking industry, Bank of Communications spearheaded the introduction of HSBC as an overseas strategic investor in August 2004. Since the establishment of strategic partnership between BOCOM and HSBC linked with equity investments, the cooperation has been deepening with smooth and close high-level communications of the two parties, resulting in remarkable achievements in credit cards, companies, international settlement, funds, custody and other business areas and technical exchanges to form a pattern of mutually beneficial cooperation. The managements of both parties were very pleased with the current results with the hope to continuously expand and deepen bilateral strategic cooperation on the existing basis, and both parties had confidence in the future cooperation prospects.
According to the agreement signed between the two banks, the lockup period of BOCOM shares held by HSBC would have expired by August 18. Regarding whether HSBC would reduce BOCOM shares after the expiration of the lockup period, HSBC has repeatedly stressed that HSBC’s investment in BOCOM was a long-term strategic investment, and HSBC would not reduce its stake in BOCOM.