Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second largest bank, has signed a strategic alliance with China CITIC Group to develop a leading financial group in Asia. BBVA will acquire 5% of China CITIC Bank (CNCB) for 鈧?01m with an option to increase to 9.9%. It will also purchase a 15% stake in CITIC International Financial Holdings (CIFH) for 鈧?88m and could increase this in the coming months. The alliance covers the development of retail and corporate banking in mainland China and Hong Kong.

CNCB and CIFH are CITIC Group’s two banking franchises. CNCB is the seventh biggest bank in mainland China. It has total assets of 鈧?2.2 billion, 13,485 employees and 416 branches. CIFH trades on the Hong Kong Stock Exchange (stock code: 0183). It is the 10th biggest bank in Hong Kong in terms of lending. It has total assets of 鈧?.3 billion, 1,711 employees and 38 branches.