On July 6, 2012, ICBC and The Bank of East Asia ("BEA") concluded ICBC's acquisition of 80% interest in BEA (U.S.A.) in Beijing. ICBC is now the controlling shareholder of BEA (U.S.A.). This first acquisition of a controlling stake in a US commercial bank by a Chinese bank signifies a new step for China and US to engage further opening of financial business on an equal basis. Earlier, the US Federal Reserve (Fed) approved ICBC to acquire BEA (U.S.A.) on May 9, 2012 (US Eastern time).

The successful acquisition will enable ICBC to fill the gap - with this commercial bank license in the US, ICBC can further expand its business and operating network across the nation, said an executive with ICBC. Until now, ICBC has three subsidiaries in US - New York Branch, ICBC Financial Services LLC and US subsidiary. Through complementary advantages and strategy synergy, the three subsidiaries enable ICBC to offer an integrated platform for the delivery of more comprehensive, best-quality and professional financial services to US companies and retail customers and trade activities between the 2 nations, and inject new life into the local economy.

Before the acquisition, BEA (U.S.A.) was wholly-owned by BEA through the East Asia Holding Company, Inc. - which is 100% owned by BEA. Headquartered in New York, BEA (U.S.A.) is a Fed-registered bank. It holds a commercial bank license in the US and offers conventional services including retail banking, corporate banking and trade finance. As of today, BEA (U.S.A.) operates 13 branches (3 in New York, 5 in San Francisco, 5 in Los Angeles), which are the main investment areas of Chinese companies in the US.

In recent years, trade between China and US has entered a new era of diversified cooperation across different business segments, instead of simply buying and selling of goods and commodities. Especially the increasing scale of mutual investments between China and the US calls for more comprehensive cross-border financial services from Chinese banks. In order to enrich the provision of financial services and build a solid presence in the US, ICBC entered discussion with BEA to acquire 80% stakes in BEA (U.S.A.). Pursuant to the agreement, ICBC will acquire 80% interest in BEA (U.S.A.) from BEA for a total consideration of approximately USD 140 million. BEA retains a 20% interest in BEA (U.S.A.). The acquisition was approved by China Banking Regulatory Commission on March 8, 2011 and US Federal Reserve on May 9, 2012 (US Eastern time).

An ICBC executive said, during the past few years ICBC has escalated its global footprint to cope with the globalization of customers and markets. At the end of first quarter this year, ICBC has set up a global network of 244 overseas branches spreading 34 countries/territories. This global service platform, together with a presence in Africa through holding a 20% stake in the Standard Bank of South Africa, covers all the major international financial centers and China's trading regions with well-defined hierarchy, reasonable positioning, diversified channels and efficient operation. In recent years, the overseas subsidiaries of ICBC have a stellar performance in business development as well as profit return. In particular during the first half of this year, profitability growth in overseas branches is significantly higher than that in their domestic counterparts. This marks an initial success of ICBC's strategy of overseas expansion. In the next step, BEA (U.S.A.) will be renamed as ICBC USA and aims to be a premier banking institution serving the economy, trade and investment between China and the US. ICBC USA's mission is to provide a full spectrum of best-quality, professional financial services and boost the local economy and community while gearing up its localization efforts.