China Construction Bank (CCB) said yesterday that it has entered into a strategic partnership agreement with Singapore's Temasek Holdings.

The bank and Asia Financial Holdings Pte Ltd (AFH), a wholly-owned subsidiary of Temasek, signed a definitive strategic investment agreement on July 1.

Under the agreement, Temasek will invest in CCB through AFH, which will place US$1 billion into CCB at a planned international initial public offering (IPO) for CCB. AFH will also purchase certain existing shares from China SAFE Investments Ltd, subject to regulatory approval.

In addition, AFH will assist CCB in improving corporate governance, including the right to nominate suitable candidates for election to the CCB board of directors. Other areas of collaboration and support are under discussion.

Temasek is an Asia investment company headquartered in Singapore. It manages a diversified global portfolio worth US$54 billion.

CCB said the strategic partnership with Temasek demonstrates that China's banking sector has taken another important step forward in its reform and improving corporate governance.

(China Daily July 5, 2005)