SMBC to become third biggest shareholder in Bank of East Asia

TOKYO - Japan's Sumitomo Mitsui Banking Corp (SMBC) said Wednesday that it will invest an additional 35 billion yen ($427.2 million) in the Bank of East Asia, becoming the third-largest shareholder of the major Hong Kong based commercial bank.

SMBC is cementing its ties with the Hong Kong bank that runs more than 100 offices in Chinese mainland to gain expertise in retail banking and services for smaller businesses in the country, according to Japanese media.

SMBC will own 9.50 percent of equity stake in the Bank of East Asia, up from a former 4.73 percent, after the Japanese side buys new shares to be issued by the Bank of East Asia later this month.