CPPIB invests in Chinese bank

The Canada Pension Plan Investment Board (CPPIB) says it is investing about $678 million in the common equity of Postal Savings Bank of China (PSBC).

PSBC is one of the largest retail banks in China with more than 400 million retail customers and nearly 40,000 branches.

It is China’s largest bank by customers and distribution network and is the sixth largest bank by total assets in China.

Other strategic investors, including global banks and Chinese Internet companies, are investing alongside CPPIB.

“We welcome the opportunity to invest in Postal Savings Bank of China as it is a business that is well suited to CPPIB’s long-term investment horizon,” said CPPIB president and CEO Mark Wiseman.

“China is an important market for a long-term investor like CPPIB and we view this investment as a great opportunity to work alongside a highly respected financial institution to participate in the future growth and rising consumption patterns of the Chinese population.”

The CPPIB invests funds not needed by the Canada Pension Plan and had $272.9 billion invested as of Sept. 30, 2015.