Chinese conglomerate HNA Group has taken a 3.04 percent stake in Deutsche Bank AG through a European asset manager and is reportedly considering buying further shares in the German lender.
HNA Group is controlled by Chinese tycoon Chen Feng and owns Hainan Airlines, China’s fourth-largest carrier. Its interests span airlines and airports, aviation leasing, hotels and tourism.
HNA’s move is seen as a vote of confidence in Deutsche Bank.
"We have the fullest confidence in Deutsche Bank's management and will keep a close watch on its future steps and lend support as a shareholder where appropriate," a spokesman for HNA said.
Customers use automated teller machines (ATM) outside a Deutsche Bank AG bank branch in Munich, Germany, on February 6, 2017. /CFP Photo
HNA’s Deutsche Bank stake makes it the lender’s third-largest shareholder, behind members of Qatar’s royal family and giant US money manager BlackRock Inc., according to public filings.
The German lender’s shares hit multiyear lows in September 2016 while investors were concerned about legal-settlement costs relating to an investigation by US and UK financial authorities over alleged mirror trades used to launder 10 billion dollars out of Russia.
The bank’s shares have recovered by more than 50 percent since, in the wake of major legal settlements with US and UK authorities.
While Deutsche Bank has recovered from its autumn lows, CEO John Cryan has struggled to convince investors that confidence in the bank is warranted.
Deutsche Bank posted another loss in 2016 of 1.4 billion euros after a record 6.8 billion euros in 2015.
The bank, in the midst of a major restructuring and still facing a number of legal disputes, has said it may need until 2018 before it can reliably post profits again.
HNA Group, one of China’s biggest aviation, logistics and services conglomerates, has been expanding globally.
In October 2016, HNA agreed to buy a 25 percent stake in Hilton Worldwide Holdings Inc. from Blackstone Group LP for 6.5 billion dollars.
From February to May 2016, HNA unveiled a flurry of transaction to buy Ingram Micro - a US information technology group, Carlson Hotels - the US owner of the Radisson brand, and 13 percent shares of the airline Virgin Australia.
