Japan’s SMBC goes after China market

Sumitomo Mitsui Banking Corp. SMBC is targeting a toehold in the Chinese market by upping its stake in Bank of East Asia BEA for about 100 billion $951 million.

SMBC, the core lending unit of Japanese megabank SMFG, said in a statement on Friday that it has agreed to raise its stake in Hong Kong-listed BEA to about 17.5% from 9.6%.

If approved by regulators, the deal would further SMFG's ambition to become an Asia-centric institution over the next decade. 

All three Japanese megabanks - SMFG, MUFG and Mizuho - are broadening their overseas loan books and...