Germany 'welcomes China investment' in financial sector, regulator says

　　Chinese investors are welcome in German financial institutions, Germany's market regulator said on Tuesday after Chinese conglomerate HNA Group raised its stake in Deutsche Bank.

　　An acquisition drive by HNA reflects a broader Chinese push into financial services as China encourages its corporate sector to expand overseas, although such moves have faced increased regulatory scrutiny in the U.S. and Europe.

　　"We believe it is fundamentally positive that capital is being invested in German banks. This of course includes foreign capital and of course Chinese capital," BaFin President Felix Hufeld said.

　　"There is no black list of countries that are not allowed to invest with us. In this regard, this is a welcome development," he said.

　　Last year, BaFin gave a green light to China's Fosun to take over the small private bank Hauck & Aufhauser.

　　HNA's investment in Deutsche Bank, which it revealed last week had risen to just below 10 percent, comes amid heightened uncertainty for the bank.

　　Germany's largest lender is making a strategic turnaround while facing an uncertain global economy and the impact of Britain's departure from the EU.

　　The disclosure in a U.S. regulatory filing showed that HNA had become Deutsche Bank's biggest direct shareholder, slightly ahead of funds controlled by Qatar's former Prime Minister Sheikh Hamad bin Jassim al-Thani, which last year increased their stake, including options, to under 10 percent.

　　Deutsche Bank sees the HNA and Qatari stakes as a vote of confidence that should encourage other investors.

　　Chinese investors are also said to have shown some interest in buying a stake in the HSH Nordbank. HNA and Chinese insurer Anbang have both made inquiries about it.