Chinese Conglomerate Becomes Deutsche Bank's Biggest Shareholder

China's HNA Group has become the largest shareholder of Deutsche Bank, having increased its stake to 10%, reports CNN. The stake is worth 3.4 billion euros.

Previously, HNA's ownership was only three percent.

HNA has overtaken the Qatari royal family, which used to be the biggest shareholder.

Over the past few years, Deutsche Bank, Germany's largest financial conglomerate, has radically lost capitalization due to poor performance and a series of scandals.

In January, Deutsche Bank agreed to pay 7.2 billion dollars as a settlement with the US authorities over its sale and pooling of toxic mortgage backed securities. In general, since the 2007-2008 crisis, the bank has paid over 13.9 billion dollars in various fines and court disputes.

The increase of HNA's share in Deutsche Bank is another example of China's aggressive expansion abroad. In 2016, Chinese firms acquired assets worth 220 billion dollars.

HNA Group owns hedge fund Skybridge Capital, holds stakes in financial and insurance companies, in total worth 49 billion dollars. Since the beginning of the year, the group has made at least 10 acquisitions for 5 billion dollars.