Commonwealth Bank of Australia (CBA) has bought nearly a fifth of Hangzhou City Commercial Bank (HZCCB ) in China for A$100mn (US$77.6mn).

The 19.9% stake, which entitles CBA to board representation in the Chinese bank, will allow HZCCB to receive technical assistance from Australia’s second-biggest lender.

Hangzhou City Commercial Bank is among the five largest city commercial banks (CCBs) in China by assets. CBA also announced the purchase of Macquarie Securitisation Shanghai, a Shanghai-based mortgage broking business from another Australian bank (Macquarie).

CBA had its first foray into China when it bought an 11% stake in Jinan City Commercial Bank in late 2004. Under the terms of the agreement, CBA’s shareholding can be raised to 20%, the maximum allowable by Chinese regulation for a single foreign institution.