Japan's SMBC plans handshakes and cash to spur China drug and device deals

Major Japanese lender Sumitomo Mitsui Banking has synced with official policy to get drug and device exports into fast-growing China, looking to state-owned firms there to pave the way as it provides handshakes and cash, Nikkei Asian Review reports.

SMBC beefed up capital in its China unit by 3 billion yuan ($483.2 million), to 10 billion yuan, bolstering its ability to finance Japanese medical industry firms to grow in China through deals, Nikkei said.

The focus is on state-owned Chinese drug and medical device manufacturers to pave a way for products by Japanese firms, Nikkei said, citing a bank announcement this week.

First on the block, Nikkei said, is China National Pharmaceutical Group, or Sinopharm, with SMBC planning to make introductions to Japanese firms that would spark deals.

For its part, Sinopharm is in line for partnerships with Sumitomo Mitsui Financial Group-Sumitomo Mitsui Finance and Leasing and the Japan Research Institute, Nikkei said.

- here's the story in Nikkei Asian Review