Chinese liquid crystal display maker BOE Technology Group announced on Tuesday the purchase of shares worth nearly $20 million of Bank of Chongqing, in a bid to strengthen cooperation with Chongqing government and local financial institutions.

Chinese city commercial lender Bank Of Chongqing is on course for an initial public offering in Hong Kong. The bank plans to price its Hong Kong IPO at the mid-point of an indicative range, putting the deal at $552 million, Reuters said on Tuesday.

The Shenzhen listed company said in the announcement that existing shareholders Dah Sing Bank and Chongqing Yufu Assets Management will buy shares worth HK $330 million each from Bank of Chongqing.

Three cornerstone investors with a combined $96 million in shares are Chongqing Beiheng Investment & Development (400 million yuan), China Fortune Finance ($20 million) and National Bank of Canada ($10 million).

BOE Technology, now the world's fifth-largest LCD panel maker, said in the announcement that Bank of Chongqing will give full support to BOE's programs in the city in terms of loans and bill discount. Meanwhile, the valuation of China's banking industry is relatively low, so the purchase is expected to benefit BOE's investment income.