BOC, ICBC may list in '05 or '06

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Last updated at: (Beijing Time) Monday, November 24, 2003

BOC, ICBC may list in '05 or '06

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Two of China's four major state-run commercial banks, Industrial & Commercial Bank of China (ICBC) and Bank of China (BOC), may launch initial public offerings both domestically and internationally in 2005 or 2006, the China Business Post reports.

Bank of China, which listed its Hong Kong operations as BOC Hong Kong (Holdings) Ltd. in July 2002, is likely to be the first of the four to offer shares, the paper says, citing people familiar with the situation.

The bank has a capital adequacy ratio of 8%, as required by the Basel Accord, a set of rules designed to raise the amount of capital banks hold so it better reflects the amount of risk they take.

Industrial & Commercial Bank intends to list in Hong Kong, New York and Singapore in 2006, China Construction Bank (CCB.YY) plans a listing in Hong Kong in 2007, while Agricultural Bank of China (AGBC.YY) is likely to list after 2008, the paper reports.

The paper didn't provide a timeframe for the banks' domestic listing plans.

An official from the China Banking Regulatory Commission said three of the banks - excluding Agricultural Bank - have submitted detailed proposals for the restructuring of their shareholding structure and their listing.

The banks propose raising their capital through bond issues and selling CNY1.4 trillion worth of nonperforming assets to the four state-run asset management companies, among other measures, says the report.

The three banks plan to establish a holding company controlled by the state and use that as a basis to set up listed, shareholding companies, said the CBRC official.

China Huarong Asset Management Corp., China Great Wall Asset Management Corp., China Great Wall Asset Management Corp. and China Cinda Asset Management Corp. are the four asset management companies set up to handle the bad loans of the four major state-owned commercial banks.

Another source said the banks also will consider looking for foreign strategic investors as part of the reform of their shareholding structure, the paper reports.

Foreign shareholdings in the banks are expected to be no less than 25%, says the paper.

(Source: agencies)

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