The net profits of the 16 mainland-listed banks totaled 812.8 billion yuan ($130.05 billion) during the first three quarters, accounting for 54.2 percent of the net profits of all the companies trading on the A-share market, according to figures from the exchanges in Shanghai and Shenzhen.
Unfortunately for mainland investors though, the oversized profits of these lenders have done little to bolster the prices of their shares, which are likely to remain low unless their major stakeholders push for more privatization of the financial industry.
The government can still keep a handful of banks under the control of the State, but it should give smaller joint-equity banks permission to tap the market first. But of course investors will also need to be reassured that the government stands behind the privatization of the financial sector before any capital holders will be persuaded to sink their money into lenders. The eventual privatization of the country's large bankers will not impact the banking system too drastically, since many of China's most profitable lenders operate under modern enterprise systems which promote effective management.
The author is Cai Hongbiao, a commentator. 
Landmark building should respect the public's feeling
Feedback
RSS
