Social Security Fund to invest US$2.25b in state bank
(Xinhua)
Updated: 2006-06-19 14:31 China's Social Security Fund will invest more than
18 billion yuan (2.25 billion U.S. dollars) in the Industrial and Commercial
Bank of China, the country's biggest lender, according to an agreement the two
signed Monday.
Chairman Jiang Jianqing of the bank said the deal, pending approval from the
China Banking Regulatory Commission, is "another important result achieved by
the ICBC in inviting foreign strategic investors."
A foreign trio of Goldman Sachs, American Express and Allianz Group has
already paid a combined 3.78 billion U.S. dollars for a 8.89 percent stake in
the ICBC, the biggest-ever amount of foreign investment in China's banking
industry.
China hopes its "big four" state banks, including the ICBC, Bank of China,
China Construction Bank and Agricultural Bank of China, would strengthen
corporate governance and streamline operation with the help of foreign investors
and public listings.
Investors are also eager to buy Chinese bank shares so as to tap into the
robust Chinese economy, which grew about 10 percent in each of the past three
years.
The Shanghai Securities News reported last week the ICBC is expected to list
its shares in Hong Kong as early as September, followed by another domestic
listing.
A previewing view among Chinese brokerages is that the bank's domestic share
offering could be materialized later this year, if market conditions are
suitable.
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