China's biggest state-owned bank formally launched a joint stock company yesterday in preparation for selling its shares overseas following an initial public offering by the China Construction Bank (
The Beijing-based Industrial and Commercial Bank of China(中國工商銀行) announced its joint-stock company, with registered capital of 248 billion yuan (US$30.6 billion) earlier this week and inaugurated it yesterday -- with announcements in the state media.
The company, named ICBC Stock Co (中國工商銀行公司), was jointly launched by the Ministry of Finance and Central Huijin Investment Co (中央匯金公司) and inherits the business and concerned assets and liabilities of the former ICBC.
Like China Construction Bank, whose shares began trading on Thursday on the Hong Kong Stock Exchange, ICBC has sought outside investment and expertise as it revamps in preparation for the full opening of China's banking industry to foreign competition in 2006.
The bank said earlier that investors including Goldman Sachs Group Inc, American Express Co and Allianz AG of Germany planned to buy a combined 10 percent stake for more than US$3 billion, with the deal to be finalized after bank was restructured. ICBC announced earlier this year that it plans to sell shares to private investors in 2006. The government injected US$15 billion into the bank in April to help replenish its funds.
The second-largest state-owned bank, the Bank of China (中國銀行), also is expected to launch a stock offering by next March or April.
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