Huge cash injection on the cards for ABC
By Yu Lu (China Daily)Updated: 2006-12-27 09:22 China's top banking regulator said yesterday that it was very likely that the Agricultural Bank of China (ABC) the last of China's "big four" lenders yet to undergo a joint stock reform will get a major government cash injection next year.
Liu Mingkang, chairman of the China Banking Regulatory Commission , told a financial forum
that there will be "good news" next year in terms of the bank's restructuring,
but the specific reform plan still requires central government approval.
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According to earlier media reports, the bank submitted a revised reform plan to the State Council China's cabinet last month, which seeks the listing of the entire bank. Previous plans had called for the lender to be split up.
"After the restructuring, the bank should strengthen its market orientation in order to better serve the agricultural sector, rural areas and farmers," People's Bank of China Governor Zhou Xiaochuan said.
In a report to the National People's Congress Standing Committee, the central bank chief told legislators that the ABC's joint-stock reform will be accelerated.
Based on the completion of external auditing, as well as asset and capital verification of the ABC, the government will steadily implement financial restructuring including spinning off losses and a capital injection from the government, and follow up with moves to establish a joint stock company, Zhou said.
A final decision on the bank's reform plan is expected at the Central
Financial Work Conference, expected to take place before next February's Spring
Festival holiday.
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