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Construction Bank raises 8 b dollars in IPO
(AFP)
Updated: 2005-10-21 08:00
China's banks have long struggled with severe debt problems, a major hangover from the country's central planning days when easy credit was granted without concern about repayment of the loans.
Regulators hope that pushing state-owned banks to go public will bring greater transparency to the sector, although US Securities and Exchange Commission chairman Chris Cox had recently said CCB's IPO would only prove a success "in the short run".
He said the reason why the bank did not list on the New York Stock Exchange was because "it couldn't meet the NYSE regulatory requirements."
Cox said China needs to develop sound corporate governance, reliable accounting, full disclosure, rights for minority shareholders, and "tough, effective, arm's-length, independent regulatory oversight of the markets".
Calling his remarks "inappropriate" and "irresponsible," CCB said its financial reports were complied according to international accounting standards and were audited by an independent external auditor.
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