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CCB to launch world's biggest IPO
(Xinhua)
Updated: 2005-10-10 20:56
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.
CCB would be the first of China's big four state-owned banks --which includes
Bank of China, the Agricultural Bank of China and the Industrial and Commercial
Bank of China -- to list shares overseas.
In December 2003, the CCB and Bank of China received 22.5 billion dollars
each from the central government to tidy up their balance sheets.
Regulators hope that pushing state banks to go public will bring greater
transparency to the sector.
In 2004, CCB's pre-tax profits reached 50.22 billion yuan (6.19billion
dollars). Its capital adequacy ratio, being a measure of its available capital
in proportion to its outstanding loans, reached 11.29 percent -- significantly
above the international 8 percent requirement.
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