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CCB to launch world's biggest IPO
(Xinhua)
Updated: 2005-10-10 20:56
In China, authorities have been encouraging Chinese banks to seek foreign partnerships in order to build up their capital and improve management before China fully opens its banking industry to foreign competition in late 2006.
Current limits cap equity stakes in a Chinese bank by any one foreign institution at 20 percent, with total foreign holdings limited to a maximum of 25 percent. Those limits are apparently aimed at preserving state control of major lenders, industrial observers say.
Just before the CCB roadshow, the China Banking Regulatory Commission called a meeting on corporate governance of big banks. The CCB is China's biggest property lender.
"When big banks go public, it should be a key goal for them to maximize their market value," said Liu Mingkang, the country's top banking regulator.
"In their management, (the banks) should thoroughly understand how to balance credit risks, market risks and yields."
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