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| "We still have controls on the capital
account. I cannot say there are no speculative funds. But the amount
entering China is not large," says Zhou Xiaochuan, Governor of the
People's Bank of China. (Xinhua) |
The public listings of Bank of China (BOC) and China Construction Bank
(CCB) are "not far off," China's central bank chief said yesterday.
Zhou Xiaochuan, governor of the People's Bank of China the central bank
said the two banks had completed financial restructuring, and were
strengthening corporate governance and implementing internal reforms.
"I would say they are not very far away from being listed," he told a
press conference at the ongoing National People's Congress.
He said the final decisions on the listings will be made by the banks'
boards, which will consider factors such as the stock market situation.
"They will also listen to opinions of investment banks, financial
consultant companies and accounting firms in deciding the timing and venue
for the listings," Zhou said.
China is strengthening the four major State banks BOC, CCB, Industrial
and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC)
to prepare them for a "full opening-up" of the banking sector by the end
of 2006.
The listings are in accordance with Beijing's commitments to the World
Trade Organization.
The central bank is a key institution in formulating bank reform.
The central government injected US$45 billion in
late 2003 to boost the balance sheets of BOC and CCB after aggressive
bad-debt write-offs
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Media reports have quoted informed sources as saying ICBC is likely to
receive a US$50-billion capital infusion but financial officials have
refused to confirm the cash injection.
However, Zhou reiterated that reforms at ICBC and ABC must be pushed
forward.
"They will be based on the progress BOC and CCB make in their reforms
and their experience," he said.
Asked about China's forex system, Zhou dismissed the impact of
speculative funds on the renminbi.
"We still have controls on the capital account. I cannot say there are
no speculative funds. But the amount entering China is not large."
China's foreign exchange reserves have been surging since 2002. Many
financial experts claim an important reason behind the growth is
international speculative funds sneaking into China and betting on the
appreciation of the yuan.
Asked to confirm reports that the central bank is planning to set up a
mega branch in Shanghai, Zhou replied: "Shanghai has a special position in
China's financial sector.
"It is the central zone for many financial markets and it provides many types of
financial services nationwide...So the People's Bank of China's idea is that
our team in Shanghai should help the national financial markets there perform their functions
better."
(China Daily) | 
Updated: 2005-03-08 11:11