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Agricultural Bank to launch holding company soon

By Wang Lan (chinadaily.com.cn)
Updated: 2008-12-24 13:19

Agricultural Bank of China (ABC) is expected to inaugurate a holding company before the 2009 Spring Festival on Jan 25 as part of its restructuring from a State-owned bank to a commercial institution and in preparation for an eventual public listing, China Business News reported on Dec 23.

The bank has completed the final stage of shareholding reform by successfully stripping off its non-performing assets, a source familiar with the situation told the newspaper. The personnel arrangement in the proposed holding company is in the process of being finalized.

In Nov 2008, the Ministry of Finance and Central Huijin, a subsidiary of the country's sovereign fund, jointly established a fund to take over and manage the bank's bad loans of 800 billion yuan ($116.79 billion).

Pan Gongsheng, vice-president of the bank, was earlier quoted as saying that the bank would be "technically" ready for an initial public offering by the second half of 2009.

ABC is also known to be pursuing a dual listing in Shanghai and Hong Kong, following the example set by the other three State-owned commercial banks, said an internal newsletter issued by the bank.