Agricultural Bank now stock holding company

January 9, 2009

, SHANGHAI, January 9 – Agricultural Bank of China has been transformed into a stock-holding company, the lender said on Friday, bringing it a step closer to an eventual stock market listing.

The Ministry of Finance and Central Huijin Investment Co, a unit of the country\’s sovereign wealth fund, each has a 50 percent stake in the bank with a registered capital of 260 billion yuan (38 billion dollars), the lender said in a statement on its website.

The bank, the weakest of China\’s four major state-owned commercial banks, received a 19-billion-dollar government cash injection in November as part of its preparations for an eventual stock listing.

The introduction of shareholders demanding a return for their investment would force the bank to start operating for profits — a break from its role so far of supporting government policies, observers say.

Get top business news for the day direct to your inbox

Latest Articles

Live prices

Stock Market

Most Viewed