China’s agriculture bank to get $19 bn capital injectionOctober 22nd, 2008 - 6:09 pm ICT by IANS
Beijing, Oct 22 (Xinhua) The Agricultural Bank of China (ABC) will get capital injection worth $19 billion from the country’s state-held wealth fund or sovereign wealth fund, a top ranking bank official said Wednesday. Central Huijin Investment Ltd., a unit of the $200-billion China Investment Corp., will inject into the ABC cash in dollars equal to 130 billion yuan, ABC vice president Pan Gongsheng told a press conference here.
Central Huijin Investment Ltd. and the finance ministry will each hold 50 percent stake in the bank.
Technical preparation for the bank’s initial public offering (IPO) will be complete in the second half of 2009, he said, adding that specific timetable and place of IPO have not been decided yet.
The announcement came a day after the Chinese cabinet approved in principle ABC’s restructuring plan, which will pave the way for the last of China’s big four state-owned commercial banks to go public.
The ABC is visualised to play an important role in China’s thrust to restructure rural financing with a view to increase production and lift the quality of living.