A vice-governor of China's central bank, Xiang Junbo, is expected
to take the helm at the Agricultural Bank of China (ABC) to steer
it through its shareholding reform in order to secure a market
listing.
It is not clear what post the People's Bank of China's Xiang
will take but Caijing magazine, a leading financial
publication, reported that the 50-year-old would be appointed as
the governor and the chairman of the board upon the accomplishment
of the shareholding reform.
Analysts say the new appointment will not lead to immediate
moves such as inviting in strategic investors or financial
restructuring as the bank is widely known to be the worst hit by
massive lending to the rural sector, with a non-performing loan
rate of 23.43 percent at the end of 2006, far higher than those of
the other three state commercial banks, which have all been listed
in Hong Kong and domestic A share markets.
Before being promoted to the post of vice-governor of the
People's Bank of China in July 2004, Xiang spent eight years with
the National Audit Office. His background will be constructive to
strengthening the risk control of the ABC, analysts say.
China initiated the reform of the "big four" banks after the
first national financial work conference in 1997. The China
Construction Bank took the lead in market listing in October 2005,
followed by the Bank of China last year.
The Industrial and Commercial Bank of China, the country's
biggest lender, staged a dual debut in both Hong Kong and Shanghai
bourses on Oct. 27.
All three have followed the steps of government capital
injections, dealing with non-performing loans, establishing
shareholding companies, introducing strategic investors and seeking
opportunities for listing.
Up to US$70 billion would be needed to clear the bank's
non-performing loans before it could meet overseas listing
standards, analysts have said.
Su Ning, vice governor of the People's Bank of China, replaced
Xiang as the chief of the Shanghai Head Office of the PBOC, a
central bank statement said on Monday.
(Xinhua News Agency July 17, 2007)
