Sale of banks’ holding part of reform
Print Edition
CENTRAL Huijin Investment Ltd, a unit of China’s sovereign wealth fund, has sold 3.5 billion yuan (US$564 million) worth of shares in two of the country’s state-owned banks.
The sale pushed reform in the banking system but it also weighed on market sentiment.
Central Huijin sold 1.63 billion yuan of shares in the Industrial and Commercial Bank of China and 1.91 billion yuan of shares in China Construction Bank on Tuesday on the A-share market, according to a filing to the Hong Kong stock exchange yesterday.
The shares of ICBC were sold at 5.43 yuan apiece and CCB’s were sold at 6.81 yuan each, according to the statement.
ICBC fell 5 percent yesterday to close at 5.10 yuan after losing 1.3 percent on Wednesday. CCB shed 5.9 percent to 6.36 yuan, extending Wednesday’s 1.3 percent loss.
Both shares have been declining for three straight days.
The sale cuts Central Huijin’s holding of ICBC from 46 percent to 45.89 percent, and that of CCB from 5.05 percent to 2.14 percent.
Ma Kunpeng, an analyst with Sinolink Securities, said the sale of state-owned shares showed Central Huijin’s determination to accelerate banking ownership reforms.
“The large amount of state-owned shares in the banking system has been an obstacle for financial reform,” said Ma. “Huijin’s sale is an important signal for reforms to proceed.”
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