China Life eyeing bank stake
(Xinhua)
Updated: 2006-07-03 08:48
China Life Insurance Company Limited, the nation's biggest life insurer, is
seeking a stake of Agricultural Bank of China, chairman of the company said.
Chairman Yang Chao told the press Sunday China Life is "willing to
conduct capital cooperation with ABC and establish deep ties in terms of
shareholding reforms and market listing."
In response, ABC President
Yang Mingsheng said he holds an "optimistic attitude toward Yang Chao's
expectations," adding that the bank will make early research into the issue of
inviting strategic investors.
"Agricultural Bank offers China Life a
chance," though the insurer has failed to become a stakeholder of other big
state lenders, the president said.
Like some other domestic banks, the
debt-laden ABC is planning the transformation into a joint-stock company and
public listing to help streamline operations. The bank's long-running problems
with irregularities and reckless lending are allegedly severe.
Under a
WTO commitment, China is to fully open its financial market to foreign
competition by the end of this year.
Agricultural Bank has been an agent
for China Life insurance products for 15 years.
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