2 Chinese banking giants may go public in 2005

The Bank of China (BOC) and China Construction Bank (CCB) -- two of the country's Big Four state-owned banks -- are both seeking stock market listings sometime in 2005, presidents of the banks revealed Tuesday in Beijing.

President Li Lihui of the BOC told a press conference held by the central bank that his bank is gearing up for a listing, but "speed should be subject to quality."

"We hope that all our financial indices can reach the standard of a listed company at the time of our initial public offering," he said. "The listing date hinges on our preparatory work and market conditions."

President Chang Zhenming of CCB said his bank is "actively" bracing for the listing by inviting well-known overseas agencies to help audit its business.

Both banks are negotiating with potential strategic investors --probably more sophisticated financial institutions -- who will buy stakes in the Chinese banks and help them streamline their operations, the presidents said. They declined to reveal the investors' names, however, citing "commercial secret concerns."

The exchanges the banks would be listed on are also not known.

China chose the BOC and CCB as pilot banks for joint-stock reform and market listing at the end of last year, injecting 44.5 billion US dollars in foreign currency reserves into the banks to replenish their capital.

Reviewing the progress this year, a central bank spokesman said China's bank reform has achieved "sound eff