The Industrial and Commercial Bank of China (ICBC) Chairman Jiang Jianqing confirmed yesterday the biggest State bank of China would sell shares to the public in 2006, following on the heels of the China Construction Bank and Bank of China (BOC) in a market listing rush.

"We will materialize an initial public offering (IPO) and market listing this year," Jiang said.

But he declined to confirm whether his bank would be listed in the domestic market, which recently soared on improved market sentiment.

Jiang said he expects the ICBC, by market value, to be among the world's top 10 banks, with 2006 business profits exceeding 100 billion yuan (US$12.5 billion).

Chinese banks have piled up a mountain of problem debts over the past decades due to reckless usually government-ordered lending to State-owned enterprises, sapping their competitiveness, analysts said.

However, they have been shedding off hefty bad debts, pushing forward joint-stock reform, inviting foreign investors, trying to secure stock market listings and taking other measures to help streamline operations in advance of the full opening of China's banking markets to foreign rivals under a commitment to the World Trade Organization in 2001 by the end of this year.

The BOC has kicked off an IPO in Hong Kong slated to be the world's biggest in six years by raising an estimated 68.07 billion Hong Kong dollars, triggering a buying spree on the BOC's State bank status and upgraded operation.

Source: China Daily