China's Social Security Fund will invest more than 18 billion yuan (2.25 billion U.S. dollars) in the Industrial and Commercial Bank of China, the country's biggest lender, according to an agreement the two signed Monday.

Chairman Jiang Jianqing of the bank said the deal, pending approval from the China Banking Regulatory Commission, is "another important result achieved by the ICBC in inviting foreign strategic investors."

A foreign trio of Goldman Sachs, American Express and Allianz Group has already paid a combined 3.78 billion U.S. dollars for a 8.89 percent stake in the ICBC, the biggest-ever amount of foreign investment in China's banking industry.

China hopes its "big four" state banks, including the ICBC, Bank of China, China Construction Bank and Agricultural Bank of China, would strengthen corporate governance and streamline operation with the help of foreign investors and public listings.

Investors are also eager to buy Chinese bank shares so as to tap into the robust Chinese economy, which grew about 10 percent in each of the past three years.

The Shanghai Securities News reported last week the ICBC is expected to list its shares in Hong Kong as early as September, followed by another domestic listing.

A previewing view among Chinese brokerages is that the bank's domestic share offering could be materialized later this year, if market conditions are suitable.

Xiang Huaicheng, head of the SSF, said the investment announced Monday shows the SSF is "actively supporting" the ICBC with full confidence in the banking giant.

The SSF, a government-sponsored national pension fund, receives most of its capital from the treasury and through sales of previously non-tradable shares held by the government, among other channels.

It reported a 24 percent year-on-year rise in its assets, which grew to 211.8 billion yuan by the end of 2005, the Xinhua-run China Securities Journal reported Monday.

Source: Xinhua