Finance Ministry Gets Direct Ownership Stake in Guangfa Bank
What’s new: China Guangfa Bank Co. Ltd. received approval for a shareholding change, becoming the sixth bank partially owned directly by the Ministry of Finance.
The China Banking and Insurance Regulatory Commission (CBIRC) approved the transfer of 1.14 billion shares, or 5.22%, of Guangfa Bank from state-owned State Grid Yingda International Holdings Co. Ltd. to the Ministry of Finance, the commission said Wednesday. The transfer will involve no exchange of funds.
State Grid Yingda, a wholly owned subsidiary of the government-owned electric utility State Grid, will reduce its stake in the bank from 15.65% to 8.92% after the transfer, becoming the third-largest shareholder after China Life Insurance with 43.69% and Citic Trust Co. Ltd. with 15.65%. The Ministry of Finance will become the fifth-largest shareholder, according to business registration information.
The background: This is first national joint-stock bank in which the Ministry of Finance will directly hold shares. Previously, the ministry held shares in a number of joint-stock banks, including China Everbright Bank and Hengfeng Bank Co. Ltd., mainly through Central Huijin Investment Co. Ltd., a government-owned investment company.
The ministry also has direct stakes of more than 10% in five state-owned banks—China Development Bank, Export-Import Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China and Bank of Communications.
Guangfa Bank, founded in 1988, is one of the earliest joint-stock commercial banks in China. The bank has gone through several rounds of equity change in the last few years.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
Contact reporter Denise Jia (firstname.lastname@example.org) and editor Bob Simison (email@example.com)
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