Associated Press

Beijing, April 22:

China announced plans today to inject $15 billion into its biggest state-owned commercial bank as part of efforts to turn it into a profitable, independent competitor as Beijing opens its financial markets to foreign rivals. The Industrial and Commercial Bank of China will use the money to replenish its financial reserves, the official Xinhua News Agency reported. Like other state banks, ICBC is burdened by billions of dollars in unpaid loans to state companies. The communist government is preparing its major state-owned commercial banks to raise capital by selling shares for the first time to private investors, including some abroad. Regulators believe ICBC is ‘basically ready’ to take such a step, Xinhua said, though no date has been announced. The amount given to ICBC is smaller than the $22.5 billion given each to two other major state-owned banks last January in the first stage of the overhaul. Xinhua didn’t explain why ICBC was receiving less money.