CENTRAL Huijin Investment Co has agreed to transfer its ownership in Bank of Communications to the Ministry of Finance to help consolidate the nation's financial resources.
Analysts said the move is a management shift among government bodies and will not affect the country's fifth-biggest bank. Central Huijin will transfer its three billion Hong Kong-traded shares in BoCom to the finance ministry, the Shanghai-based bank said yesterday in a filing to the Shanghai Stock Exchange.
The ministry's holdings in the bank will be raised to 26.48 percent from 20.36 percent after the transfer.
BoCom is the smallest among the country's big five state-owned banks. The Ministry of Finance is its biggest shareholder, and HSBC holds 19.15 percent.
London-based HSBC has said it wants to raise its holding in the Shanghai-based bank to 19.9 percent, and it also has an option which takes effect in August to lift its stake to 40 percent. Now, overseas players can only hold 25 percent of a Chinese bank.
HSBC and BoCom are poised to start a credit card joint venture as BoCom aims to transform itself into a leading wealth-management bank on the mainland.
BoCom ended at 10 yuan (US$1.41) in Shanghai trading yesterday, down 0.2 percent.