"Giving high priority to reforms for stockholding systems inside the Agricultural Bank of China and strengthening its services in the rural areas" was included in the annual government report Premier Wen Jiabao delivered at the ongoing 1st session of the 11th National People's Congress.
Reform of the Agricultural Bank of China (ABC) is going to be a hot issue among insiders in 2008.
The President of ABC Xiang Junbo told reporters recently that the bank would strictly conform to the principles requested by the China Banking Regulatory Commission when absorbing strategic investors, but detailed standards still need further research and discussion.
Xiang Junbo briefed the media on the bank's principles:
Firstly, the investors to be absorbed by the ABC have to be internationally influential first-class investment agencies.
Secondly, share holding terms must exceed a certain period, and such stock ownerships might result in close strategic partnership relationships between the ABC and the strategic investors.
Thirdly, besides absorbing investment, the investors are expected to help improve the ABC's management mechanisms by bringing about advanced administrative techniques, especially those of risk management.
Fourthly, ABC will share product R&D and service network resources with strategic investors, and cooperate with them.
Finally, absorbing strategic investors would not only noticeably increase ABC's marketing value and competitive power, but also would give returns to the investors.
For more details, please read the full story in Chinese (http://finance.sina.com.cn/g/20080310/02204598884.shtml).
(China.org.cn March 10, 2008)
