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HSBC takes stake in Bank of Communications
(Agencies)
Updated: 2004-08-06 16:48

A deal signed between the Hongkong & Shanghai Banking Corp (HSBC) and the Bank of Communications demonstrates the determination and confidence of the Chinese government to push forward the banking reform, Chinese Vice-Premier Huang Ju said in Beijing Thursday.

"The signing of the deal is also an important measure to further financial reform," Huang said when he met with John Bond, group chairman of HSBC Holding.

The Bank of Communications and the HSBC signed the deal, in which HSBC is to acquire 19.9 percent of Bank of Communications, in Beijing Friday.

Huang said the Bank of China and the People's Construction Bank of China, both State-owned banks, are instituting reforms on share-holding systems. Recently, the State Council has ratified a proposal of the Bank of Communications to further reform the share-holding system.

Huang voiced his hope that the two banks would conduct long-term cooperation based on mutual understanding and reciprocity, and try to set a good example for strategic financial cooperation.

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