Bank of Guangzhou is planning to sell 30% of its government-owned stake, an insider told Yicai.com Wednesday. The bank's capital has increased to ¥8.3 billion ($1 = ¥6.8) after four boosts between 2001 and 2008, and its billions of yuan of toxic assets were stripped to represent a zero non-performing loan ratio by the end of last year. BPEC, France's second biggest bank, is in talks with the Guangzhou government and doing due diligence for the deal, according to the source. The Guangzhou government now owns 93% of the commercial lender, which posted net profit up 168.1% to ¥1.1 billion and had ¥129.4 billion in total asset as of 30 June 2010. The government may finally reduce its ownership to 50%, added the source.
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