BEIJING: China has allowed two big state-banks to use US$41bil in equity owned by the finance ministry to help clean up their balance sheets, in a further step towards preparing them for stock market listings.
Under a reform plan that includes a US$45bil capital injection, Bank of China and China Construction Bank have been allowed to write off unrecoverable loans using the ministry’s equity as well as their own profits and reserves, according to banking officials and analysts.
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