Bocom’s sweeping reform plan approved by State Council
(19 June 2015 – China) Bank of Communications (Bocom) said in a stock exchange statement on 16 June it will explore adding private capital and giving strategic investors a more effective role.
The decision follows China’s State Council approving a sweeping reform that includes potential changes in ownership.
In the Statement, Bocom said it plans stock incentives for employees and management.
To aid economic growth, China’s government is looking to facilitate a market-driven financial industry.
Bocom is not the only lender looking to implement this type of plan, Bank of China Ltd and China Construction Bank Corp are expected to mirror the plan, leading to long-term gains in share prices.
Bocom has previously indicated it was looking into further mixed ownership and improved corporate governance.
As of March, the finance ministry owned 26.5 percent of Bocom and HSBC held 18.7 percent.
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