Chinese government is looking to slash its holdings in the country’s biggest banks over time as it seeks to introduce more private capital into state-owned enterprises, according to Huijin vice chairman.
Answering a question from reporters on the sidelines of a conference in Frankfurt, Central Huijin Investment vice chairman Li Jiange said China is encouraging "public-private partnership."
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The "trend must be reducing government holdings in the state-owned banks to allow more social capital," Bloomberg quoted Jiange as saying.
Jiange, who is also chairman of Shenyin & Wanguo Securities, however, declined to give a time frame for any sales.
Huijin, a unit of China’s $653bn sovereign wealth fund China Investment Corporation (CIC), is a major shareholder in China’s biggest banks.
Huijin has periodically purchased listed shares of Chinese commercial banks and other financial firms on the secondary market.
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By GlobalDataThe state investment fund had investments in 18 Chinese financial institutions as of the end of 2013, but none in other countries, according to its website.
