Bank of China, a state bank, has issued subordinated debts totaling RMB27bn (US$3.3bn) in a bid to solidify its capital base before its public offering. Its first bond issues in 2005 were snapped up by institutional investors through the central bank's debt floating system. The BOC and China Construction Bank are surrogates in China's campaign to reform its banking system before 2006 when foreign banks are allowed to participate in the mainland's banking market without restriction, as stipulated by the WTO. Meanwhile, in a bailout package, China pumped US$45bn into the other two state banks, the Industrial and Commercial Bank of China and Agricultural Bank of China.
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