Bocom seeks to reform, sees positives

Bank of Communications (Bocom; 3328.HKG, 601328.SHA) anticipates that reforming its ownership structure to include more private and foreign investment will reduce risk and boost competitiveness, Bloomberg reported, citing a statement to the Shanghai stock exchange on Sunday. Reuters reported on July 25 that the lender wanted to sell more stakes to private investors and had applied to become the first state-controlled bank to pilot so-called hybrid ownership. “When you bring in more private capital, in theory it will help improve corporate governance and boost efficiency,” said Guotai Junan Securities analyst Richard Cao.