The Chinese government is slowly embracing privatization with talks of gradually lowering its stakes in the nation’s biggest banks, Bloomberg reported, citing Central Hujin Investment. The nation is encouraging “public-private partnership,” said Li Jiange, vice chairman of Central Huijin. The “trend must be reducing government holdings in the state-owned banks to allow more social capital,” Li added. The company has been buying shares of lenders including Industrial & Commercial Bank of China (6011398.SHA) in recent years, as valuations slumped to record lows amid concerns that an economic slowdown and interest-rate deregulation will erode profits.
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