Chinese goverment to lower its bank stakes

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.