China is accelerating the transfer of state-owned holdings in major banks to the country’s social security system.
The Ministry of Finance (MOF) recently announced that it will be transferring 10% of its holdings in Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) to the National Council for Social Security Fund (SSF)
The equity scheduled for transfer has a combined value of in excess of 115.1 billion yuan.
ABC has since announced that MOF will be making a one-time transfer of 10% of its stake in the bank to SSF, comprised of approximately 13.742 billion A shares, accounting for 3.92% of all common stock.
The value of this equity stake is estimated to be in excess of 47.48 billion yuan.
ICBC has also announced that MOF will be transferring 123.316 billion shares in the bank, comprising 3.46% of the bank’s common stock, estimated to be worth in excess of 67.7 billion yuan.
MOF has previously transferred 10% of its equity holdings in the People’s Insurance Company of China and China Taiping to SSF.