China Development Bank Corporation (CDB), the largest of China’s policy lenders, is reforming the structure of two subsidiaries so they operate as more efficient, commercially-viable entities, the Economic Times reported Wednesday.
Over the weekend, China’s central bank had asked the cabinet for permission to change the way “sluggish and capital-guzzling state-owned enterprises” operated.
CDB Leasing, a Shenzhen-based financial leasing company, and CDB Securities, based in Beijing, will be turned into joint-stock companies, with the expectation they will be listed on the stock exchange, unnamed sources told the Web site.
Two other units will also undergo changes in their governance framework to improve efficiencies and cut costs, the China-Africa Development Fund and China Development Bank Capital.
The CDB, which will remain under the direct jurisdiction of China’s State Council, provides financing for large infrastructure investment both home and abroad.
Categories: Asia Unhedged