Jun
03

China Banks Rally on Optimism That Bocom Will Lead Reform Drive

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Bank of Communications Co. led a rally in Chinese banking shares in Shanghai and Hong Kong on optimism that the government is poised to approve its reform plans.

Bocom, the nation’s fifth-largest lender and part-owned by HSBC Holdings Plc, surged by its daily limit of 10 percent in Shanghai and gained as much as 7.5 percent in Hong Kong, the biggest increase in six months. Bank of China Ltd. rose 4.7 percent in Shanghai and China Merchants Bank Co. added 6.9 percent in Hong Kong as of 10:46 a.m. on Thursday.

Shanghai-based Bocom’s final mixed-ownership reform plan was submitted to the State Council about a month ago, people familiar with the matter said yesterday. The lender wants market-oriented systems for decisions on personnel and compensation, the people said, adding that the bank expects the plan to be approved as early as within two weeks…

China Banks Rally on Optimism That Bocom Will Lead Reform Drive

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