Bank of China starts share offer

Set to be the world's biggest initial share offering since 2000, it comes as China continues to open up its banking sector to foreign competition.

A consortium of international banks led by Royal Bank of Scotland spent $3bn on a 10% stake in Bank of China last year.

Trading of Bank of China shares is expected to start on 1 June.

Opening up

China's state banks face a huge increase in competition from December, when the government will open the retail banking market to overseas lenders who will be able to open their own branches in the country.

A number of Chinese banks have been seeking foreign investment to help them prepare for the challenge.

The country's largest lender, Industrial & Commercial Bank of China, is planning a $10bn share flotation for later this year.

Bank of China has one of the most international outlooks of all China's banks, with offices around the world and a listed subsidiary in Hong Kong.

Its position as China's principal foreign exchange bank has also enhanced its profile in the eyes of would-be investors.

But some analysts have warned off investors, pointing out the bank's problems with bad loans, fraud investigations and antiquated computer systems.

RELATED INTERNET LINKS:
Bank of China
The BBC is not responsible for the content of external internet sites