ICBC to list bill discount operation

The Industrial & Commercial Bank of China (ICBC) plans to commercialise its new nationwide bills discounting unit next year and eyes a listing in 2002, according to the bank's bills department general manager Li Yinghui.

China's banks have been offering a host of new products to try to broaden their portfolios in preparation for greater competition after the country enters the World Trade Organisation.

ICBC, China's biggest bank, launched the country's first nationwide bills discounting centre last week, offering domestic and foreign bank services, including rediscounting and buy-back of bank drafts and commercial bills.

Commercial bills rediscounting is underdeveloped in China due to a feeble credit rating system and the lack of a nationwide marketplace.

Banks can take bills to other banks for rediscounting but only the central People's Bank of China had a centralised rediscounting centre.

Furthermore, China's laws prohibit using bills as investment instruments so banks tend not to promote them to clients.