SHENZHEN plans to turn its branch of the Agricultural Bank of China into a shareholding company, according to mayor Li Youwei.
Under the plan, the central government will retain a majority stake, while the Shenzhen authorities, and other private parties, will hold a minority interest.
If Beijing approves the plan, the bank will become the first national financial institution in China to convert to a shareholding company. The move is also likely to encourage other cities to follow a similar path.
The Agricultural Bank of China is one of five specialised institutions on the mainland - the others being Bank of China, Industrial and Commercial Bank of China, People's Construction Bank of China, and China Investment Bank.
Mr Li pointed out that most economic revolutions in the world started with banking reforms. ''Here, however, only two commercial banks - China Merchants Bank and Shenzhen Development Bank - have decentralised,'' he said.
''If the Agricultural Bank becomes a shareholding company, it will need to abide by international practices, and its functions will be decided by market forces,'' he added.
