Learning English - Words in the News
27 October, 2006 - Published 14:39 GMT
China's biggest bank's shares go up
The Industrial and Commercial Bank of China
Shares in the Industrial and Commercial Bank of China rose strongly in Hong Kong and Shanghai on Friday after its stock sale generated huge demand from investors. This report from Quentin Sommerville:
Listen to the story
The Industrial and Commercial Bank is China's biggest bank. Friday's share offering, which could reach almost twenty two billion dollars in value, is the world's largest. Backed by cheering from traders at the Shanghai Stock Exchange, the shares got off to a flying start, jumping by almost ten per cent. At the same time, the bank's shares were also being listed on the Hong Kong index, where they jumped eighteen per cent.
The shares have proved a hit with ordinary Chinese investors. Banking stocks are viewed as a safe bet and a good way of cashing in on China's phenomenal economic growth. However that's only thanks to a massive bail out by the Chinese government.
For a long time Chinese banks lent money unwisely. They were more concerned with following Communist party wishes than with making a return on their money. A fifteen billion dollar cash injection from Beijing helped the ICBC get its books in order before today's listing.
The Chinese government, which will still own most of the bank, sees this as a good investment. China's fast moving market economy needs a modern banking system and China's banks need to be in shape for the full arrival of foreign competitors at the end of this year.
Quentin Sommerville, BBC News, Shanghai
Listen to the words
Backed by cheering from
supported and encouraged by shouting
got off to a flying start
began to sell really well
jumped
here, suddenly increased in value
proved a hit
become very popular
a safe bet
a low risk action which you are sure is going to succeed
a massive bail out
a big money investment made to rescue something or someone
making a return
making a profit
cash injection
giving money (in order to improve the bank's financial situation)
get its books in order
improve its financial situation to an acceptable level
to be in shape
to perform well, to be in a good condition
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