Industrial and Commercial Bank of China (ICBC), China's biggest bank, said Thursday it was discussing with foreign investors to sell a 10 percent stake by year-end to pave the way to go public in 2006 or 2007.

ICBC is expected to be the next target of the government's banking reforms and receive up to US$50 billion in State funds before possibly listing, following in the footsteps of Bank of China and China Construction Bank.

"Within this year, we will finish financial reforms and become a shareholders' company and introduce foreign investors," Jiang Jianqing, ICBC president and chairman, told reporters on the sidelines of the World Economic Forum in Singapore.

He said these steps must be taken before the bank could consider a public listing either next year or in 2007. ICBC last week received a smaller-than-expected capital injection of US$15 billion from the government to help it clean up its balance sheet.

"We are in the midst of negotiations (with foreign investors) ... because our market cap is large, we hope to introduce strategic investors at about 10 percent," Jiang said.

Xinhua reported in March that Dutch-Belgian financial group Fortis had met with the bank.

In another development, ICBC said Thursday it had received the $15 billion capital injection from China's foreign exchange reserves.

The Chinese government last week approved the capital injection by China Central Huijin Co. to boost ICBC's capital base. Central Huijin is an investment vehicle set up by the State Council in late 2003 as part of the program for State bank reform.

"The US$15 billion capital from Central Huijin Co. has reached our account," ICBC said.

.Source: Shenzhen Daily