Banking News
- ICBC world's fourth-biggest company
Date: 9-Aug-2007 Sources: (Shenzhen Daily)
INDUSTRIAL & Commercial Bank of China Ltd. (ICBC) became the world's fourth-biggest company by market capitalization after its Shanghai shares rose by a record 9.83 percent yesterday.
The stock closed at 6.37 yuan (84 U.S. cents) on relatively low valuations and because it has lagged behind the overall market for a few weeks. Bank of China Ltd. (BOC) advanced 7.5 percent, pushing it among the world's top 20 companies by market capitalization.
The valuations reflect a stock market advance that has created six of the world's 30 biggest companies, with ICBC eclipsing Citigroup Inc., AT&T Inc. and Toyota Motor Corp. Chinese individuals are moving more of their US$2.2 trillion in savings into the domestic market, closed to most foreigners, to join the rally as interest rates remain lower than inflation.
The rise in ICBC's share price gives it a market capitalization of US$260.3 billion, trailing only Exxon Mobil Corp., General Electric Co. and Microsoft Corp.
ICBC shares trade at 35 times 2006 earnings, while Bank of China trades at 32 times.
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