CHINA’S Bank of Communications Co. (BoCom) plans to sell stakes to private investors under a government reform aimed at letting private capital play a bigger role in the economy, sources familiar with the matter said.

    The country’s fifth-largest bank by assets had applied to become the first State-controlled lender to pilot so-called hybrid ownership, the sources said Friday.

    The application comes just over a week after the government named six State-owned enterprises (SOEs) that it wanted to revamp operations to attract investment.

    The government in November ordered SOEs to bring in private investors to improve efficiency and competitiveness and help reduce debt, with the ultimate aim of supporting the economy.

    “BoCom has submitted an application for a pilot program and is awaiting approval from relevant government departments,” said one of the sources, who declined to be identified.

    BoCom is a joint stock bank whose biggest shareholder is the Ministry of Finance with 27 percent, followed by HSBC Holdings with 19 percent.

    “For State banks, pushing forward mixed ownership reform helps improve corporate governance after they’ve achieved join stock systems and listings,” said BoCom chief economist Lian Ping. (SD-Agencies)