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State Ownership, Policy Missions and Commercial Operation – A Case Study of the Agricultural Bank of China

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  • Yuk-shing Cheng
  • Kam-pui Tsang
  • Man-kit Chung

Abstract

China has maintained government control over major banks through its holding of controlling shares, leading to concerns about their possible policy burdens. In the case of the Agricultural Bank of China (ABC), the explicit policy mission of serving the rural economy and farmers has been assigned along its public listing in stock markets. Although it has adopted strategies to redefine the scope of rural business and implemented organizational and regulatory reforms to reduce the costs of implementing the policy missions, the contradiction between policy and commercial objectives has not been reconciled.

Suggested Citation

  • Yuk-shing Cheng & Kam-pui Tsang & Man-kit Chung, 2019. "State Ownership, Policy Missions and Commercial Operation – A Case Study of the Agricultural Bank of China," Chinese Economy, Taylor & Francis Journals, vol. 52(2), pages 142-154, March.
    • Handle: RePEc:mes:chinec:v:52:y:2019:i:2:p:142-154
    DOI: 10.1080/10971475.2018.1545366
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