"We have conducted shareholding restructuring in the two State-owned commercial banks according to international conventions and expect the two banks to be listed next year," Zhou said in a speech published on the Web site of the People's Bank of China.

Zhou made the speech to the annual meeting of the International Monetary Fund and World Bank earlier this month, but it wasn't posted on the Web site until Tuesday.

Zhou didn't say where the two banks would be listed, but earlier domestic media reports said they were seeking both domestic and overseas listings.

Bank of China and China Construction Bank each got a US$22.5 billion cash injection from foreign reserves at the end of 2003, and officially launched new shareholding companies in recent months.

As well as preparing for a listing, the restructuring allows the banks to get badly needed expertise from strategic foreign investors.

Policymakers eventually intend to apply the model used in reforming both banks to the balance sheets of Industrial & Commercial Bank of China and Agricultural Bank of China.

In another development, the China Securities Journal said Tuesday that China Construction Bank was expected to cap its foreign-owned stake at 20 percent before its expected initial public offering next year.

Construction Bank was seeking foreign strategic investors to prepare a listing planned for next year.

(Shenzhen Daily October 13, 2004)