China's State Council, or cabinet, on Tuesday said it approved the comprehensive shareholding reform plan of the Agricultural Bank of China (ABC).

The ABC, one of the country's big four state-owned commercial banks, had the basic conditions for restructuring into a shareholding bank, according to the executive meeting of the State Council, presided over by Premier Wen Jiabao.

"The bank should become a modern commercial lender featured by adequate capital, sound governance, strict internal control, safe operation, quality service, good profitability and strong global competitiveness," the cabinet said.

The bank also should expand networks in rural areas and increase credits to focus on supporting farmers, agriculture and countryside, according to the meeting.

The meeting didn't give details of the restructuring plan, which could pave the way for a share listing.

Industrial and Commercial Bank of China, China Construction Bank and Bank of China, the other three state-owned banking giants, all have gotten listed on the stock exchanges.

The listings came after the infusion of government funds shored up balance sheets at the three lenders and helped restructure them into shareholding banks.

The ABC recorded non-performing loans (NPLs) of 817.97 billion yuan (US$119.7 billion) at the end of 2007, with the NPL ratio standing at 23.5 percent.

The State Council also gave nod to build new infrastructure projects, including roads, airports, nuclear power and hydropower stations, to boost investment and economic growth.

It also ordered to quicken the first phase construction of the middle and central routes of the massive South-to-North Water Diversion Project.

China's economy expanded 9 percent in the third quarter from a year earlier, down from 10.1 percent in the second quarter, the National Bureau of Statistics said on Monday.

Among other economic stimulus is the increase in tax rebate for certain textile and garment exports by 1 percent to 14 percent from November 1. The move announced on Tuesday aims help exporters cope with paper-thin profit margins squeezed by slacking overseas demand, yuan's appreciation and rising production cost.

(Xinhua News Agency October 22, 2008)