In separate news, a China state bank has suspended FX swaps with UBS, Societe Generale, Credit Agricole, and BNP Paribas after those banks had reportedly reached their credit limits with the BoC.
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China announced on State TV that the Peoples Bank of China was going to allow fresh appreciation of the yuan, and undertake its bit for global rebalancing.
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But while China Investment Corporation (CIC), China Development Bank and state-owned energy companies will continue to be big players, other enterprises will be making outward moves using diversified financing.
Known as CICC, it is a joint venture between state-owned China Construction Bank and the New York investment bank Morgan Stanley.
By contrast, none of the senior executives from China's state-controlled bank and energy giants are scheduled attend this week's forum, according to the forum's list.
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Meanwhile, the state-controlled China Development Bank is said to be negotiating a takeover of Shenzhen Development Bank, one of the few financial institutions controlled by foreigners.
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When China's state-owned Agricultural Bank was recently listed, no big Western bank bought a significant stake.
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Mr Shang's former job running the China Securities Regulatory Commission goes to Guo Shuqing, who until recently was chairman of China Construction Bank, a giant state-controlled bank.
Large, state-controlled lenders China Development Bank Corp. and Export-Import Bank of China are planning to pitch dim-sum bonds in London to investors, said people familiar with the matter.
He has given China's rotten banks three years to shape up: the Bank of China, for instance, the country's least sick state bank, is about to announce it will sack half its 200, 000 staff.
The state-owned Bank of China just opened the first U.S.-branch savings account denominated in Chinese yuan.
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Meanwhile, the state-owned Bank of China said it was halting transactions from North Korea's Foreign Trade Bank on Tuesday.
The state-run Bank of China Ltd. has notified the Foreign Trade Bank of North Korea that its account or accounts were being closed and all financial transactions suspended, said a bank spokeswoman, reading a brief statement.
Goldman is the lead investment bank for the IPO of one of the most egregious of such state-owned enterprises, the Bank of China.
But China and Russia, who are have been setting up new SWF's, are set to make bigger and more ambitious purchases through state-owned companies like Gazprom and the China Development Bank (CDB).
Abandoned by the former Harrah's Entertainment Inc. in 2008, Baha Mar last year found a new financial backer in the Export-Import Bank of China and a builder in China State Construction Engineering Corp.
On Wednesday, China Construction Bank sold stakes totalling 3.5% to three state-owned companies for 8bn yuan.
Interest-rate and exchange-rate decisions come under Zhou Xiaochuan , head of the People's Bank of China, and a former director of the State Administration of Foreign Exchange, now run by Yi Gang .
As the impact of the global financial crisis grows, and real estate remains in a troubled state, the bank said the gross domestic product in China will amount to 7.5% in 2009, down from its previous prediction of 9.2%.
Some analysts have warned China's recovery is being shored up by state-led investment and bank lending and could be vulnerable if trade or investment weakens.
If China eases capital controls at its border before easing those within the country, there could be a rush for the door as depositors in China's state-owned banks hurry to put their money in foreign bank accounts or stockmarkets.
Several publicly-listed state-controlled banks unveiled impressive third-quarter profits: Bank of China's quarterly profits rose by 9% from a year ago, ABC saw a rise of 40% and China CITIC posted a 41% increase.
Over the past few years, state-owned financial institutions, mainly the Export-Import Bank of China and the China Development Bank, have extended tens of billions of dollars to Brazil, Russia and Kazakhstan, among other countries.
Yet although they remain tiny compared with Chinese giants like ICBC and China Construction Bank, there is often more than a whiff of Beijing about the Indian state lenders.
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Brazil, Russia, India and China (and newcomer South Africa) want to set up their own regional development bank, heads of state said in India on Wednesday at the annual BRICS Summit.
On December 10th, Wang Xuebing, the former head of Bank of China in Hong Kong (the listed arm of one of the mainland's big four state-owned banks) was jailed for 12 years for graft.
Guo Shuqing, the head of the China Securities Regulatory Commission, said that the regulator had already reached an agreement with the Chinese central bank and the State Administration of Foreign Exchange to raise the QFII limit.
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