China to play role in General Motors IPO

SHARON SILKE CARTY - AP Auto Writer
FILE - In this Oct. 27, 2006 file photo, the Chinese national flag stands near a branch office of the Industrial and Commercial Bank of China at the Shanghai Stock Exchange in Shanghai, China. (AP Photo/Eugene Hoshiko, File)
FILE - In this Oct. 27, 2006 file photo, the Chinese national flag stands near a branch office of the Industrial and Commercial Bank of China at the Shanghai Stock Exchange in Shanghai, China.

Among the banks helping General Motors with its initial public stock offering next week are two identified by initials only: ICBC and CICC.

Americans uncomfortable with U.S. government ownership of General Motors may want to hear more: One of those banks is the Industrial and Commercial Bank of China, one of China's four big central government banks. The other, China International Capital Corp., is a joint venture run primarily by Central Huijin Investment Ltd., an arm of the state, and Morgan Stanley.

This is the first time Chinese government banks have participated in a major U.S.-issued IPO, according to IPO tracking firm Dealogic. The banks are listed as co-managers in the offering, meaning they will sell a portion of the new shares.