Some of the world's top bankers are currently wrestling with one of the biggest decisions of their careers: whether to take up offers to buy “strategic” holdings in two of the large state-owned banks that China wants to float on the stock market this year or next.

Beijing is keen to get its troubled industry into better shape before World Trade Organisation commitments oblige it to open its market at the end of next year. It hopes pressure from private shareholders and alliances with foreign partners armed with superior knowhow and management skills will improve its banks' performance and equip them to face internationalcompetition.