The Bank of America has sold 5.62 billion shares - worth USD2.8 bn - in China Construction Bank, Reuters reports. Investors say the U.S. bank could sell more of its investment in the Chinese bank to fund losses in the United States and elsewhere.
The largest U.S. bank has reportedly sold 5.62 billion of the shares it
purchased in China's second largest lender, cashing in some of its
USD14 bn paper profit from the deal. In 2005, Bank of America purchased
stocks in China Construction Bank and has since invested to increase
its shareholding. In November 2007, it paid USD7 bn to almost double
its stake, to 19.1 per cent.
The massive share sale comprises only 13 per cent of its total
investment, the report says. Investors believe that Bank of America
will sell more of its holding in CCB in the near future. Last week, UBS
sold its entire stake in Bank of China.
Related story:
UBS Sells Bank Of China Stake
http://www.bizchina-update.com/content/view/1775/2/
Last update : 07-01-2009
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