Business News
Bank of America sells share in China Construction Bank
Jan 7, 2009, 9:04 GMT
Beijing - Ailing Bank of America Corp sold a 2.8-billion-dollar share of China Construction Bank Corp, the Chinese bank confirmed Wednesday, expressing understanding for the move, owing to the US lender's difficult financial situation.
China Construction Bank said Bank of America's sale of 5.62 billion shares, or 12-per-cent stake, of its holdings in China's second-largest bank after Industrial & Commerical Bank of China was 'normal market behaviour.'
The US lender now holds 16.6 per cent of China Construction Bank, whose shares plunged almost 6 per cent at the Hong Kong stock exchange.
Experts also expect other banks to reduce their shares in Chinese lenders because of the global financial crisis.
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