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People's Daily Online>>China Business

US bank sells China Construction Bank holdings

By Tian Junrong (People's Daily)

08:04, November 18, 2011

Edited and translated by People's Daily Online

Beijing, Nov.18 (People's Daily Online) --Bank of America sold about 10.4 billion H shares, or a stake of more than 4 percent, in China Construction Bank, through private transactions to a group of institutional investors on Nov. 11 and Nov. 14, the Chinese bank announced in a statement on Nov. 15.

After the sale, the U.S. bank still holds more than 2.1 billion H shares, or a nearly 1 percent stake, in the bank.

Normal market action to replenish capital

Industry insiders estimated that the sale can generate an after-tax gain of 1.8 billion U.S. dollars, which will improve Bank of America's struggling core Tier 1 capital ratio.

"Bank of America sold CCB shares mainly for its own reasons. As a systemically important financial institution, it needs to increase its capital adequacy ratio, so the sale of their shares is just a normal market action," CCB President Zhang Jianguo said.

Bank of America has repeatedly expressed its satisfaction with the performance of China Construction Bank and said the bank has bright prospects as well as long-term investment value, Zhang said. Furthermore, Temasek Holdings and other investors have shown interest in increasing their holdings of CCB shares, he said.

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Canada at 2011-11-1970.36.49.*
Does the Bank of America own Merrill Lynch? I wonder if the BOA is financial trouble? Not sure but think U.S. brokerage accounts are only insured for $100,000.00 US dollars.
  

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