Hong Kong: Bank of America Corp is considering further reducing its stake in China Construction Bank Corp, a newspaper reported said on Monday, after the US bank cut its holding by half in August.
BofA officials contacted CCB over the weekend to say that the US bank was weighing selling part of its remaining CCB stake to boost its capital, the South China Morning Post reported, citing people familiar with the matter.
BofA and CCB officials declined comment.
In August, BofA sold about half its 10% stake in CCB raising about $8.3 billion. BofA’s remaining stake is worth about $9.2 billion based on CCB’s current market value.
CCB’s Hong Kong-listed shares were down 2.8% by mid-morning, while the benchmark Hang Seng Index was down 0.16%.