Bank of America Sells 5.62 B shares in Chinese Bank

On Wednesday Bank of America Corp sold 5.62 billion shares in China Construction Bank at HK $3.92 per share at an 11.91 percent discount, reaping a total of HK $22.03 billion. However, Bank of America still has a holding in the mainland bank at 16.6 per cent down from 10.13 per cent.

China Construction Bank had been notified of Bank of Americas transaction and understood that the US Bank had sold its shares due to the financial situation at this time. The shares were sold to other long-term institutional investors. In terms of relativity, the disposal of shares only accounted for 29 per cent of the total shares that had its 3-year lock up period expired.

In related news, Mr. Li Ka-shing sold his stake in Bank of China for HK$4.06 billion. Mr. Li sold his shares at HK$1.98 to 2.03 each for 5.14 to 7.48 per cent lower than yesterday’s HK$2.14 close.

Foreign financial groups and other investors are being compelled to sell their shares in many mainland banks due to the need to raise cash. Bank of China, Bank of Communication, Industrial and Commercial Bank of China are also banks that have foreign institutions which hold a stake.