CCB: Partnership with Bank of America Unaffected by Share Unloading

The China Construction Bank (CCB) said Thursday its strategic cooperation with the Bank of America will not be affected by the U.S. lender's sale of a 2.41 percent stake in the Chinese bank.

The Bank of America made the decision to reduce its shareholding because of its own financial difficulties, said an unnamed spokesman in a statement on the CCB website.

The move won't affect the status of Bank of America as the CCB's second largest shareholder, said the spokesman, adding that the CCB was fully confident on its future partnership with the U.S. bank.

The Bank of America sold 5.62 billion CCB shares for 2.8 billion U.S. dollars on Wednesday to cope with cash strain due to the global financial crisis.

That trimmed the U.S. lender's holding in the CCB to 16.72 percent from the previous 19.13 percent, sending the CCB's Hong Kong-listed shares 8.76 percent down on Wednesday to 4.06 HK dollars (53 U.S. cents).

The Bank of America had repeatedly pledged they will not give up the market with the biggest potential for growth and the good opportunity for win-win with the CCB, said the CCB spokesman.

The two banks had had quite deep discussions and communication before the share sale, according to the CCB statement.

Some foreign financial institutions might adjust their investment strategies because of the global market changes and their own financial conditions, said the CCB spokesman.

All parties should make their moves according to laws and market rules and enhance communications and cooperation, he said.

There have been growing investor concerns that more foreign institutions would sell their shares in Chinese lenders to ease their own pressure as global financial crisis spread.

UBS AG sold 3.378 billion H-shares it held in the Bank of China (BOC) last week, and Hong Kong tycoon Li Ka-shing's Magnitico Holdings Ltd. is reported on Wednesday to be offering 2 billion BOC shares.

Source: CRIEnglish