Bank of America Corp (BAC.N) is selling about half its stake in China Construction Bank (0939.HK) for $8.3 billion, in its latest effort to shed assets and boost capital. A group of investors is buying 13.1 billion CCB shares from Bank of America, with the deal expected to close in the third quarter. The U.S. bank declined to name the investors but two sources said Singapore state fund Temasek was among the buyers. Bank of America needs to boost capital by some $50 billion in the coming years to meet new global rules, according to multiple analyst estimates. CCB is the second-largest bank by market value in the world, and Bank of America's ties with the Chinese bank are seen as an important source of future growth. Bank of America's willingness to sell part of its CCB investment shows how far it must go to meet new capital requirements, analysts said.
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Shares of BAC traded higher by 5.93% or $0.46/share to $8.22. In the past year, the shares have traded as low as $6.01 and as high as $15.31. On average, 235951008 shares of BAC exchange hands on a given day and today's volume is recorded at 223816096.
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