Bank of America in Chinese sale

Bank of America is to sell a stake in China Construction Bank, in a move that is expected to raise some $3bn (£2bn), the Chinese bank has said.

The US bank said the sale was because of "its own financial conditions under the current severe turbulence of the international financial crisis".

The sale of 5.62 billion shares represents around 12% of the US company's stake in the finance firm.

Other firms are tipped to make similar moves in China as a way to raise funds.

"The news had been expected but investors will still take it hard because Bank of America will most definitely sell more. They need the money," said Francis Lun, general manager for Fulbright Securities in Hong Kong.

Shares in China Construction Bank dropped nearly 6% following the news.

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