BofA begins final exit from China Construction Bank

Selling-off US$1.5 billion stake.

Bank of America Corporation started selling its remaining stake in China Construction Bank Corporation yesterday, marking the final step of the U.S. bank's prolonged exit from the Big Four state-owned lender.

BofA becomes one of a growing number of Western banks that have found their investments in Chinese banks did not result in the strategic benefits they expected.

Goldman Sachs Group, Inc earlier got rid of its seven-year investment in Industrial and Commercial Bank of China, the world’s largest bank.

The sales coincide with signs of rising stress in the Chinese banking system also plagued by mounting bad loans as economic growth slows. Several Chinese banks are preparing to launch equity sales to bolster their capital base.

BofA’s investment in CCB began in 2005 when it paid US$3 billion for a 9.9% stake in CCB. It began reducing its holdings in 2009 and 2011. BofA has been cleaning up its balance sheet since the financial crisis of 2008.