Enter multiple symbols separated by commas

BofA Sells Half of China Bank Stake, Raising $8 Billion

Following whirlwind negotiations through the close of Asian markets Monday, Bank of America has sold about half its 10 percent stake in China Construction Bank to a handful of sovereign-wealth funds and institutions in the U.S. and Asia, $8.3 billion before taxes.

China Construction Bank
STR | AFP | Getty Images
China Construction Bank

The deal, which CNBC first reported on Friday, was announced by Bank of America shortly after markets opened in New York.

Shares were up about 3.5 percent in the immediate aftermath of the news.

Bank of America’s CCB sale is the latest in a series of transactions that have added to the bank’s capital reserves.

Just last week, billionaire Warren Buffett invested $5 billion in Bank of America, which has struggled of late with investor criticisms and a sinking stock price, and earlier this month, the bank announced plans to sell its Canadian credit-card business.

The U.S. bank purchased its stake in CCB in 2005, around the time of the Chinese bank’s initial public offering, for roughly $3 billion.

Follow Kate on Twitter: @katekellycnbc

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • More upside for bank stocks?

    Is the real bank rally just getting started? Rich Ross of Evercore ISI and Andrew Burkly of Oppenheimer discuss with Brian Sullivan.

  • Gamestop beats on top, bottom line

    Gamestop is reporting EPS beat of $0.68 on revenue beat of $2.06 billion, with CNBC's Kate Rodgers and the "Closing Bell" panel.

  • Truth about buybacks

    RBC's Jonathan Golub and Oppenheimer's Andrew Burkly talk corporate share repurchases with Brian Sullivan.