Of Special Interest
6th September 2011
China was major buyer of CCB stake
It has been widely reported that a Chinese consortium was the largest buyer of the 5% stake in China Construction Bank sold by Bank of America at the end of last month. At the time of the sale only foreign sovereign wealth funds were mentioned as major purchasers. The State Administration of Foreign Exchange, the National Social Security Fund, and Citic Securities bought much of the CCB shares. China is said to have used a number of brokers in order to disguise the identity of the purchasers at the time. This is viewed as a share price support movement as bank share prices have fallen this year and a significant fall in the CCB price could have led to a general fall in all listed bank stock prices. It is also alleged in US media that the Chinese regulators had first played a key role in persuading Bank of America to sell only one-half of its CCB investment and not all of it.