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CIC Pays $175M For Construction Bank Stake

China Investment Corp. has boosted its stake in Hong Kong–traded shares of China Construction Bank Corp. by acquiring 2.76 billion of its H shares.

China Investment Corp. (CIC) has boosted its stake in Hong Kong–traded shares of China Construction Bank Corp. by acquiring 2.76 billion of its H shares. China’s $410 billion sovereign wealth fund has purchased the shares from Bank of America Corp. with a total transaction volume of $1.75 billion.

As part of the transaction, CIC paid an average price of $0.634 per unit for the total number of share purchased, bringing its stake 60.46 percent from 59.31 percent, adds Bloomberg. The second-biggest U.S. lender by assets, BofA also aims to bolster its capital by selling a total of 10.4 billion shares of Construction Bank this month in private transactions, leaving it with a 1 percent interest.

Click here for the release from China Investment Corp.

Click here for additional coverage from Bloomberg.

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