Bank Of America Announces Sale Of &Nbsp Of 13 Billion 100 Million CCB, And Will Earn 3 Billion 300 Million Dollars.

On the evening of August 29th, BA C announced on Monday that it would sell half its stake in China Construction Bank, which is 13 billion 100 million shares, and is expected to earn 3 billion 300 million dollars.

A banking analyst said that the reasons for international investors to reconfigure Chinese banking stocks were partly due to concerns about the risks of local financing platforms, and on the other hand, because of their own need to replenish capital.

The analysts believe that international investors withdraw from domestic banks or come out of the tide.

Risk anticipation and

"At present, there are big differences between international investors and Chinese analysts, which are mainly based on the judgment of local financing platform's debt risk."

Sino German securities banking analyst She Minhua told the economic reference Daily reporter.

Liao Qiang, rating director of the S & P financial institutions, believes that based on the strong growth of credit assets in the banking industry in the past two years and the weakening of the related lending standards caused by the government stimulus plan, the quality of bank assets has been weakened, and the superimposed effect of China's continued tightening policy will increase the bad assets ratio of Chinese banks in the next three years.

At the same time, due to the reasons for future government changes and other reasons, local financing platforms and other issues may not be exposed in the short term, but there is a great potential risk in the future.

In addition, business

Earlier, the Bank of America considered selling part of Merrill Lynch part of its business to replenish its capital, but in the end it was publicly denied by C E O monnehan. "Because of the hidden risks of Chinese banks' financing platform and the current favorable timing of arbitrage, the Bank of America has to choose to sell Chinese banking stocks under the weight and weight."

A banking analyst at Guotai Junan thinks.

Temasek or take over CCB

A bank analyst told the economic reference daily that "the Bank of America's reduction of CCB is a surprise. The most important thing is that the shares have been approached by buyers, so it is not a big shock to the market."

Although the identity of the buyer has not yet been announced, some sources say it is Singapore's sovereign investment fund Temasek, but this has not been confirmed.

Among the buyers of the US bank negotiations, there are also groups of sovereign wealth funds and institutions such as the US, China, Malaysia and the Middle East. Therefore, other buyers are not excluded.

In fact, in July 5th this year, Temasek has sold some shares of Bank of China and Construction Bank H shares in the two tier market, which has total cash HK $28 billion.

This is the largest reduction in Temasek since the four largest state-owned banks have been listed.

"If Temasek takes over again, it will not rule out the possibility of reconfiguring its assets.

This confirms that the last time Temasek's reduction to CCB is a technical adjustment.

When China's banking sector increased its investment last year, Temasek fully injected capital bank and China Construction Bank more than 3 billion new yuan, Ding Wei said, "we oversold last year, based on investment balance strategy, so we will sell part of this year."

According to the 2010 annual report released by Temasek recently, since Temasek shifted its focus to Asia in March 31, 2002, it has achieved an annual return rate of 21% over the past nine years, which is equivalent to 5.5 times the original investment.

Today, when the Temasek investment strategy is being repositioned, selling the mainland bank shares in large quantities makes the market worry about its overall view of China's banking industry.

The return of excess return is a major foundation for foreign institutions to cash in.

Zhao Ruian, vice president of Beijing bank, told the economic reference daily that foreign banks' stake in Chinese banks is actually a "predatory investment".

For example, he said, "the Bank of Beijing has just been listed, the issue price is 12.5 yuan, and the price of Holland IN G group's stake in Beijing bank is 1.95 yuan, and its income is unimaginable."

He admitted that after introducing foreign capital, the Bank of Beijing could enhance its risk management ability and corporate governance level, but the introduction of foreign capital should be a fair price.

This will ensure the healthy development of our banking industry and enable foreign investors to share the fruits of China's economic development rationally without predatory investment.

Strategic exit of international investors

Since 2005, China's banking sector has formally adopted the shareholding system reform. In the same year, the Bank of America and Temasek spent $2 billion 500 million and $1 billion 466 million on the 9% and 5.1% stake of the construction bank respectively.

Since then, in November 2008, the Bank of America has completed the delivery of shares related to Huijin, and the Bank of America has increased 19 billion 580 million shares of China Construction Bank and its shareholding ratio has risen to 19.13%.

In terms of industry, China, construction and trade, four of the international investors who participated in the capital injection were currently holding 638 million shares of ICBC, accounting for 0.18% of their total share capital. Only the Asian Development Bank held about 304 million shares of the Bank of China, accounting for 0.11% of its total share capital. The Bank of America held about 25 billion 580 million shares, accounting for 10.23% of the total share capital, while Efficient Finance Holding Ltd, a company under Temasek, held 14 billion 131 million shares of the Construction Bank, accounting for 5.65% of the total share capital.

In the long run, Zhang Jianguo, President of China Construction Bank, believes that bank of America will hold at least 5% of CCB's shares for a long time.

In addition, the first 7 years of strategic cooperation between China Construction Bank and Bank of America will be discussed at the end of 2012. The two sides will discuss the possibility of business cooperation in cross-border RMB settlement, cross-border equity investment and mergers and acquisitions, and expect a new strategic cooperation agreement between the two sides.

She Minhua predicted that the overall trend of banking stocks in the second half of the year is expected to remain stable, and will not be worse than the first half of the whole.