Updated from 1:36 a.m. EDT
Bank of America
has sold 13.5 billion shares it owned in
China Construction Bank
for $7.3 billion, reports say.
A group that includes Temasek Holdings, Hopu Investment Management and China Life Insurance purchased the shares for HK$4.20, a discount from China Construction Bank's close of HK$4.91 a share on Monday, the
Wall Street Journal
report, citing people familiar with the matter.
said Bank of America's sale amounted to a 5.8% stake in China Construction Bank.
Bank of America is free to sell one-third of its 16.7% stake in China Construction Bank following the expiration Thursday of a lock-up period, the
reports. Banks acting on BofA's behalf had approached institutions and hedge funds about the sale, people familiar with the situation said.
Bank of America is looking to raise capital following the results of stress tests announced by the
last week. The Fed revealed that the country's 19 biggest financial institutions will need to raise $75 billion as a buffer against loan losses through the remainder of the economic downturn. Of the banks that were tested, Bank of America required the biggest infusion, of $33.9 billion.