Bank of America to sell Temasek shares still in demand

CCB executives knew in advance that BofA would sell CCB shares in May, just as they knew ahead of Singapore's Temasek Holdings to increase its stake in CCB. May 13, Bank of America confirmed the average of HK $4.2 per share, privately placing the newly lifted 13.5 billion shares of CCB.　　The group, led by the private equity fund, Hopu, the main investor of Hopu, is Temasek. May 14, the construction Bank issued a notice, disclosed the Bank of America to sell the shares of buyers, of which 2.77 billion shares sold to China Life and its subsidiaries, 2.2 billion shares sold to BOC Asia, 8.5 billion shares sold to offshore funds.　　A Bank of America spokeswoman said the fund included a subsidiary of Hopu and Temasek. Guo Tianyong, director of the Bank of China Research Center at the Central University of Finance and Economics, told Huaxia Times: "Bank of America is placing CCB shares at a price of HK $4.2 per share, compared with the day before yesterday, with a price discount of 14%, or about 10 times times." Temasek's stake in CCB, measured by price, is an affordable deal. Temasek is a strategic investor in the Bank of China and CCB, which owns 5.65% of CCB's shares and 4.13% of BOC's total equity holdings.　　At the beginning of the year, Bank of Scotland, Bank of America to reduce the stakes in Chinese banks, Temasek High-profile said it will not reduce the bank, and hopes to increase its stake in CCB. "The banks of Europe and America have not shaken off the financial crisis, and only China can find the safest banks," said Ms. Zhang, a banking securities analyst at Bohai Securities. Temasek is naturally bullish on China's banking sector. "Temasek joined hands with private-equity allies in the operation, HOPU chairman Fangfenglei the limelight.　　Bank of America sold 13.5 billion shares of CCB, about 6% of CCB's total equity, and the Overseas Fund led by Hopu fund ate 8.5 billion shares. As early as January this year, Hopu took over the bank's share of BOC's shares, costing HK $5 billion. During the two increase, Fangfenglei more openly expressed confidence in China's banking sector, saying: "The Chinese government will not let China's banks go wrong when there is a systemic crisis in the banking system in Europe and the United States." The bank's excess provision in the first quarter proved their prudence. "And some industry insiders believe that Hopu's continued holdings of Chinese banks is a reflection of Temasek's strategic intentions."　　Hopu was established in 2007 with a capital of $2.5 billion trillion, with Temasek contributing 800 million U.S. dollars to the largest contributor, with the remaining shareholders being Goldman Sachs Group, the Canadian Civil Service Pension Fund, Shell, the National University of Singapore Pension Fund, and Japan's central Agricultural and forestry treasury. In a short span of six months, the Hopu fund took over 5 billion Hong Kong dollars, the construction of CCB shares may need to fund not more than 30 billion Hong Kong dollars, and the Hopu fund 2.5 billion capital scale of HK $20 billion, why can pry this two acquisition?　　Some analysts said that the Hopu fund has received funding from the Singapore Consortium. Guo Tianyong said: "Temasek GroupThe local business encountered some difficulties in the Chinese market has tasted the sweetness of financial investment, which has helped to further increase the investment in China's financial sector. He added: "In the Hong Kong market, investment institutions on the valuation of listed companies are often very different, Hopu fund dared to buy BOC and CCB, first of all bullish on the prospects of Chinese banks." "As investors, Temasek is more of a long-term investor than Bank of America and Bank of Scotland," he said. Temasek is also one of the biggest shareholders of Minsheng Bank, which can invest at least two Chinese banks because of the clear qualification of domestic laws for foreign wars.　　Temasek withdrew from Minsheng last year, focusing on Bank of China and CCB. "Want to increase the number of people than want to reduce the" Bank of America's reduction of CCB shares to raise 7.3 billion U.S. dollars, easing its own financial pressure.　　US banks were required to increase their capital by $33.9 billion trillion after the US banking stress tests. After reduction, Bank of America's shareholding in CCB from 16.7% to about 11%, is still the second largest shareholder, the Bohai Securities analysts said that the relationship between the two will not move away from the construction Bank also special issued a statement, the Bank of America to improve its capital situation, the sale of the holding of a regular stake in the CCB,　　Under normal market behavior, CCB will continue to cooperate with Bank of America in various business areas.　　Since the end of last year, Bank of China, ICBC, CCB's strategic investors held a regular lock on the holding of shares, foreign shareholders selling shares is a lingering obsession.　　December 31 last year, the Royal Bank of Scotland, the Swiss bank and other institutions to sell 3.378 billion shares of the unlimited conditions of the BOC stock sold all, in April, Allianz Group and Fortis Group will hold a portion of the ICBC share placements. The bank's share price rose 1.63% per cent to HK $4.98. CCB for foreign shareholders to sell out appears very calm, a high-level statement said: "To increase the number of investors in CCB, Temasek is only one of them, want to overweight more people than want to reduce." ”