Nov. 10 (Bloomberg) -- China Minsheng Banking Corp., the lender that’s planning a Hong Kong stock sale, booked an 824 million yuan ($121 million) loss on its stake in UCBH Holdings Inc., whose bank was seized by U.S. regulators last week.

Minsheng paid 887 million yuan to accumulate a 9.9 percent stake in San Francisco-based UCBH, the Chinese lender said in a stock exchange filing today. UCBH’s United Commercial Bank was seized by regulators and bought by East West Bancorp, the Federal Deposit Insurance Corp. said.

The seizure won’t have any “major impact” on Minsheng’s operations and profit because impairment charges already taken have been “relatively sufficient,” the statement said.

Beijing-based Minsheng, China’s first privately owned bank, was weighing a plan to boost its holding in UCBH to at least 50 percent, people familiar with the matter said last month. United Commercial, which serves the Chinese community in San Francisco, became the 120th U.S. bank to fail this year as souring real estate loans sapped lenders’ balance sheets.

Minsheng plans to raise as much as HK$31.54 billion ($4.07 billion) in a first-time share sale in Hong Kong, according to people with knowledge of the matter. Minsheng shares rose 0.1 percent to 8.18 yuan as of 9:51 a.m. local time in Shanghai. The stock has doubled in value this year.

For Related News and Information: Top financial stories: FTOP <GO> Stories on China Banks: TNI CHINA BNK <GO> Banking industry debt and equity monitor: BANK <GO> Relative value comparison: 600016 CH <Equity> RVC <GO>

Last Updated: November 9, 2009 21:16 EST