BofA May Get $13 Billion Capital Boost on China Stake

Bank of America Corp., hit by last month’s disclosure of a potential $10 billion charge tied to new regulations, may add $13 billion to its book value when it posts gains from a Chinese bank stake for the first time in October.

The windfall stems from Bank of America’s 11 percent stake in China Construction Bank Corp., according to analysts at Wells Fargo & Co. and Royal Bank of Canada. The shares have been valued at original cost of $9.2 billion because they couldn’t be sold until August 2011, according to the bank. With the lockup expiring in less than a year, accounting rules require the stake to be carried at market value -- now $22.1 billion.