Deutsche Bank May Join This List of Lenders Cutting China Stakes

Deutsche Bank AG’s move to classify its stake in Huaxia Bank Co. as non-strategic is fueling speculation that the German lender will sell out. Global banks including Bank of America Corp. and Goldman Sachs Group Inc. have raised at least $14 billion divesting shares in Chinese lenders since the start of 2012 as new rules require more capital to be held against the investments.

* Hang Seng Bank Ltd. in May 2015 sold a second stake in Industrial Bank Co. for about $2.7 billion as it sought to boost capital, cutting its holding in the Chinese lender to less than 0.9 percent.

* Spain’s Banco Bilbao Vizcaya Argentaria SA in January 2015 sold 4.9 percent of China Citic Bank Corp. for about 1.46 billion euros ($1.6 billion), after selling a stake for 944 million euros in October 2013.

* HSBC Holdings Plc in December 2013 sold its 8 percent stake in Bank of Shanghai Co. While it didn’t disclose the price, the shareholding was valued at about $468 million on its balance sheet. HSBC still owns about 19 percent of Bank of Communications Co., according to the Chinese lender’s first-half earnings report.

* Bank of America in September 2013 ended an eight-year investment in China Construction Bank Corp. when it sold its 2 billion shares, equal to 1 percent of the Chinese company’s stock. The U.S. lender posted a $750 million pretax gain from the sale.

* Goldman Sachs in May 2013 ended a seven-year investment in Industrial & Commercial Bank of China Ltd. when it sold a $1.1 billion stake. The Wall Street firm had earlier raised $2.5 billion through a separate sale in April 2012.

* Citigroup Inc. in March 2012 sold its entire stake in Shanghai Pudong Development Bank Co., nine years after the purchase, raising $668 million. Citigroup owns 20 percent of China Guangfa Bank Co., according to the Chinese lender’s 2014 annual report.

— With assistance by Aipeng Soo

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