January 7, 2009

Bank of America, the U.S. lender that is seeking to raise cash to weather a dismal market at home, sold a $2.83 billion portion of its holding in China Construction Bank on Wednesday, dragging the Hong Kong-listed shares of the Chinese bank 8.8 percent lower.

The three largest mainland Chinese banks, including China Construction, attracted big strategic investments from Western financial giants at the time of their initial public offerings. Those investors are now under pressure to find cash as the global financial crisis ravages the banking industry, and additional stake sales are expected.