BBVA, Spain’s second-biggest bank, has sold a 5.1% stake in China Citic Bank for $1.27 billion in an effort to improve its balance sheet, marking another selldown of a Chinese bank by under-capitalised US and European lenders.
Citic, the parent and the controlling shareholder, has bought Citic Bank’s H shares. After the sale, Citic will increase its interest in the bank from 61.85% to 66.95%, while the Spanish bank will hold 9.9%, compared to 15% previously.
Shares of Citic Bank rose as much as 5.3% to HK$4.37 yesterday upon the news. Analysts said the news is positive and shows the parent company’s support by injecting...
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