Deutsche sells stake in Hua Xia Bank

Deutsche Bank said on Monday that it has agreed to sell its entire 19.99% stake in Hua Xia Bank, at a time of more onerous capital rules on holding minority stakes in financial institutions and in the wake of a corruption scandal at the Chinese bank.

It is selling its stake in the Beijing-headquartered bank to Chinese state-controlled insurer PICC Property and Casualty Company, better known as PICC, for a price tag between Rmb23 billion to Rmb25.7 billion $3.54 billion to $3.96 depending on exchange rates at the time of completion, a tidy profit on what it paid for the shares.

The sale follows an...