Hang Seng Bank to sell $2b Industrial Bank stake

Hang Seng Bank will sell a 5% stake in China's Industrial Bank for Rmb12.73 billion $2.03 billion to improve its regulatory capital position.

Goldman Sachs' Sino-foreign securities joint venture, Goldman Sachs Gao Hua Securities, is handling the share sale, according to a filing on the Hong Kong Exchange website.

Hang Seng, which is Industrial Bank’s second-largest shareholder, will sell up to 952.6 million shares at Rmb13.36 per unit, representing a 7% discount to the February 9 closing price on the Shanghai Stock Exchange.

Hang Seng, a subsidiary of HSBC, previously owned 10.87% in Industrial Bank and will see its stake...