HONG KONG, Nov 18 (Reuters) - Shares in China Construction Bank dropped on Tuesday, with analysts citing investor concerns that Bank of America may dispose of some of its holdings in the China's No.3 bank in the coming quarters to bolster its own capital.
The third largest lender in the U.S. said on Monday it will boost its holding in China's No.3 bank to 19.1 percent from 10.75 percent.
Despite the announced plan, investment bank Goldman Sachs said in a report that some investors remain concerned about the U.S. bank later possibly whittling down of its shares in China Construction Bank amid deteriorating consumer credit in the U.S.
The stock opened 1.5 percent down at HK$4.05 and was down 2.4 percent at $4.01 as of 0213 GMT.
Shares in China Construction Bank have been hurt by worries that Bank of America may dispose of some of its three-year old investment in the Chinese lender to bolster its own capital.
The stock dropped neary 27 percent last month ahead of the end-October deadline for the U.S. bank's lock-in period for some of its existing holdings in China Construction Bank.
(Reporting by Parvathy Ullatil; editing by Ken Wills) Keywords: CCB STOCKS (Reuters Messaging: parvathy.ullatil.reuters.com@reuters.net; +852 2843-6415) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The third largest lender in the U.S. said on Monday it will boost its holding in China's No.3 bank to 19.1 percent from 10.75 percent.
Despite the announced plan, investment bank Goldman Sachs said in a report that some investors remain concerned about the U.S. bank later possibly whittling down of its shares in China Construction Bank amid deteriorating consumer credit in the U.S.
The stock opened 1.5 percent down at HK$4.05 and was down 2.4 percent at $4.01 as of 0213 GMT.
Shares in China Construction Bank have been hurt by worries that Bank of America may dispose of some of its three-year old investment in the Chinese lender to bolster its own capital.
The stock dropped neary 27 percent last month ahead of the end-October deadline for the U.S. bank's lock-in period for some of its existing holdings in China Construction Bank.
(Reporting by Parvathy Ullatil; editing by Ken Wills) Keywords: CCB STOCKS (Reuters Messaging: parvathy.ullatil.reuters.com@reuters.net; +852 2843-6415) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2008 AFX News
