BEIJING - BANK of America, a major shareholder in China Construction Bank, has dismissed a report that it called off plans to sell a US$3 billion (S$4.3 billion) stake following objections from Beijing.

'We suspended the sale of the shares for our own internal reasons,' said Bank of America spokesman Robert Stickler in a statement emailed to AFP late on Monday.

The Financial Times last week cited people familiar with the situation as saying that Bank of America chief executive Ken Lewis scrapped the plans after a phone call with Guo Shuqing, his counterpart at China Construction Bank.

It said dealmakers believe 'Beijing was unhappy about the timing', which is likely to fuel fears that overseas investors struggling under the financial crisis will have difficulty offloading lucrative holdings in China's banks.

Bank of America's stake in China Construction Bank rose to 19.1 per cent after it exercised an option last month to nearly double its stake, but had been widely expected to sell part of the shares it acquired.

Stickler did not rule out the possibility of a disposal of some stakes in the Chinese bank in the future, but insisted that it would remain a shareholder.

'I cannot speculate on when or whether we might sell CCB shares, but it is certainly possible we would do so in the future while keeping a significant ownership stake in CCB,' he said.

He added that the relationship between the two banks 'has never been stronger' and the American bank enjoys 'a very solid relationship with the Chinese government'. -- AFP