HONG KONG - BANK of China shares tumbled on Thursday after Hong Kong billionaire Li Ka-shing's foundation sold more than US$500 million (S$741.1 million) worth of shares in the lender, becoming the latest investor to cut its investment in China's banking sector.
A unit of the Li Ka Shing Foundation sold two billion shares at HK$1.98 each - a 7.5 per cent discount to Wednesday's closing price, according to a term sheet for the deal. The total amount raised in the sale, which closed on Thursday, was US$511 million.
Bank of China, the mainland's No. 3 lender, fell 8.4 per cent to US$1.96 on the Hong Kong stock exchange.
The sale comes a day after Bank of America Corp, looking to raise money to cope with economic turmoil, sold a 2.5 per cent stake in China Construction Bank for about US$2.8 billion.
Last month, Swiss bank UBS AG said it sold its stake in Bank of China in a deal estimated to be worth around US$900 million.
Mr Li, who presides over Hong Kong conglomerate Hutchison Whampoa Ltd and developer Cheung Kong (Holdings) Ltd, is one of the world's richest people, with a fortune that's been estimated by Forbes at US$26.5 billion.
Merrill Lynch was the sole book runner on the deal. -- AP
