Hang Seng Bank to sell 16.8 billion yuan stake in China's Industrial Bank

Hang Seng Bank, a unit of HSBC Holdings, said it is selling a stake in China's Industrial Bank worth up to 16.8 billion yuan (S$3.61 billion) to bolster its capital position and to fund expansion. -- PHOTO: BLOOMBERG 
Hang Seng Bank, a unit of HSBC Holdings, said it is selling a stake in China's Industrial Bank worth up to 16.8 billion yuan (S$3.61 billion) to bolster its capital position and to fund expansion. -- PHOTO: BLOOMBERG 

HONG KONG (Reuters) - Hang Seng Bank Ltd, a unit of HSBC Holdings, said it is selling a stake in China's Industrial Bank Co Ltd worth up to 16.8 billion yuan (S$3.61 billion) to bolster its capital position and to fund expansion.

The sale of the up to 4.99 per cent stake is the second chunk of Industrial Bank that the Hong Kong-based lender has put on the market this year, after it raised about US$2 billion in February.

Hang Seng said in a statement late on Tuesday that it would retain 0.88 per cent of the Chinese bank on completion of the deal.

A sharp rise in Hong Kong shares has encouraged some financial investors to cash out their holdings, resulting in a wave of block deals in Hong Kong over the past few weeks.

Hang Seng Bank, 62.14 per cent-owned by HSBC, said it would sell 950.7 million shares of the Shanghai-listed lender at 17.68 yuan apiece, or a 5.96 per cent discount to the previous close.