BEIJING - BANK of America is selling part of its stake in China's second-largest bank, China Construction Bank said on Wednesday, in a sale that could be worth up to US$3 billion (S$4.4 billion) as the US financial company raises money to cope with turmoil in its home market.

Bank of America will sell 5.62 billion shares it holds in China Construction Bank, the Chinese bank said in a statement. It gave no financial details but Construction Bank shares were trading at HK$4.24 on Wednesday morning in Hong Kong, which could make the deal worth up to US$3 billion.

Phone calls to Bank of America's Asian headquarters in Singapore were not answered.

Bank of America, based in Charlotte, North Carolina, bought 9 per cent of Construction Bank in 2005 for US$3 billion and paid US$1.9 billion in May to raise its stake to 11 per cent.

It was not immediately clear what proportion of Construction Bank shares it would own if the sale announced on Wednesday goes ahead as planned.

State-owned Construction Bank, based in Beijing, is China's second-largest commercial lender by assets after Industrial & Commercial Bank of China. -- AP