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Bank of America selling stake in Chinese bank

The Associated Press

Bank of America said Tuesday it will sell its stake in China Construction Bank Corp., and it expects about $750 million in pre-tax proceeds.

The Charlotte, N.C., company owns a 1 percent stake in CCB, or about 2 billion shares. It expects to record a gain on the sale during the current quarter.

Bank of America and CCB recently extended a strategic assistance agreement, and that agreement isn't affected by the sale. The agreement lasts through 2016.

Reports published earlier Tuesday said Bank of America wanted to get as much as $1.5 billion from the sale.

Bank of America Corp. was one of several Western financial institutions that bought into Chinese banks. Those holdings are more problematic under new banking regulations that impose higher capital requirements.

In May, Goldman Sachs sold its remaining stake in China's biggest commercial lender, state-owned Industrial & Commercial Bank of China Ltd., for $1.1 billion.

Shares of Bank of America rose 13 cents to $14.25 Tuesday.