China Construction Bank (0939.HK) reported a 31% increase in profits for the first half of 2011, as monetary policy in Beijing has allowed the bank to charge higher interest rates, MarketWatch reported. The state-owned bank, the country’s second-largest lender, also announced plans to open a subsidiary in Moscow and increase investment in its insurance unit, CCB Life Insurance. Though the bank has decreased lending, higher interest rates aimed at curbing inflation have raised interest income for the bank by 24% to USD$13.84 billion. The bank has reduced bad loans over the first half from 1.14% to 1.03%, though it still has the largest exposure to the domestic property market of all the Chinese banks. Bank of America paid nearly US$3 billion for a 10% stake in CCB in 2005, and now owns 25.6 million shares.