Deutsche Bank to sell its stake in Hua Xia Bank

Deutsche Bank will sell its 19.99% stake in China’s Hua Xia Bank to Chinese insurer subsidiary PICC Property and Casualty for RMB23-25.7 billion (US$3.5-3.9 million), The Wall Street Journal reported. The German bank recorded a EUR649 million (US$712.6 million) impairment charge on its stake, as it posted a EUR6 billion loss for the third quarter. Deutsche Bank is the latest lender in recent years to reduce its holdings of a Chinese bank as the sector’s profits have come under pressure and bad debts have risen–among them Goldman Sachs Group, which in 2013 sold its remaining stake in Industrial & Commercial Bank of China.