The Royal Bank of Scotland Group (RBS) will sell its entire 4.3% stake in Bank of China (BoC) for as much as US$2.37 billion, in the latest example of a foreign strategic investor shedding shares of a Chinese bank as the lockup period on shares expires, the Wall Street Journal reported. Despite a decline in the price of BoC shares over the last year, RBS could still make a profit of up to US$794.3 million from the deal, analysts told the paper. Foreign investors are selling their shares in Chinese banks due to concerns that non-performing loans will increase as China’s economy slows. The Li Ka-Shing Foundation sold 2 billion of its 5 billion shares in Bank of China for US$511 million last week, just days after UBS sold its entire 1.33% stake in Bank of China for US$808 million.
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