Goldman Said In ICBC Exit With $1.1bn Sale

Yard Sale Sign

Goldman Sachs ended a seven-year investment in Industrial & Commercial Bank of China by selling a $1.1bn stake in the world’s largest lender by market value, a person familiar with the matter said.

Bloomberg reports that Goldman sold 1.58 billion shares in ICBC at HK$5.50 each, the person said, asking not to be identified as the information is private.

The Wall Street firm joins Citigroup and Bank of America in cutting holdings in China as new capital rules known as Basel III make it more expensive to hold minority stakes in banks.

Goldman Sachs has reaped about $12bn in sales proceeds and dividends from its $2.58bn investment in ICBC, calculations by Macquarie Capital Securities show.

'Many foreign banks are facing capital shortages with the new Basel requirement, so I’m not surprised that they dumped holdings in Chinese banks on which they’ve already made massive returns', said Chen Xingyu, a Shanghai-based analyst at Phillip Securities Group. 'The exit strategy has been on the table for these foreign investors since the very beginning because they know these aren’t real strategic investments'.

Hit the link below to access the complete Bloomberg article:

Goldman Said to Seek ICBC Exit With $1.1 Billion Sale

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