BoA to Buy Stake in Chinese Bank

Bank of America Corp. has agreed to buy about 9% of the stock of China Construction Bank for $3 billion, with the option of increasing that stake in the future.CCB is majority owned by an entity of the government of China and is the country's second-largest mortgage lender. It is expected to list its shares on the Hong Kong Stock Exchange later this year, becoming the first of the so-called Big Four state-owned banks in China to gain significant public ownership. Under the agreement, Bank of America will make an initial purchase of shares for $2.5 billion and an additional $500 million at the time of the listing. Bank of America also has the right to bring its aggregate ownership as high as 19.9% over the next five and a half years. Bank of America can be found on the Web at http://www.bankofamerica.com.