The New York Times reported on Friday:
China Construction Bank, one of China's four main state- controlled banks, agreed Thursday to buy the Hong Kong and Macao retail banking operations of Bank of America for $1.25 billion - the first purchase by a big Chinese bank of significant operations from an American one.
American banks have been actively buying stakes in Chinese banks for more than a year, starting with Bank of America's $3 billion acquisition in June 2005 of a 9 percent stake in China Construction Bank. But Chinese institutions have been looking for their own acquisitions outside mainland China, partly as a way to generate foreign currency earnings and limit their exposure to potentially sharp moves in the future value of China's currency against the dollar.
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