The Bank of East Asia has sold a majority holding in its US business to the Industrial and Commercial Bank of China.

The Bank of East Asia has sold a majority holding in its US business to the Industrial and Commercial Bank of China. ICBC is the world's largest bank by market value, with assets of around US$ 2 trillion.

It marks the first time a Chinese lender has taken a controlling stake in an American bank. The acquistion underlines the growing relationship and financial development between China and the US. 

Representatives of the senior managements of both banks attended a ceremony in Beijing last week to mark the final completion of the transaction, which was been approved by the regulators on both sides of the Atlantic.

With the final completion of this transaction, BEA USA ceases to be a subsidiary of Hong Kong-listed BEA and will be renamed ICBC (USA) NationalAssociation.

BEA will remain a shareholder and will continue to operate its wholesale banking business through its federal branches in New York and Los Angeles, said BEA in a statement.

BEA is the largest independent local bank in Hong Kong, with total consolidated assets of HK$611.4 billion (US$78.7 billion) as of 31st December, 2011.