China's three largest banks attracted big strategic investments from western financial giants at the time of their initial public offerings. Those investors are now under pressure to shed their stakes as the global financial crisis hits the financial sector. UBS, for example, has sold its stake in Bank of China to a group of institutional investors.

BoA sold more than 5.62 billion shares, or nearly 13 per cent of its holding in Construction Bank, at HK$3.92 apiece, according to a term sheet obtained by Reuters and a person familiar with the matter, in a deal that had been widely anticipated by the market.

Bank of America realises a profit of about $1.13 billion on the stake sale, based on Construction Bank's IPO price. It sold the stake at a 12 per cent discount to the stock's Tuesday close.

Bank of America had planned and then cancelled a similar sale last month, sources familiar with the situation said. The stake sold represents about 2.5 per cent in Construction Bank, and will leave Bank of America with a 16.6 per cent holding in the Beijing-controlled lender.