index tenCHART: The History of Bank of America’s Investment in China’s Second Biggest Bank


This is a article.


In less than a decade, Bank of America’s investment in China Construction Bank produced pre-tax gains of $16 billion.

There was a time not so very long ago when Bank of America (NYSE:BAC) owned just under 20% of the world’s second biggest bank by assets, the $2.8 trillion China Construction Bank.

The moment was brief, spanning from Bank of America’s initial investment in 2005 until it finished unloading the position in 2013. But to say the deal was lucrative wouldn’t do the facts justice. Over the course of nine years, Bank of America’s $6.3 billion investment generated pre-tax gains of $16 billion.

It’s a shame that Bank of America no longer holds this position. Despite the country’s current problems, China is the economic frontier of the present and the future. And aside from the behemoth Industrial and Commercial Bank of China, there is no better financial company through which to gain exposure to the Asian country’s emergence than China Construction Bank.

But even if the post-financial-crisis regulations had allowed Bank of America to hold onto its stake, which is a dubious assumption at best, the capital it raised from the sale helped the North Carolina-based lender emerge from the financial crisis as an independent, though hobbled, company.

With this in mind, the slideshow below traces the history of Bank of America’s investment in China Construction Bank, from its inception in 2005 to its conclusion in 2013.

The next billion-dollar iSecret
The world’s biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn’t miss a beat: There’s a small company that’s powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early-in-the-know investors! To be one of them, just click here.

America in 2017: Warren Buffett’s Ignored Warning

Warren Buffett is perhaps the greatest investor of all time, so when the billionaire issues a warning, it pays to listen.

But unfortunately, nearly 4 in 5 Americans are ignoring Buffett’s words of widsom. Click here to learn more.

Piggybankblog Courtroom Bailiff: “All rise! .The Honorable Judge John Wright has left the Courtroom of Public Opinion!”

donate small picture three