Hua Xia Bank may sell RMB 3.91 bln shares to Deutsche Bank

China's Hua Xia Bank Co.<600015>, a Beijing-based lender, intends to sell RMB 3.91 billion (US$553 million) of additional shares to Germany's largest bank, Deutsche Bank AG, which is Huaxia's fourth largest shareholder.

The deal still needs approval from the Chinese bank's shareholders, and Deutsche Bank's plan to purchase the additional shares is still subject to approval from Chinese regulator, the bank said in a statement to the Shanghai Stock Exchange.

The deal is part of the bank's plan to sell a combined RMB 11.56 billion worth of equity to three shareholders to expand its capital base. Besides the sale, Huaxia plans to sell RMB 3.94 billion of shares to Shougang Corp, and RMB 3.71 billion of shares to China State Grid Corp.

Shougang holds 10.2% stake in Huaxia, the largest shareholder of the bank, while State Grid holds 8.15%, and Deutsche Bank holds 7% under its own name, and 2.88% through a connected company.