BofA plans to sell 9% stakes in CCB

Bank of America (BofA) plans to sell 9% stake in China Construction Bank (CCB)<601939><939>, the second largest bank in China, in a bid to raise capital to shore up its balance sheet amid credit crunch.

Meanwhile, BofA is seeking to purchase more shares in the Chinese bank at prices lower than the market rate, through using the options it holds. The move is aimed to keep the cordial relations with CCB by not selling too many stakes.

The exact stakes BofA would buy from CCB remains unknown, but the U.S. bank may not exercise its right to raise its holdings to 19%.

In addition, it's also unclear if the bank would sell its shares to the open market, or sell its block to a strategic investor or even sell its shares back to the government.