Temasek sells off bank stakes

SINGAPOREAN investment firm Temasek is selling significant stakes in two of China’s biggest banks to raise up to $3.6bn (£2.2bn).

The state-backed firm is selling a $2.4bn stake it holds in Bank of China and a $1.2bn holding in China Construction Bank to trim its exposure to the financial sector.

The development comes as Moody’s Investors Services yesterday warned that China may have underplayed the levels of debt held by local governments by $541bn. China could now have a hole in its finances that could have an impact on its banks.