Royal Bank of Scotland, the state-controlled UK lender, is discussing selling its £2bn ($3bn) stake in Bank of China amid a growing scramble by foreign investors in mainland banks to cash in their lucrative holdings.
Stephen Hester, who took over as RBS chief executive after the bank was bailed out by the UK government last year, visited Beijing this week where he met BoC executives and regulators, and flagged a possible divestment of its 4.3 per cent stake.
“No final decision has been made,” said one person familiar with the situation. “But the Chinese are now aware of RBS' thinking on the issue. Selling the stake is among the options.” RBS declined to comment.