Goldman Sachs has agreed a deal worth $2.3 billion to sell its shares in the Industrial and Commercial Bank of China (ICBC), it has emerged today (16 April).
The major US financier has decided to cash in on its holdings in the world's largest bank - which recently announced a 17 per cent rise in profit for the final quarter of 2011 - by finalising an agreement with Temasek Holdings.
Temasek - a state-owned Singaporean investment company that was established in 1974 and now has assets worth some $154 billion - had been eager to increase its holdings in ICBC and has now done so.
Justin Harper of IG markets told the BBC that China represents an attractive investment option at present as the country's banking industry has grow markedly in recent years and has "huge potential" for further expansion.
This deal will also provide Goldman Sachs with an injection of cash to help in the process of restructuring its business in the wake of the recession.
By Claire Archer