Captain America to the rescue?

A $3 billion investment by Bank of America in CCB may lift sentiment, but does not solve its IPO dilemma say China watchers.

This is huge - really pleased, was the delighted response of one banker close to China Construction Bank's CCBIPO in the aftermath of Friday morning's announcement that Bank of America BOA is to buy a 9% stake in the banking giant for $3 billion.

He had reason to be thrilled. The investment is the largest-ever single investment by a foreign entity in China.

BOA has announced it is buying $2.5 billion worth of existing shares held in CCB by the holding company, central Huijin, and has committed another $500 million to acquiring shares in the IPO, scheduled for the end of the year.

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