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Report: Shareholder to sell stakes in Bank of Ningxia, rural bank

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Report: Shareholder to sell stakes in Bank of Ningxia, rural bank

Chinese conglomerate Macrolink Group plans to sell down its shareholdings in Bank of Ningxia Co. Ltd. and Daxinganling Rural Commercial Bank Co. Ltd. for a total of 1.80 billion yuan to comply with a regulatory requirement on a single investor's stakes in banks, Caijing reported July 4.

Macrolink is Bank of Ningxia's second-largest shareholder with a 13.53% stake, and holds 18% of Daxinganling Rural Commercial Bank. It is also the third- and second-largest shareholder of Bank of Beijing Co. Ltd. and Bank of Changsha Co. Ltd., respectively, with stakes of 8.57% and 11.11%.

In January, the then-China Banking Regulatory Commission finalized rules that limit a single investor to becoming a major shareholder of two banks, or a controlling shareholder of just one lender.

The regulator also defined a major shareholder as an investor that either holds 5% or more of a Chinese bank's total equity or holds less than a 5% stake but has significant influence of the bank's operations.

As of July 4, US$1 was equivalent to 6.63 Chinese yuan.