US lender pushes China expansion

Bank of America's decision to sell its remaining shares in China's second-largest bank does not appear to have damaged the United States bank's plans to expand its own business on the mainland.

Bank of America Merrill Lynch, the global banking and markets arm of Bank of America, is looking to build up its suite of mainland trade and supply chain finance products.

"Expanding our supply chain finance platform with innovative solutions and broader geographic reach is a critical element of our strategic goal of better connecting with our clients in China," said Cathy Dou, Bank of America Merrill Lynch's head of global transaction services in China.

Bank of America last week launched the sale of its remaining 2 billion H shares in China Construction Bank, looking to book a pre-tax gain of about US$750 million in the third quarter.

A significant improvement in the growth of mainland exports to developed economies was seen in July, with customs data showing exports to the US jumped by 5.3 per cent in July, compared with a 5.4 per cent decline in June. Exports to the European Union rose 2.8 per cent in July after falling 7.8 per cent in June.

Despite a slowdown in the mainland's economic growth, trade volume would still increase, said Liao Qiang, a senior director at Standard & Poor's,