Deutsche Bank agrees to sell stake in China lender

Deutsche Bank shares rose after the German lender said it has agreed to sell its 19.99% stake in Hua Xia Bank to PICC Property and Casualty Company for up to 25.7bn yuan (£2.7bn).

The bank said the deal, which is subject to customary closing conditions and regulatory approvals, will help boost its common equity tier 1 capital ratio as of 30 September by about 30 to 40 basis points.

Co-chief executive officer John Cryan said: “As we execute on Deutsche Bank’s strategic agenda, now is the right time for us to sell this investment.”

Chief financial officer Marcus Schenck said: “We will now work with the regulatory authorities to close this transaction. Upon closing, Deutsche Bank’s capital position will be strengthened, and we will have made further progress on the execution of our strategy.”

Deutsche made its first equity investment in Hua Xia Bank in 2006.

At 0928 GMT, shares were up 1.9% to €22.61.