The Royal Bank of Scotland (RBS) Group shed its 4.26% equity stake in Bank of China on 14 January for a net consideration of GBP1.6bn.

RBS said the stake totaled some10.8 billion shares, at a price of 1.71 Hong Kong dollars per share, and was "part of an ongoing strategic review of the Group's businesses announced in October".

In a statement it said: "After taking account of tax and the effects of currency hedging, the impact of this disposal on the Group's capital ratios is expected to be broadly neutral."

The sale comes a few months after the UK Government took a GBP20bn (58%) stake in RBS following recent sub-prime write-offs and concerns about its solvency.

RBS affirmed it will continue to operate its network of branches across China in the areas of global banking and markets, global transaction services, wealth management, and retail and commercial banking.

Other groups who have sold stakes in Chinese banks recently include Bank of America, UBS and Hong Kong billionaire Li Ka-shing.

Shares in Bank of China had closed on Tuesday at HK$1.85. On Wednesday 14 January the shares were up 3.8% at HK$1.92.