China to cut bank loans to local govts-regulator
A resident rides a bicycle past a branch of Industrial and Commercial Bank of China in Xiangfan, Hubei province October 29, 2009. Booming loan growth in the first half of the year helped boost quarterly profit at Industrial & Commercial Bank of China (ICBC) , the world's most valuable bank, but a slump in the third quarter and continued tight margins could squeeze results heading into 2010. REUTERS

Goldman Sachs International sold HK$3.73 billion ($478.7 million) worth of shares in Industrial and Commercial Bank of China Ltd, the world's largest lender by market value, in what it said was a transaction to help a client hedge its position in the bank.

Goldman sold 638.06 million Hong Kong-traded shares of ICBC (1398.HK) at a price of HK$5.84 each, a 2.5 percent discount to Monday's closing price of HK$5.99, according to a term sheet of the transaction sent to investors late on Monday.

A source familiar with the deal told Reuters on Monday that Goldman acted on behalf of American Express (AXP.N).

American Express held 638.06 million shares in ICBC, equivalent to a 0.74 percent stake, at the end of December, according to Thomson Reuters data.

The term sheet said Goldman was acting on behalf of a client to facilitate a hedging transaction, without disclosing the name of the client. The U.S. firm was the sole bookrunner for the deal.

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