AsianFin -- HSBC announced on Tuesday that its shareholding in the Bank of Communications (BOCOM) is set to decrease from 19.03% to approximately 16%.

This reduction in its stake is a consequence of BOCOM's private share - placement fundraising, and HSBC expects to record a loss of up to $1.6 billion as a result.

In March, four of China's largest state - owned banks, among which is BOCOM, stated their plans to raise a combined total of 520 billion yuan ($71.5 billion) from investors. These investors include the finance ministry. This fundraising initiative came after Beijing made a commitment to assist these banks in bolstering the economy.