(Yicai Global) April 3 -- China's National Council for Social Security Fund plans to sell CNY9.3 billion (USD1.4 billion) worth of shares in Bank of Communications over the next sixth months as the commercial lender looks to reduce holdings of major investors.

The fund will sell up to 1 percent of the bank's equity over the next three months and another 1 percent over the following three, it said in a statement yesterday. The fund acquired the shares through a private issuance in 2012, and will sell them at market rates through centralized bidding or block trades beginning 15 trading days from yesterday.

The selloff is in line with the fund's asset allocation plan for business development, according to the statement.

The fund paid CNY15 billion (USD2.2 billion) for 1.9 billion mainland-listed shares and 1.4 billion Hong Kong-listed shares in the bank, at CNY4.55 (68 US cents) and HKD5.63 (72 US cents) a share. As of late last year, it was the lender's third-largest shareholder, with a combined 10.9 billion shares and a 14.7 percent stake.

Based on yesterday's mainland closing price of CNY6.28 and the Bank of Communications' net asset value per share of CNY8.6, the 2 percent stake for sale will fetch up to CNY9.3 billion at a price-to-book ratio of 0.73.

The fund, which also holds a 2.8 percent share of Agricultural Bank of China, will remain Bank of Communications' third-biggest investor after the sale.

Editor: James Boynton