HKCB Bank Holding managing director and chief executive Raymond Lee has denied a report saying two major shareholders plan to sell their stakes in the bank. Mr Lee was responding to a report yesterday in the Oriental Daily News that said China Resources Enterprise and Lippo China Resources aim to offload shares to two mainland banks. Agricultural Bank of China and China Construction Bank were mentioned in the report as potential buyers. 'I do not believe there is any truth to that rumour. The story does not make much sense,' Mr Lee said. 'Our bank does not need additional capital at this point, so there is no reason why we should invite another shareholder to come in at a strategic level,' he said. 'And if you extract from that rumour the possibility that China Resources and Lippo are looking at divesting - I can tell you they are not.' Lippo China Resources and China Resources Enterprises are 50:50 partners in an unlisted holding company LCRE which owns 59 per cent of HKCB Bank Holdings. Separately, the China Resources Group owns another 6.3 per cent stake in the company. Each of the major shareholders has three board members, giving them control of the 10-member board of the bank. There had been no discussion at a board level of any bid to alter shareholdings, said Mr Lee. At 30 per cent, the capital adequacy ratio of HKCB Bank Holdings was the highest among all banking groups in Hong Kong, said Mr Lee, and bank management was under orders from the board to put more of that idle capital to work. 'As far as the bank's strategic outlook is concerned, our board has very clearly indicated that we have to maximise the application of our capital and we are therefore in an acquisition mode - we are looking out for potential opportunities,' said Mr Lee.