It has been announced by Temasek, the Singapore state investor, that in the first three months of this year for a large loss, the investment company sold its stake in Bank of America.

Prior to the credit crunch, an investment was made by the group in Merrill Lynch before Bank of America took it over last year.

As of now, the state-owned investor is now concentrating on investments in Latin America and Asia specifically.

Song Seng Wun at CIMB Research said, “It seems they feel the China growth story is better than the 'green shoots' of recovery in the US.”

The falls in financial stocks has hit Temasek adversely.

Between the months of March and November previous year, its investment portfolio dropped by 31%.

A year before, Bank of America posted encored first quarter results with revenue increasing to $4.1bn ($2.7bn) from $1.2bn.

However to cover credit losses the US bank set aside $13.4bn. It has even received from the US government billions of dollars in aid.