TOKYO (Dow Jones) - Bank of America Corp. has signed a memorandum of understanding with China Construction Bank to buy a 5% stake in the Chinese lender, while Singapore government investment arm Temasek Holdings is in talks to acquire a similar stake, according to a published report Monday.

The Economist magazine said it had learned that BofA (BAC) is negotiating the purchase of around 5% for $1.5 billion to $2 billion, although it did not identify its sources, AFX-Asia reported. The unidentified sources said Temasek is also in advanced discussions with CCB over a similar stake.

The report said CCB is also talking to other banks and private-equity firms.

The Chinese bank, one of the country's top four lenders, is looking for strategic investors ahead of a planned international listing later this year.

The report said Kenneth Lewis, BofA's chief executive, had said he is interested in investing in a Chinese bank as part of a broader, strategic partnership that could include a credit-card joint-venture on the mainland. Dow Jones Newswires 05-22-05 2344ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.