Royal Bank of Scotland has announced it could be set to sell its shareholding in the Spanish bank, Santander Central Hispano.
The money from the sale could then be used to fund its investment in the Bank of China.
RBS is currently considering the purchase as much as a 20 per cent stake in BoC, in a deal which could be in the region of $4 billion (£2.1 billion).
However, China's second-biggest bank is still in negotiations with around 10 other potential foreign partners.
For 16 years RBS has owned a 2.8 per cent stake in Santander as part of a cross-shareholding deal.
The Spanish bank, however has already sold its 2.6 per cent stake in RBS, after its recent £9 billion acquisition of Abbey National last October.
According to analysts at the broker Fox Pitt Kelton, buying a stake in BoC could amount to about 50 per cent of the free cashflow generated by RBS.
"Equity investments held by RBS could be liquidated and used to purchase [the stake] and therefore no new equity is likely to be raised in a deal," they explained.
"The goodwill hit is unlikely to be high."
RBS has so far declined to comment on its potential bid for BoC.
RBS may sell Santander stake
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