China Strategic says AIG may terminate Nan Shan agreement

HONG KONG, Sept 7 (Reuters) - China Strategic Holdings Ltd (0235.HK) said AIG (AIG.N) has indicated it may choose not to proceed with its agreement to sell its Taiwan unit to the company after Taiwan regulators rejected the $2.2 billion deal.

"AIG has indicated its current view that it would be in the best interests of the parties to terminate the Share Purchase Agreement," the company said in a filing with the Hong Kong stock exchange on Monday after the market close.

Shares of China Strategic dived more than 40 percent to close at HK$0.31 when trading resumed on Monday after a three day suspension during which Taiwan had rejected the deal. (Reporting by Alison Leung; Editing by Ken Wills)