China government fund buys small stake in ANZ

SYDNEY, Dec 20 (Reuters) - A Chinese government fund has bought a less than 5 percent stake in Australia and New Zealand Banking Group Ltd (ANZ.AX) (ANZ), a spokesman for the lender said on Thursday.

The spokesman declined to comment on the exact size of the stake and the price at which the purchase was made, but added it was a portfolio investment rather than a strategic stake.

The investment was made in the last month.

One industry source said the stake was around 1 percent, which at the current share price was valued at A$504 million (A$434 million).

Shares in ANZ, which has a market value of A$50.4 billion ($43.4 billion), was trading up 0.2 percent at A$26.91 while the broader market .AXJO was down 0.4 percent.

ANZ, Australia's third-biggest lender by assets, has been building stakes in Asia banks as its diversifies into one of the fastest growing regions in the world.

The Chinese stake buy in ANZ comes at time when several sovereign funds are investing in global banks, which are writing off billions of dollars due to their exposure to distressed subprime loans.

On Wednesday, China agreed to pump $5 billion into Morgan Stanley (MS.N) for a stake of up to 9.9 percent, after the U.S. investment bank reported a big fourth-quarter loss. ($1=A$1.16) (Reporting by Denny Thomas; Editing by James Thornhill)