British bank HSBC Holdings said on Wednesday it has agreed to sell its 8 percent stake in Bank of Shanghai to the Spanish bank Banco Santander.

HSBC's 8 percent shareholding in BoS was accounted for as an available-for-sale asset with a fair value of HK$3.62 billion (US$592 million) on the balance sheet on Sept 30, 2013.

Peter Wong, chief executive officer of HSBC Asia Pacific, said: "This transaction is another step as we continue to execute the group's strategy. "

"With such a large and important market as China, our ability to focus on core businesses becomes much more vital. Our priorities going forward will emphasize the growth of our own operations in mainland China and our own partnership with Bank of Communications."

The transaction, which is subject to regulatory approval, is expected to be completed in the first half of 2014.