Will Temasek take another bite at the Chinese Banks?

Once bitten perhaps not so twice shy. Temasek and a Goldman Sachs fund are reportedly looking at buying Bank of America’s $8.5 billion stake in Construction Bank of China.

Hopu Investment Management Co., a $2.5 billion fund run by Goldman Sachs backed by Temasek, was said to have been approached by investment banks offering shares of China Construction Bank in a report by Bloomberg.

Hopu hasn’t expressed commitment yet, and talks were said to be ongoing. Ivan Li, a Hong Kong-based analyst at Kim Eng Securities Ltd., said, “The stock rally has dragged out the price haggling process and investors will probably look for a minimum 10 percent discount to ensure it’s a profitable investment.”

Founded in 2007, Hopu was reported to have bought approximately 30 percent of a $2.3 billion Bank of China stake sold by Royal Bank of Scotland in January. The fund raised $2.5 billion from overseas investors in 2008.