Shandong Electric Power Corp has transferred its entire 8.15 pct stake in Huaxia Bank to parent State Grid Corp, one of China's two state-owned power transmission firms, Huaxia Bank said.

Following the stake transfer, the State Grid will replace Shandong Electric Power as the second-largest shareholder in the bank, Huaxia Bank said.

The deal is subject to approval by the China Banking Regulatory Commission, Huaxia said.

Currently, Shougang Group, the parent of Beijing Shougang Co Ltd, is the largest shareholder in Huaxia Bank with a 10.19 pct stake. Deutsche Bank AG and unit Deutsche Bank Luxembourg SA hold a combined 9.9 pct but are treated as separate shareholders by Huaxia.

Huaxia Bank recently posted a first-half net profit of 1.01 bln yuan, up 35.51 pct year-on-year.