Regulator scotches reports of GDB acquisition
(Xinhua)
Updated: 2006-10-13 17:54
China's banking regulators have moved to scotch reports that the
restructuring of the Guangdong Development Bank (GDB) has been decided.
An unnamed official with the China Banking Regulatory Commission (CBRC) said
the commission was still unable to confirm the final result of the
restructuring.
He also denied earlier media reports that Citigroup has been approved to buy
into the debt-laden bank, according to a report in Friday's China Securities
Journal.
But the CBRC official refused to release the timetable of the final result.
Chinese regulations require that any acquisition of or strategic investment
in China's commercial banks by overseas financial institutions must be ratified
by the CBRC.
A plan for GDB's restructuring was submitted to the State Council, China's
cabinet, for approval in September. Under the plan, Citigroup has offered to buy
40 to 45 percent of the shares, which exceeds the limit of 25 percent foreign
ownership of a Chinese bank.
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