Regulator scotches reports of GDB acquisition

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.