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.
(Xinhua News Agency October 13, 2006)