Citigroup Gives Way on China Bank Bid to Salvage Deal

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00001038-citigroup-gives-way-on-china-bank-bid-to-/

After the Chinese government refused to waive regulations that limit investment banks run by overseas companies, Citigroup may have to scale back its plan to purchase a 40 per cent stake in the Guangdong Development Bank, according to a story running on Bloomberg.com.

Citigroup had hoped to be the first overseas firm to exceed China’s ownership limits. However, Stephan Rothlin, secretary general of the Center for International Business Ethics in Beijing, said “There’s real concern about losing control of the banking system and fears that the local banks have no way to compete with the more sophisticated foreign banks.”

You can read the full story at Citigroup Gives Way on China Bank Bid to Salvage Deal.