Bank of China (BoC) said it will extend the deadline for a proposed purchase of a stake in a French private bank to March 31 after failing to receive Chinese government approval by the initial deadline of December 31, the Wall Street Journal reported. BoC announced a deal to buy 20% of La Compagnie Financiere Edmond de Rothschild in September, but officials in Beijing are reportedly concerned about overseas investments in an unsettled economic climate. In December, Lou Jiwei, the head of sovereign wealth fund China Investment Corp, said he would halt investments in Western financial institutions. BoC hopes the Rothschild stake will strengthen its position in Europe while providing asset management expertise.
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