Bank deals under pressure

Foreign investment in the finance sector is running into trouble, with a number of deals pairing overseas firms with troubled domestic banks and brokerages being delayed. Final approval for the purchase by UBS of a 20% stake in Beijing Securities has been postponed for several months, the Financial Times reported. The Beijing government, which owns the brokerage, is stalling over the Swiss bank’s detailed provisions. A decision on whether Citigroup or Soci�t� G�n�rale will take over Guangdong Development Bank is also on hold. Citigroup was thought to be leading the bidding war, but its offer of taking 40% as part of a consortium buying 85% of the bank goes beyond China’s cap of 25% stakes for overseas investors in banks. The China Banking Regulatory Commission has asked leading bankers to help convince critics Beijing is not selling shares in banking concerns cheaply, the South China Morning Post reported.