BOC may delay Rothschild deal

Bank of China may have to delay its planned US$342 million investment in La Compagnie Financiere Edmond De Rothschild due to a lack of regulatory approval, Bloomberg reported, citing people familiar with the matter. China’s banking regulator has yet to approve the bank’s application, despite the approaching December 31 deadline, and this may force Bank of China to complete the purchase of a 20% stake in the Paris-based fund manager in the first quarter of 2009. The delay is seen as a sign that the Chinese government is taking a tougher stance on investments in foreign financial firms, as such investments have led to about US$13 billion in paper losses over the past year.