An attempt by private equity operator Carlyle Group to buy a stake in a small Chinese bank has been ruled out by Beijing, the Wall Street Journal reported. Chongqing City Commercial Bank said in its annual report that a US$43 million bid by Carlyle for an 8% holding was rejected because the regulators were unhappy with the purchasing vehicle. According to rules issued in 2003, foreign investors in Chinese banks must meet a minimum capital requirement of US$10 billion. Carlyle's purchasing vehicle, Carlyle Asia Partners II LP, had capital of US$1.8 billion after completing its fundraising in 2006. Private equity firms have largely been shut out of China's financial enterprises. While foreign banks have invested a total of US$19 billion in Chinese lenders, Newbridge Capital's stake in Shenzhen Development Bank remains the only private equity investment in the sector. Last year Carlyle pulled out of a Citigroup-led consortium that ended up securing about 80% plus management control of Guangdong Development Bank.