Citic in talks with Bear Stearns

China's banking regulator confirmed on Tuesday that Citic Group has made a bid for a stake in US financial firm Bear Stearns, the Wall Street Journal reported. Under Citic's proposed, deal the two companies would exchange shares and launch a joint venture to exploit the two companies' respective access to the Chinese and American markets. Citic, which is backed by the Chinese government, might be concerned about the losses taken after China invested in US firm Blackstone earlier this year as well as the recent downward trend of Bear Stearns' shares. Chang Zhenming Citic's vice chairman and president, said the companies have made no progress toward reaching an agreement and declined to comment about the timing of the deal.