Canadian bank drops plan for Bank of Guangzhou stake

The Bank of Nova Scotia has scrapped plans to purchase 19.99 percent of the Bank of Guangzhou, according to the Ministry of Commerce.

In a written statement, Dieter Jentsch, supervisor of international business at the Canadian bank, said the plan, proposed in September 2011, was dropped due to "changes in the bank's policies".

Jentsch did not give further details.

Bank of Guangzhou looked for international bidders to sell around 20 percent of its shares from 2010 to 2011, and planned a listing on the Shanghai Stock Exchange.

The bank published a public notice in Chongqing United Assets and Equity Exchange to transfer 19.99 percent of its shares at 4.647 billion yuan ($749.52 million) on Aug 9, 2011.

Insiders said Bank of Guangzhou was expected to go public through selling stakes to Bank of Nova Scotia.

Both banks signed a strategic co-operative agreement in September 2011.

Guangzhou International Holding Co, the biggest shareholder in Bank of Guangzhou, holds 63.84 percent.

Other major shareholders include Guangzhou Guangyong State-owned Assets Management Co and Guangzhou Guangyong Economy and Trade Co, which hold 26.16 percent and 1.89 percent respectively.

All three are State-owned companies.