By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2008-03-04 17:52

Shanghai Pudong Development Bank (SPDB), one of the country's leading joint stock banks, plans to negotiate with Citigroup to increase its stake in the Chinese lender, SPDB chairman told a China Daily reporter today in Beijing.

SPDB chairman Ji Xiaohui, in a discussion at the 2008 Chinese People's Political Consultative Conference (CPPCC), said SPDB's Citigroup offer should be in line with regulations on private placement set by the China Securities Regulatory Commission.

Media reports said Citigroup, which owns less than five percent of SPDB, would increase its stake to 19.9 percent, the maximum allowed under Chinese regulations.

Ji added that the bank will continue with its 40-billion-yuan ($5.63 billion) refinancing plan. He is confident that the shareholders will approve the plan at their next meeting.

The refinancing will ensure adequate capital in three years and that SPDB will not refinance on a large scale in three years, according to Ji.

In addition, the chairman also denied media reports of a possible SPDB takeover of Bank of Shanghai. SPDB has no plans to acquire the bank, Ji said.