CHINA LIFE REACHES DEAL WITH CITIGROUP ON GDG INVESTMENT

China Life has reached an agreement with US-based investment bank Citigroup and state-owned electricity generator China Guodian Corp in a renewed effort to obtain a stake in debt-ridden Guangdong Development bank, according to state media reports. Securities Times confirmed an earlier Dow Jones report ( ID Asia , May 26) that Citigroup was putting together a newly structured offer after a previous $2.93bn bid for an 85% stake fell foul of local regulations on ownership. The authorities insisted that bidders for the bank comply with a 20% cap on stakes in Chinese banks held by a single foreign financial institution.