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Guangdong bank shares to be auctioned

(Reuters)
Updated: 2006-07-27 14:41

A local government stake in China's Guangdong Development Bank will be auctioned on Aug. 3, the Securities Times said on Thursday.

Just over 3.6 million shares held by the Shantou city government would be auctioned at an opening price of 1.26 yuan per share, the paper said, citing a statement by the auction agent.

Two rival consortia, led by Citigroup Inc. and Societe Generale, are bidding for the mid-sized Chinese bank.

The sale is being watched as a test of China's willingness to restructure banks and allow foreign investment in the sector.