China Banking's Great Wall

Newbridge Capital's plan to run a Chinese bank comes undone -- and the U.S. firm is doing the unheard-of by taking the case to court

It was the deal that would change Chinese banking forever. When U.S.-based Newbridge Capital Inc. agreed last October to buy a controlling interest in Shenzhen Development Bank Co. (SDB ), Chinese officials were so enthusiastic that they even allowed Newbridge to install its own management team before final details had been ironed out. At last, Chinese regulators and bankers seemed ready to allow a real commercial bank to flourish under foreign control.

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