The panel disclosed that China Life had proposed acquiring 10 per cent of Wing Hang from BNY International Financing Corp, a unit of Bank of New York, which held 20.28 per cent of Wing Hang at the time. In addition, the Fung family, the largest shareholder of Wing Hang, had proposed buying 5 per cent from BNY.

The panel decided that if the proposed acquisitions were to proceed, it would trigger an obligation on the part of the Fung family to make a general offer for Wing Hang under the Code on Takeovers and Mergers.

The Fung family's stake in the bank would increase to 28.58 per cent from 23.58 per cent if the transaction proceeded. A general offer is usually triggered at 30 per cent ownership, but the panel said the Fung family, BNY and China Life represented a 'concert party' led by the Fungs.

The panel deferred publication of its decision at the request of the parties owing to the confidential and price-sensitive nature of the matter at the time. However, the panel did not disclose whether the proposed acquisitions were still proceeding or whether they had been suspended.

A spokesman for Wing Hang declined to comment, and both Bank of New York and China Life could not be reached for comment.

In May last year, a mainland newspaper reported that China Life had approached the Fung family regarding a potential acquisition. But the bank said at the time there were no negotiations or agreements relating to intended acquisitions.

Kenny Tang Sing-hing, the head of research at Redford Securities, said he expected China Life to still be interested in acquiring a stake.

'The trend for insurers to cross-sell their products through other financial platforms is inevitable, so it's natural for them to take a stake in overseas banks,' he said, adding that prices were much cheaper now than last year.

Wing Hang closed at HK$39.95 yesterday, down 3.27 per cent. The stock rose to HK$118.40 in May last year.