A bid by General Motors (GM) to buy about a third of a truck and mini-van maker in Guangxi province through the planned B-share flotation of the Chinese firm has been thwarted, with Beijing rejecting the listing proposal. However, GM, the world's largest car-maker, will continue its partnership with Liuzhou Wuling Motors. GM spokesman Alan Adler said co-operation with the truck-maker would continue, but it would not be carried out through a B-share initial public offering (IPO). He declined to give alternatives. It had aimed to acquire a 34 per cent stake by buying B shares, traded in foreign currencies. GM last year signed a deal with Liuzhou Wuling that would allow the United States car-maker to acquire 34 per cent stake in the truck-maker through its planned B-share flotation. Wuling's parent would keep a 12 per cent stake. Shanghai Automotive Industry, GM's Shanghai partner, would take a major stake of 50.1 per cent in the Guangxi-based truck-maker. The flotation had been expected to take place in the first quarter of this year. A Liuzhou Wuling spokesman said he believed China's market watchdog - the China Securities Regulatory Commission (CSRC) - turned down the flotation because it regarded GM's stake in the prospective B-share company as 'too large'. Ford Motor first bought about 20 per cent in Jiangling Motors, a truck-maker based in Jiangxi, and recently raised that to 29.96 per cent. A Wuling spokesman said the three partners were negotiating on a new form of co-operation. Mr Adler declined to comment on the concerns over GM's holding in Liuzhou Wuling. But he said the CSRC reckoned the B-share IPO was not the best option amid the current market conditions. 'The CSRC basically suggested to us that this is not the best way to go.' He did not elaborate. On February 28, Beijing opened the B-share market for domestic investors with foreign currency deposits. Prices of B shares have surged since then. By Monday's close, Shanghai B shares had shot up 121 per cent while Shenzhen's soared 198 per cent since February 28. Wuling is the No 3 mini-commercial vehicle producer in the country and has 25 per cent of the domestic market. The planned participation of the GM and Shanghai Automotive in Wuling is a major restructuring aimed to enhance its capacity. The move is also in line with Beijing's plan to speed up the restructuring of mainland enterprises as the country prepares to enter the World Trade Organisation. China has been promoting foreign investment in the mainland's backward western provinces, particularly for the purpose of industrial privatisation. It is believed GM, which has a US$1.5 billion joint venture in Shanghai, hopes a deal with Liuzhou Wuling will help it expand its share of the China market.