Shanghai-listed Shenzhen Development Bank suspended its A shares for one day yesterday, seemingly confirming rumours that a foreign bank would take a stake in the Shenzhen-based lender. The mainland Economic Observer on Monday reported HSBC, JPMorgan Chase and American private equity fund Newbridge Capital were in talks with Shenzhen Development Bank to buy up to 17.6 per cent of the Chinese bank, citing an unnamed official from the People's Bank of China. But Shenzhen Development Bank would choose only one strategic investor out of the three suitors, the report said. A spokesman for Shenzhen Development Bank said the bank would make an announcement today. A JPMorgan spokesman declined to comment. AFX-Asia reported that HSBC had rejected the rumour and said it would not take a stake in Shenzhen Development Bank while Newbridge said it had no knowledge of such a deal. However, the talk was enough to push share prices of China's three other Shanghai-listed banks higher yesterday. Minsheng Bank rose 3.55 per cent to close at 13.13 yuan per share, China Merchants Bank rose 2.43 per cent to close at 10.95 yuan and Pudong Development Bank rose 2.15 per cent to close at 17.58 yuan. Even Shenzhen-listed Shaanxi International Trust surged to the 10 per cent daily limit. A Shenying & Wanguo Securities analyst said the market had been hearing rumours that Shenzhen Development Bank was planning to sell a 10 per cent to 14 per cent stake to JPMorgan Chase. Punters bought into financial institutions yesterday on hopes that the other banks would also sell stakes to foreign banks. A number of mainland banks have been in talks with foreign investors to sell stakes in exchange for help building up their competitiveness before China's financial sector is completely opened to foreign competition.