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China bank share sales caught in fund scam

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Pudong Bank and Bank of Shanghai offerings not expected until year-end

Investigations related to the pension fund scandal in Shanghai have delayed the initial public offering plans of Shanghai Pudong Development Bank and Bank of Shanghai, sources said.

'The municipal government has very close relations with Pudong Bank and Bank of Shanghai, so both banks are under investigation,' a source said.

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Possible management changes at both banks were under discussion, the sources said.

Pudong Bank president Fu Jianhua, who took control in the middle of last year, had previously been the chairman of Bank of Shanghai.

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Bank of Shanghai declined to comment, while Shen Si, the secretary of the board of directors at Pudong Bank, could not be reached for comment.

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