The disposal of Royal Bank of Scotland’s retail and commercial interests in China has run into an unspecified hitch that could end talks with preferred bidder Standard Chartered, according to unnamed sources cited by the Financial Times.

Standard Chartered entered exclusive talks with the UK bank in July to acquire assets in China, India and Malaysia, looking for a quick deal.

But the chances of Standard Chartered buying the assets have dropped to “around three out of 10” and discussions on the mainland part of the sale are “in limbo” according to the FT.

RBS also wants a quick sale so as to focus on its new regional strategy involving wholesale clients.