State-owned Bank of China will not make its previously announced - and already once postponed - RMB2.3 billion ($337 million) investment in 20 per cent of French bank La Compagnie Financiere Edmond de Rothschild as a regulatory deadline passed without a deal, according to media reports.

A Bank of China spokesman told Reuters the bank would not extend the deadline and the plan for an investment had lapsed: "We failed to obtain approval from relevant Chinese authorities for the deal. However, we will continue to seek other forms of business cooperation with Rothschild."

This is seen as part of a move to more caution by the regulator in approving overseas investments.