China Everbright Bank has received regulatory approval for an 11.5 billion yuan ($1.7 billion) private share placement, the bank said yesterday, moving it closer towards its initial public offering.

The lender applied in June 2008 to sell shares publicly in Shanghai, but the plan was delayed due to a 10-month nationwide IPO suspension amid a slump in domestic stock markets.

The mid-sized bank said it got the green light from the China Banking Regulatory Commission to sell stakes to eight Chinese state firms, including Shanghai Chengtou Holdings Co, Guangdong Expressway Development Co, Baosteel Group, China Reinsurance Group and Shenergy Group.