Bank of China has set an extended March 31 deadline to complete its proposed €236 million ($326.9 million) purchase of a 20 per cent stake in French private bank La Compagnie Financiere Edmond de Rothschild, according to the Wall Street Journal.

Last week, the fate of the deal, first announced in mid-September, was thrown into question after the original New Year's Eve deadline passed without a word from Chinese authorities, who must sign it off. It comes amid concerns that Chinese officials have become wary of Western investments amid falling equity values.

A person close to the talks was quoted by the WSJ as saying that both sides agreed to give the regulators another three months to block or approve the investment.

A few weeks ago, Bank of China's spokesman, Wang Zhaowen, said the China Banking Regulatory Commission might be reluctant to approve overseas investments by Chinese companies due to global financial volatility.

In September, the French private banking group, known as LCFR, said it would acquire existing shares from the French company's shareholders and subscribe to newly issued shares.

A year ago, Chinese companies, rich with cash, appeared eager to purchase assets overseas in a bid to grow their businesses globally. Losses on those investments in the stock market declines this year, however, have cooled enthusiasm and constrained deal-making.

For Bank of China, the country's fourth-biggest bank by assets, a deal with Rothschild could provide expertise in asset management as well as distribution in
Europe, while the French firm would be better positioned to access Asian investors.

Late last November, Bank of China won regulatory clearance to open a private banking business in

Switzerland.