Australia & New Zealand Banking Group (ANZ) has warned it does not want to buy any of Royal Bank of Scotland�s Chinese interest unless its retail banking licences are included in the package, as the bank�s auction of its Asian businesses nears a conclusion.

Australia & New Zealand Banking Group (ANZ) has warned it does not want to buy any of Royal Bank of Scotland's Chinese interest unless its retail banking licences are included in the package, as the bank's auction of its Asian businesses nears a conclusion.

Royal Bank is attempting to streamline as it adjusts to life under majority government control.

As part of a package of measures designed to deliver £2.5bn of efficiency savings over the next two years and free up capital, it is seeking to run down or sell a number of businesses.

However, Mike Smith, chief executive of ANZ, told the Australian Financial Review, in an article published yesterday that it would not be interested in the RBS China assets if Royal Bank went ahead with an apparent plan to split its investment and retail banking operations in China.

While Royal Bank is keen to exit several regions, it has told investors when it launched its restructuring plan in January that it regarded China as a core region.

But Smith still said that "assets in China, Indochina and south-east Asia would be a perfect fit".

Royal Bank, now 70% government-owned, is thought to be selling around 13 branches in China.

ANZ for its part is planning an aggressive push into the country targeting companies and wealthier individuals.

ANZ, Australia's fourth-largest bank, is seen as a frontrunner for the purchase of Royal Bank's Asian businesses after raising £1.2bn through a rights issue.

Royal Bank chief executive Stephen Hester has said that he expects the bank to complete the sale of its Asianbusinesses over the summer.

It includes operations and licences in India, Pakistan, Indonesia, Taiwan and several other countries.