On Friday, Bank of Nova Scotia stated that it withdrew its proposal to purchase Bank of Guangzhou's 20% stake. The decision came after Chinese authorities' refusal to proceed with the Can$719 million equivalent to US$691.28 million contract.

In May, Scotiabank, Canada's third biggest lender by deposit and market investments warned that the Chinese authorities were reassessing its offer. The deal was originally initiated in September 2011.

Scotiabank served 19 million clients in up to 55 countries all over the world. It offered an extensive range of merchandises and services. Scotiabank owned US$754 billion worth of assets and its stocks trade on the Toronto and New York stock exchanges.

Conversely, Bank of Guangzhou was not publicly listed. It was mainly a state-owned bank. Guangzhou was approximately 120 kilometers or 75 miles northwest of Hong Kong. Its population was about 13 million.

Scotiabank reported that the latest changes in China's municipal and federal leadership prompted the authorities to reevaluate the offer.