HANGZHOU City Commercial Bank, part-owned by Commonwealth Bank of Australia, had its initial public offering plan rejected for setting aside too many shares for employees, the Securities Times reported, citing a person it didn't identify.

The government is considering rules to cap ownership by workers in the nation's financial institutions to five percent, the report said. Hangzhou Bank is the fourth-largest city bank in China by assets, Bloomberg News reported. Commonwealth Bank owns 19.9 percent of the bank; the Asian Development Bank five percent.