CHINA Development Bank, which funds public-works projects, denied a newspaper report that it took a stake in mining company Rio Tinto Group.

China Development bought a holding that is less than one percent, after Rio Tinto rebuffed a takeover bid from BHP Billiton Ltd, the world's largest mining company, the Daily Telegraph said on Sunday, without citing anybody.

"There is absolutely no such deal going on," said Yang Hua, the head of corporate communications at the bank, via telephone yesterday.