China's securities regulator blocked Goldman Sachs Group Inc's plan to invest in Fuyao Group Glass Industries Co Ltd, the nation's largest windshield producer said yesterday in a statement filed to the Shanghai Stock Exchange.

The denial from the China Securities Regulatory Commission came after Fuyao's share price more than tripled since last year when the proposed deal was announced.

"The price gap between the one proposed in the deal and the one on the market has become too wide, which makes the deal a mission undesirable," said Wang Jinxiang, an analyst with the Industrial Securities Co Ltd.

GS Capital Partners Auto Glass Holdings, a unit under Goldman Sachs, had planned to buy 111.28 million shares of Fuyao for 890 million yuan (US$118.67 million), or eight yuan each share, to tap the fast developing automotive glass maker.

The proposed deal, which would allow Fuyao to introduce a strategic foreign investor and ease its debt ratio, had been approved by the Ministry of Commerce.

However, Fuyao's share price has surged to around 30 yuan in one year, much more than the eight yuan per share in the proposed deal.

Yesterday, shares of Fuyao closed at 30.5 yuan, shedding 0.62 percent from 30.69 yuan in its previous trading day.

"The denial is unlikely to cause any big trouble for Fuyao, which could raise funds in the primary or secondary market relatively easy," said Wang.

Fujian Province-based Fuyao reported its net profit jumped 45.37 percent from a year earlier to 657.18 million yuan through September, boosted by rapid growth of its core business and the retail price rise of glass products.

New York-based Goldman Sachs, the world's biggest securities firm, had also planned to buy into Guangdong Midea Electric Appliances Co, China's second biggest publicly traded appliance maker, and Shuanghui Group, the nation's largest meat processor.

Its proposed deal with Midea Electric was also rejected by CSRC in August due to the price surge of Midea Electric.