HONG KONG, May 26 (AFP) - Foreign banks' confidence in lending to China is unlikely to receive a boost from a plan unveiled by Guangdong province to rescue its bankrupt Hong Kong investment arm, analysts said Wednesday. Banking experts said it will take time for lending to China to resume, despite the provincial government pouring cash and assets and taking debt in a bailout plan for Guangdong Enterprises (Holdings) Ltd. (GDE). "I don't think one GDE deal will make them get their confidence back," said Zuhair Khan, banking analyst at Clarion Capital. He said several banks were actively trying to sell off their China loans. Bankers, however, are still closely watching the GDE situation to gauge how safe it is to invest in China in the future, Khan said. GDE, which was incorporated in Hong Kong in 1980, was China's largest commercial enterprise outside China with interests in trading, manufacturing, property development and investment, hotels, finance and infrastructure. Guangdong's provincial government said Tuesday it will put its "most valuable" asset, a two billion US dollar project that supplies water to Hong Kong, into a scheme to raise capital to pay off creditors and restructure debt-ridden GDE. The scheme, which is yet to be approved by creditors, will involve the government injecting the water project, pouring in hundreds of millions of dollars in cash as well as take on 1.8 billion US dollars in debt to revive the investment company and pay off debts totalling 5.5 billion US dollars. Troubles at GDE surfaced after the bankruptcy of Guangdong International Trade and Investment Corporation (GITIC) which shook confidence in the Chinese financial system. GITIC's collapse sparked a credit crisis for the mainland's more than 200 investment trust companies, with many unable to obtain new loans or repay interest or principal on outstanding borrowings. In the GITIC collapse, more than 200 creditors are still waiting word from the government on how much, if any, of the 4.4 billion US dollars of debt they can recoup. A steering committee of creditors expressed dissatisfaction with the GDE proposal. Individual creditors told Hong Kong newspapers that the plan would force them to wait years for repayment of loans. But Anthony Lok, head of North Asia Banking Research for Nomura International (HK) Ltd., said the government was being generous. "This is set up in that there's absolutely no new cash injected by the creditors. The provincial government is putting assets, cash and taking debt to bail out the company, so you tell me who's putting more in there," he said. "I think the banks are being unrealistic and greedy and they're posturing," Lok said. "I always thought the banks should bear more responsibility. Banking is just investing. Where in the world is there a game that if I win, I win. But if I lose, you help me." He said banks knew the risk of investing in the China market and should not expect the government to bail them out. However, Khan said lenders were in a difficult position because of the absence of credible financial data in China. "It'll take years before there's a trustworthy system of financial reporting. Before that is in place, if the government doesn't show a certain amount of understanding towards foreign lenders, they'll stop lending," Khan said.  