Baosteel has prompted a wave of speculation about a possible Chinese takeover bid for Rio Tinto but the issue gaining more attention is whether China could acquire a blocking stake in the mining group.

Xu Lejiang, chairman of the country’s largest steelmaker, was quoted in a Chinese business newspaper this week as saying that there was “a strong possibility” Baosteel would launch a counter-offer to BHP Billiton’s $140bn approach for Rio. On Thursday, however, he disavowed the quoted remarks.