Citibank buys 5% of Pudong Bank


  • Business
  • Friday, 03 Jan 2003

SHANGHAI: Citibank, a unit of US financial titan Citigroup Inc, will pay about 600 million yuan (US$72mil) for a 5% stake in Shanghai Pudong Development Bank in its first strategic partnership in the potentially huge China market.  

Citibank and the medium-sized Chinese lender would focus on the domestic credit card business through their alliance, said Stephen Long, chief executive officer of Citigroup Corporate and Investment Bank, Asia Pacific, at a news conference yesterday. 

He said the two banks would apply to the Chinese government to set up a separate credit card joint venture when regulations allow. 

A woman leaving a Citibank branch in Beijing Wednesday.

Citibank’s alliance with Pudong Bank is one of many Sino-foreign tie-ups in the works as foreign banks ponder alliances in China, hoping to tap a gradually opening market and US$1 trillion in personal savings. 

Citibank and Pudong Bank had agreed to an exclusive cooperation pact in which each would treat the other as its sole strategic banking partner in China, the Shanghai-based bank said in a statement published earlier in official newspapers. – Reuters  


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3
   

What do you think of this article?

It is insightful
Not in my interest

Across The Star Online