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.
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
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