Citigroup to Take 5 Percent of Shanghai Pudong Bank

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Last updated at: (Beijing Time) Friday, January 03, 2003

Citigroup to Take 5 Percent of Shanghai Pudong Bank

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Citigroup has invested 600 million yuan (72 million US dollars) to buy a five-percent stake in Shanghai Pudong Development Bank (SPDB), becoming the first foreign shareholder of the ninth largest commercial bank of China.

SPDB and Citigroup jointly made the announcement Thursday in Shanghai.

Citigroup follows HSBC Holdings, World Bank and Asia Development Bank as foreign institutions investing in Chinese banks since China joined the World Trade Organization more than a year ago.

After two years of efforts, the deal is more like a strategic partnership than a simple acquisition or investment, according to both leaders of the two banks.

Citibank, under Citigroup, and SPDB will jointly develop the emerging credit card market in China and a credit card firm co-managed by both banks is expected to be established in the near future.

Citigroup's Corporate and Investment Bank Chief for Asia Stephen H. Long said China is a vital market for Citigroup's global development strategy and it expects to expand its business by combining its international network and financial products with the Chinese local resources.

Board Chairman of SPDB Zhang Guangsheng said the next four years would be crucial for Chinese banks under China's WTO commitments. He said the cooperation would promote Chinese banks' globalization and expand business.

Established in 1993, SPDB has branches across China and boasts of total assets of more than 30 billion US dollars.

Citibank has four branches and two representative offices in China and its Shanghai Office was opened in 1902.

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