Citigroup Inc looks to boost Chinese presence

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Economy
Written by Roberta Murray   
Friday, 05 February 2010

Citigroup looks east with high delegation meeting.

 

Citigroup Inc (NYSE:C) continues its diplomatic charm offensive in China as the bank looks to cement its small hold in the Chinese market.

The Chinese Vice Premier, Wang Qishan met with Citigroup Inc's Chief Executive Officer, Vikram Pandit in Beijing earlier today.

It is reported that Qishan and Pandit exchanged views on current international financial situation, reform in financial supervision and regulation, and a healthy development of the banking industry.

Citigroup launched domestically incorporated Chinese unit, Citibank (China) Co. Ltd, in April 2007, becoming one of the first foreign banks in China able to do savings business from local customers.

Citigroup Inc is seeking a Chinese partner to set up a local securities joint venture, the official Shanghai Securities News reported on Friday.

In an interview published by the Chinese newspaper, Pandit said that it would take time and effort to find a long-term venture partner in China and that Citigroup was actively studying the matter.

Pandit said that the bank would continue to expand its presence in China, reflecting the banking broader commitment to growth in emerging markets.

"There is no doubt that China is critically important to Citi and our long-term growth ambitions, and it still remains a priority market for us," Pandit told China Daily in Beijing.

The remarks came after the bank said yesterday it got the regulatory approval for a new branch in Guiyang, Guizhou province.

The new branch is expected to open in the first half of this year and would expand Citi's network in the country to 10 cities.

"We are committed to pursuing growth across multiple lines of business in China, and the new branch reflects our intent to expand in the country this year and beyond," said Pandit.

Apart from the retail banking franchise, the bank is also exploring ways to expand its presence in the securities market, he said.

"We are actively looking for a local partner to develop our securities business arm in the country," he said, without elaborating on prospective partnerships with local brokerages.

Stephen Bird, chief executive officer of Citi Asia-Pacific, said that the bank would continue its investments in China despite the difficult global environment.

 
 
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