Citigroup’s plans to join an exodus of global banks from stakes in Chinese lenders leaves the focus on HSBC, the only one with a major holding in a big bank after earlier exits by the likes of Bank of America and Goldman Sachs.
Bloomberg News reports that Citigroup is seeking buyers for its 20% stake in China Guangfa Bank after the Chinese lender scrapped plans to list in Hong Kong, people familiar with the matter said on Friday.
Earlier this month, Deutsche Bank signalled it may sell a $3.5bn stake in Huaxia Bank after saying it 'no longer considers this stake to be strategic'.
While requirements to hold extra capital against such investments have encouraged foreign lenders to sell their stakes, HSBC is yet to give any signal that it’s planning any similar move for its 19% stake in Bank of Communications Co. The lender is instead boosting its bets on China, saying that it will add 4,000 jobs in the Pearl River Delta region over the next three to four years.
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