Citi is eying more geographic expansion with top-end private banking services in China, indicating its commitment to the Chinese market despite the global subprime crisis crunch.
"The expansion of private banking business this year will surpass that of 2007," said Andrew Tung, global market manager for Citi Private Bank China.
Citi has more than 20 relationship managers on the mainland for private banking services.
The bank opened a private banking outlet in Guangzhou in December. It opened offices in Shanghai in March 2006 and Beijing in May 2007, with a client assets threshold of US$10 million to serve the super rich.
"In 2008, Citi in China continues to grow strongly. We have a clear strategy for long-term success here, and we remain totally committed to providing superior financial services and products that are in the best interests of our customers," said Richard Stanley, chairman of Citibank (China) Co.
Citi reported a loss of US$9.8 billion in the fourth quarter due to subprime related assets, triggering concerns about its bottom line. Stanley dismissed concerns that this may impact on its China business.
Tung said wealth management products for millionaires will focus on the qualified domestic institutional investor scheme. The China Banking Regulatory Commission said on Wednesday that QDII investment scope will be expanded to the Singapore market after Hong Kong and the United Kingdom.
Citi advises investment in agricultural commodities, emerging markets, infrastructure and energy needs, and distressed assets.
The Chinese mainland was home to 345,000 people who had a net worth of US$1 million in 2006, said a report by Capgemini SA and Merrill Lynch & Co.
(Shanghai Daily January 25, 2008)
