Citibank China has addressed recent misleading statements circulating on social media about its total exit from the mainland market. The bank clarified on Tuesday that these reports were false and overstated. Citibank's parent company, Citigroup, confirmed that the bank's strategy involves a gradual phasing out of its consumer banking division in China, but this does not equate to a complete withdrawal from the market.
This speculation was triggered by Citibank China's decision to sell its personal wealth management business, which manages $3.6 billion of client assets across 11 cities, to HSBC China on October 9. Despite this move, the bank reassured that it will continue to expand its corporate and institutional client services, which remain integral to its operations in China.
These developments align with Citigroup's global strategy announced in April 2021. This strategy involves a transformation of its individual banking operations and withdrawal from 14 markets worldwide, including China's consumer banking sector. However, it is important to note that Citigroup is only reducing its consumer banking operations in mainland China and not exiting the market entirely.
Citigroup's commitment to development within the mainland Chinese market remains strong despite ongoing adjustments to its global operations. The company serves about 70% of Fortune 500 companies, over 300 leading Chinese firms, and several emerging medium-sized enterprises through Citibank China. Established in 2007, Citibank China also operates a financing information services subsidiary and employs around 7,500 staff across 12 Chinese cities.
Citigroup first entered the Chinese market in 1902 and continues to play a pivotal role in the country's financial landscape. The bank's corporate and institutional client services remain unaffected by the strategic changes and continue to be an essential part of Citigroup's presence in mainland China.
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