Citibank seeks to expand as it launches dual card

Citigroup banking unit Citibank launched a dual-currency credit card in China yesterday, saying it had ambitious plans to expand in the mainland despite an intensifying battle among foreign lenders for market share.

The card was jointly issued by Citibank and Shanghai Pudong Development Bank (SPDB), of which it owns 5 per cent. The card will carry the name of both banks and can be used to withdraw cash at 300,000 outlets in China and more than 20 million around the world.

It is the fourth dual-currency card in China, after ones issued by China Merchants Bank, Industrial and Commercial Bank and, last month, Shanghai Commercial Bank jointly with HSBC Holdings, Citibank's main contender as the premier foreign bank in China.

'We are ahead of the rest of the industry in China. We have very aggressive growth plans. The economy is growing very rapidly,' Citibank chief executive Charles Prince said yesterday. He declined to say whether Citibank would take equity in other Chinese banks. China Construction Bank (CCB) is due to list in Hong Kong in the second half of this year.

Mr Prince said he was impressed by the attention Chinese regulators were paying to bank reform as this was central to the health of the economy.

Analysts said CCB would choose two foreign banks to form an underwriting consortium for the listing, with Citibank, HSBC and JP Morgan among the favourites.