Citigroup agrees to sell 20% stake in China Guangfa Bank

Citigroup has agreed to sell its 20% stake in China Guangfa Bank to China Life Insurance for RMB19.68 billion (US$3 billion), The Wall Street Journal reported, citing a statement from the New York-based bank. Citigroup had originally fought for the share based on the possibility of full ownership in 2006 before regulators introduced a 20% cap for a single foreign owner in China’s banking sector. US banks acquired more than US$14 billion in Chinese bank stakes between 2002 and 2010, with most then profitably jettisoning their shares after the financial crisis hit, including Bank of America, Goldman and, most recently, Deutsche Bank.