Shanghai Pudong Development Bank has announced that Citigroup's stake will fall from 4.617% to 4.203% as part of the non-tradable share reform scheme, the Wall Street Journal reported. The surrendered shares will go to minority investors as compensation for any depressing effect the conversion of non-tradable to tradable shares may have on the market. The move comes only days after SPDB gave Citigroup permission to boost its stake in the bank to the maximum 19.9% permitted under Chinese law. However, state-owned investor Shanghai International Group revealed in a filing with the Shanghai Stock Exchange that it had signed agreements with more than 20 SPDB shareholders to become the bank's largest investor. It will have a combined 33.9% stake once the transactions are completed.