SPDB keen to sell more shares to Citigroup

Citigroup will increase its shareholding in Shanghai Pudong Development Bank (SPDB) from 4.2% to the maximum permitted 19.9% in the first half of next year, the <i>South China Morning Post</i> reported. SPDB vice-president Zhang Yaolin said the bank wanted to complete the sale in order to strengthen its capital. He also confirmed reports that SPDB is considering a Hong Kong listing in addition to a plan to issue 700 million new A-shares to institutional investors by the end of the year. Some of the funds will go towards systems underpinning the lender's retail banking operations. Meanwhile, Australia and New Zealand Banking Group (ANZ) is said to be closing in on a deal to buy 19.9% of Shanghai Rural Commercial Bank for around US$500 million. ANZ bought 19.9% of Tianjin City Commercial Bank last year for US$120 million.