Shanghai International Group, a state-owned investment firm, is set to become the largest shareholder in Shanghai Pudong Development Bank in what is being seen as a blow to Citigroup’s chances of controlling two Chinese banks at the same time, the Standard of Hong Kong reported. Shanghai International now has a 21.45% stake after buying a combined 16.72% stake from several other government-controlled firms. Citigroup has agreed to raise its present 4.62% share to the maximum 19.9% in return for the Chinese lender waiving its right to block the US bank’s move to buy 40-45% of Guangdong Development Bank.
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