Citi China Chief Executive Officer Andrew Au said the transaction marks a new phase in its longstanding strategic relationship with Shanghai Pudong Development Bank.
"China remains a top priority market for Citi and in 2012 we will continue to invest in China in support of our growing client base across all lines of business," Au added.
The sale, resulting in an after-tax gain of $349m, follows after Citi recently sold its 9.85% stake in India’s HDFC, a residential mortgage lender, which fetched almost $2bn.
The total proceeds from both deals are expected to result in a gain of over $1bn.
Citi and SPDB have also inked a new strategic arrangement to cooperate in a number of areas, including utilizing Citi’s global network and credit lines in support of any future international expansion plans by SPDB, as well as technical assistance and training services.
In 2012, Citi has plans to launch a credit card business in China and also received preliminary regulatory approval to set up its new securities joint venture with Orient Securities.
Citi in China employs more than 6,000 people, has recently expanded to three new cities in China and rolled out 12 new "smart banking" consumer outlets, including one at an airport in China.
