CRI听力:China Nod for Citibank Credit Cards Indicates Increasing Trade Ties with US

Citibank's approval to issue credit cards on the Chinese Mainland makes it the second foreign bank allowed to do so, following the Bank of East Asia which gained approval in 2008. Citigroup said in its announcement, published on February 6th via its official website, they estimate that the credit cards will be available within this year.

According to Wang Ling, a senior analyst with the research firm Anbound, Citibank's request to issue credit cards on the Chinese mainland came out of its desire to expand its business within the country.

"Citigroup's plan is more than just issuing credit cards on the Chinese mainland; it reflects the company's demand for an expansion of its retail business. In fact, it recently expanded its banking business in three Chinese cities. Cheque guarantee and credit cards are integral for improving its performance as a product and service provider before they really expand their retail businesses."

Citigroup launched three new corporate bank branches on the Chinese mainland last year, including one in the eastern Chinese city of Wuxi and one in Shenzhen's Luohu district. Citigroup now operates 13 branches and 46 consumer outlets on the Chinese mainland.

Wang Ling added that in order to achieve its lofty ambitions, the New York-based bank will have to innovate in the areas of marketing, service and even risk management.

"After Citibank issues credit cards on the Chinese mainland, there is an urge for innovation within the group. It should consider altering its marketing strategy to make up for the restricted sale access provided by only 46 consumer outlets."

Meanwhile, Citibank also stated that the Chinese government's consent followed preliminary regulatory approval in January 2012 for the lender to set up a joint-venture securities firm in China.

Citibank's business expansion in China is seen by many insiders as a signal for the Chinese government's resolution to open up its banking market to foreign players; a positive response towards a complaint filed by the United States within the WTO in September 2010, requesting that the Chinese government relax restrictions and establish a level playing field within the banking sector.

Wang Ling shares this optimistic view.

"China's decision to allow Citigroup to issue credit cards is an obvious signal for it's opening up of the banking sector. However, we'll have to wait and see whether big steps will be taken later. Regardless of the current pace, the move indicates the growing trade ties between China and the US and this major trend will remain unchanged for the foreseeable future."

The Chinese Foreign Ministry has announced that Vice-President Xi Jinping will kick off a visit to the U.S. on February 13 during which he is scheduled to meet U.S. President Barack Obama in Washington.

For CRI, I'm Xu Fei.