Shanghai Pudong Development Bank
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Shanghai Pudong Development Bank, (SPDB), incorporated on January 9, 1993 with the approval of the People's Bank of China (August 28, 1992), is a joint-stock commercial bank with its headquarters located in Shanghai.
Shanghai Pudong Development Bank launched a 400 million A-share offer on September 23 on the Shanghai Stock Exchange. It became the first shareholding commercial bank to list with both Central Bank and China Securities Regulatory Commission’s approval since the enforcement of "Commercial Bank Law" and "Securities Law". Thus, the registered capital reached RMB2.41 billion. 320 million shares of the issue were listed on the Shanghai Stock Exchange on November 10, 1999 (stock code 600000). The objectives of SPDB are to provide services for the development of Pudong, building of Shanghai into one of the key international economic, financial and trade centers in the shortest possible time and to contribute to the national economic development and social progress.
By the end of the year 2004, the bank's total assets reached RMB455.53 billion. The outstanding balance of all deposits stood at RMB395.38 billion and outstanding loans of RMB310.9billion yuan, after-tax profits totaled RMB1930 million.
The bank has set up 24 directly subordinate branches and sub-branches in Shanghai, Beijing, Tianjing, Chongqing, Hangzhou, Nanjing, Guangzhou, Shenzhen, Kunming, Zhenzhou, Dalian, Jinan, Xian, Chengdu, Shenyang, Wuhan, Taiyuan, Changsha, Harbin, Ningbo, Suzhou, Wenzhou, Wuhu, etc., with a total of 328 business network sites.
Events in 2005
- On September 9, 2005, Citigroup, the world's largest financial services firm, expects to wrap up talks within months to raise its stake to nearly a fifth in China's Pudong Development Bank, a senior executive said. Citigroup wants to quadruple its stake in Pudong Bank to 19.9% as rivals, including HSBC Holdings Plc. and Bank of America, move to pay billions of dollars for slices of Chinese banks. If successful, the investment could cost Citigroup as much as 5 billion yuan - based on Pudong Bank's public share price - though foreign investors often secure a steep discount. It would expand its footprint in China's commercial stronghold of Shanghai, where Pudong Bank is based. Citigroup is looking to increase its presence in a market with $1.5 trillion in savings that is set to open wider to foreigners by the end of 2006, in line with commitments Beijing gave when it joined the World Trade Organization in 2001. The world's leading financial giant paid $72 million in January 2003 for 4.62% of Pudong Bank, the domestic bourse's third-largest bank by market capitalization.
China has made banking reform a priority, because it fears the sector's problems could jeopardize economic stability. It is urging banks, big and small, to find foreign investors and seek listings. Citigroup, which became the world's most valuable financial services firm through a series of big acquisitions, had been viewed as a potential player in any foreign investments in China. But it did not take an expected plunge with state-backed China Construction Bank and, watched as rival Bank of America, agreed to pay $3 billion for 9% of the Chinese lender. Citigroup has made significant investments elsewhere in Asia, with a $2.7 billion purchase of KorAm Bank in South Korea.
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