Citibank (NYSE:C) has received permission from the proper regulatory authorities in China to issue credit cards. This is the first western bank to get approval to offer credit cards.
Citi executive Stephen Bird issued a statement on this news: “This approval represents a significant milestone in the continued expansion of Citi’s business in China, a priority market for Citi. Our business in China continues to perform strongly across institutional and consumer lines, and our ability to introduce a credit and commercial card proposition adds to our healthy growth momentum in this key market.”
40 foreign banks make up only 2% of China’s market share. One reason for this situation is the very restrictive regulatory environment. In addition, Chinese consumers are reluctant to do business with foreign banks.
However, China has been threatened with an economic slowdown. As a result, we should expect more tools such as credit cards to stimulate consumer spending.
Here’s how shares of Citigroup recently traded:
Citigroup, Inc. (NYSE:C): C shares recently traded at $33.54,. They have traded in a 52-week range of $21.40 to $49.60. Volume today was 78,793 shares versus a 3-month average volume of 52,655,800 shares. The company’s trailing P/E is 9.08, while trailing earnings are $3.69 per share.