Almost two decades after gaining permission to conduct yuan business for local clients, foreign-funded banks are still refining their strategy in China, where the financial sector is dominated by state-owned lenders.
While Citi exited its China retail banking business, other foreign banks have continued to close branches and sub-branches, focusing instead on digitalisation, wealth management and core clients to strengthen their foothold in the market.
Deutsche Bank (China) announced the closure of its Chongqing branch last month after closing its Qingdao branch earlier this year, leaving the German lender with only four branches outside its Beijing headquarters.
HSBC Bank (China) and Standard Chartered (China) have each closed a Chongqing sub-branch over the past 12 months. HSBC also shut down a Beijing sub-branch this year.