Citigroup has agreed to sell its 20% shareholding in China Guangfa Bank to China Life Insurance for $3 billion, fine-tuning its business in China as the cost of holding stakes in other banks grows.
After a decade-long investment, Citi is selling its Guangfa stake for Rmb6.39 a share, or a total of Rmb19.684 billion, according to a stock exchange filing by China Life on Monday.
The cash deal comes as banks globally reassess their equity holdings in the light of new capital rules, which are making it more expensive for banks to own minority stakes in other banks.
But Basel III...
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