Citigroup Follows HSBC Lead Seeking Retail Status in China
Citigroup has followed HSBC and Standard Chartered's lead to incorporate locally.
The move is to meet government requirements for doing local-currency retail banking.
Soon Citigroup can inundate Chinese mail boxes with promises of credit card debt and ungodly interest rates on loans that can never be paid back.
But, the Chinese postal system will be happy, no doubt, to have such a customer to keep its post deliverers happy.
I wonder if Citigroup and the other banks have learned any lessons other than how to soak people for all they are worth.
But, I guess it's not their job to teach individual fiscal responsbility, is it?
It is kind of like of gambling joing attaching a notice to their advertisement – gamble sensibly.
What do you think?
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Developing a credit culture has the side-effect of many individuals defaulting. Fiscal responsibility is something that not everyone can learn the easy way. China will not be the exception and HSBC has no magic in itself to avoid people overspending beyond their debt capacity.
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