Citi Sets Up China Desk in Singapore — Report

According to a CNBC report, financial services provider Citigroup’s (C) commercial banking unit has set up a China desk in Singapore to help “emerging” Chinese companies expand across Southeast Asia. The unit is catering to mid-sized companies with an annual turnover of up to $1 billion. The China-focused desks have also been placed in Hong Kong and India.

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The business and financial center in Southeast Asia, Singapore, has been eyed as an apt location for business by companies all over the world due to U.S.-China tensions and Beijing’s tightening grip on Hong Kong. (See Citigroup stock chart on TipRanks)

The Head of ASEAN and Singapore at Citi Commercial Bank, Lin Hsiu-Yi, said, “Singapore and the broader ASEAN region are key markets for growth for expanding Chinese emerging corporates. A majority of these clients set up holding companies in Singapore for their ASEAN units.”

CNBC also reported that Citi witnessed a significant rise in revenue from client activity and flows from China to Singapore last year. Notably, the number of China-based clients with whom the company conducts business in Singapore climbed 35% year-over-year in 2020.

Last month, Oppenheimer analyst Chris Kotowski reiterated a Buy rating on Citigroup but decreased the price target to $114 from $116, implying 60.2% upside potential.

Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The average Citigroup price target of $90.75 implies 27.5% upside potential.

Citigroup scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.