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.
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.
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