CITIGROUP yesterday said it has sold its 2.71 percent stake in Shanghai Pudong Development Bank through block trades to unnamed institutional investors as the New York-based bank maneuvers to build its own business in China.

Citi said it made an after-tax gain of about US$349 million from the sale.

Citi, a strategic partner of the Pudong bank for 10 years, said it has a new cooperative arrangement with the local lender, including supporting its future international expansion through the US banking giant's global network and credit lines, as well as the provision of technical assistance and training services.

The Pudong bank, China's seventh-biggest lender, said the sale will not affect its daily operations and both banks look forward to strengthening and deepening the mutually beneficial cooperation in the future.

Citi has won regulatory approval last month to launch its own consumer and commercial credit cards on the Chinese mainland to further penetrate the domestic retail banking market. The cards may be launched this year, according to the bank's earlier statement.

Citi also formed a securities joint venture with Orient Securities in January to do investment banking in China.