Core Points - China UnionPay has terminated the membership of Citibank (China) Co., Ltd. as part of Citibank's exit from personal banking in China [1] - Citibank China stated that its corporate banking services remain unaffected and it will continue to serve corporate and institutional clients in the Chinese market [1] - Citibank announced a global restructuring of its personal banking business in April 2021, which included exiting personal banking in over ten markets, including China [1] - In December 2022, Citibank confirmed the gradual closure of its personal banking operations in mainland China, excluding corporate banking [1] - On October 9, 2023, Citibank announced the sale of its personal wealth management business in mainland China to HSBC China, with the transaction expected to be completed by June 11, 2024 [1] - The acquisition by HSBC China includes personal wealth management clients and related assets in 11 major cities across the country [1] - Starting May 6, 2024, Citibank China will cease the transaction functionality of its personal credit cards, with the business being taken over by Fubon Bank [2]

Core Insights - China UnionPay has terminated the membership of Citibank (China) Co., Ltd, which was initiated by Citibank China as part of its global business restructuring [1][2] - Citibank China stated that its corporate banking services remain unaffected, focusing on serving corporate and institutional clients in China [1][2] - The termination of UnionPay membership is linked to Citibank's ongoing exit from personal banking in various global markets, including China [1][2] Group 1: Citibank's Business Strategy - Citibank has been restructuring its global personal banking operations, planning to exit personal banking in 14 markets, including Asia and Europe [1] - In December 2022, Citibank announced the gradual closure of its personal banking operations in mainland China, excluding corporate banking [1] - By June 2024, Citibank completed the sale of its personal wealth management business in mainland China to HSBC, transferring over 300 employees [2] Group 2: Market Dynamics - The termination of Citibank's UnionPay membership reflects a significant reduction in its retail payment business, which is nearing zero due to the exit from personal banking [2] - Despite Citibank's exit, there is a growing interest from foreign banks to join China UnionPay, driven by the increasing number of expatriates in China [3] - The entry of more foreign banks into the UnionPay network is expected to enhance payment services and improve customer experience in the competitive market [3]

Group 1 - Citibank China has voluntarily terminated its membership with China UnionPay, ceasing its payment operations through the UnionPay network [2][3] - This decision is part of Citigroup's global restructuring of its personal banking business, which includes exiting the personal banking market in 14 global markets, including mainland China [2] - Following the termination, Citibank China will stop its personal credit card transactions by May 6, 2024, and will gradually cease related product services [2] Group 2 - The termination of Citibank China's UnionPay membership also results in the automatic termination of its UnionPay International membership, preventing it from conducting domestic and cross-border payment operations [3] - Customers holding Citibank China cards may face some impact when using UnionPay International channels abroad, but those whose accounts have transitioned to HSBC China will likely remain unaffected [3] - Despite the termination, Citigroup's overseas entities can still independently become UnionPay International members to conduct international business through the UnionPay network [3] Group 3 - The termination of Citibank China's membership has prompted interest from various foreign banks seeking to become UnionPay members, aiming to expand their payment acceptance networks and enhance customer experience in China [4]