CHICAGO, Feb. 9, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Citigroup Inc. (NYSE: C), HSBC Holdings PLC (NYSE: HBC), J.P. Morgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS) and UBS AG (NYSE: UBS).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
China OKs Citi Credit Card Biz
Citigroup Inc. (NYSE: C) will launch its own credit card business in China. Its Chinese subsidiary Citibank (China) Co. Ltd. has received approval from the China Banking Regulatory Commission. The company will launch both retail and commercial cards before the end of this year. This marks a landmark for Citigroup -- the first U.S.-based bank to introduce its own credit card in China.
Prior to 2008, foreign companies were only allowed to issue credit cards in collaboration with local companies. Regulators have been slow in approving foreign companies' direct participation in this business and currently only Hong Kong-based Bank of East Asia is permitted to issue credit cards in mainland China.
Citi currently has a co-branded credit card business in China with Shanghai Pudong Development Bank. This credit card venture started in 2003. Following Citi's credit card business launch, Shanghai Pudong Development Bank will be responsible for its existing credit card business. Similar to Citi, HSBC Holdings PLC (NYSE: HBC) has a co-branded card with Bank of Communications Co.
Citi currently has its business in institutional and consumer lines in China and expects this credit card business launch to boost its growth momentum in the country. Only last month, Citi's securities joint venture (JV) in China with Shanghai-based Orient Securities Co. has received a regulatory nod.
The JV will be named Citi Orient Securities Co. and will carry on investment banking activities including securities underwriting and sponsoring. This partnership was announced in June last year, and it is expected to be fully operational by mid-2012.
According to the terms of the agreement, Orient Securities will have a 66.7% stake in the JV and the remaining 33.3% will be held by Citi. This is the maximum permissible holding for a foreign entity according to the Chinese law. Besides Citi, J.P. Morgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), UBS AG (NYSE: UBS) andothershave also set up such JVs in China.
These approvals indicate the opening up of the Chinese economy to some extent. Citi's efforts to expand its business in China are part of its strategy to explore the thriving economy and booming consumer and commercial market in China.
Going forward, we believe that such strategic partnerships will enhance Citi's global network and boost its revenue base by leveraging on faster-growing economies like China, thereby increasing its market share internationally. Citi currently retains its Zacks #3 Rank, which translates into a short-term Hold rating.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article