Citibank launches yuan debit card in China

SHANGHAI, July 30 (Reuters) - Citibank started issuing yuan-denominated debit cards in China on Wednesday, the third foreign bank to offer the cards, which are key to building up retail banking services in the world's fastest growing major economy.

But Citibank, which already has a credit card joint venture with Chinese partner Shanghai Pudong Development Bank (600000.SS), appeared to play down the near-term prospects for issuing credit cards independently in China.

"Our focus in the near future will be to launch the debit card and do it well," Citibank's China Chief Executive Officer Andrew Au told a news conference. "Our credit card venture with Pudong bank has been going very well."

He declined to comment when asked if the bank had applied to regulators for approval to issue an independent credit card.

Citibank, the banking unit of Citigroup (C.N), follows Bank of East Asia (0023.HK) and Standard Chartered (STAN.L)(2888.HK) in offering debit cards to Chinese residents, which hold more than $2 trillion in household savings.

A Standard Chartered executive said last week it had applied to Chinese regulators for permission to offer credit cards.

Debit cards will attract deposits to Citibank China and bolster other consumer banking businesses such as wealth management, mortgage lending and personal loans, Anand Selvakesari, Citibank's China vice president of consumer business, told the news conference.

Citibank, which has been stung in the United States by the subprime mortgage crisis, saw no immediate risks in China's home lending business.

"Right now, we don't see alarming signs," Selvakesari said. "In most Chinese cities, the property prices are going up. But we keep watching." (Reporting by Samuel Shen; Editing by Edmund Klamann)