Guangfa Fiasco Offers Lessons in Factionalism

(Beijing) - A golden era that saw foreign banks flock to China in pursuit of riches came to a symbolic end earlier this year, when global giant Citigroup officially dumped its longtime holding in China Guangfa Bank Co., one of China's oldest commercial lenders in the southern city of Guangzhou.

Few details were given at the time, as the two sides announced a divorce that saw Citi end a decadelong partnership with the sale of its 20 percent Guangfa stake to China Life Insurance. But new insider details show the constant discord inside the bank, reflecting conflicts that often exist between commercially minded Western businesses and their more politically focused Chinese partners.