An American financial group is looking to expand its commercial banking operations in China by concentrating on small to medium-sized enterprises (SME).

Citigroup has revealed plans to add to the existing number of Citibank branches in the far east country in order to enhance its loan services available to SMEs, reports Reuters.

The chief executive at the New York-based group's Chinese division, Richard Stanley, announced that a further 1,000 employees are expected to join the company in 2007 as a result of concerted attempts to increase its market share of small business customers.

"Our SME business is more than double in 2006 versus 2005 and I believe we can maintain three-digit growth of the business this year and over the next few years," commented Henry Zhang, business unit head at Citigroup China.

Governors in the capital of China, which is the world's fourth largest economy, have reportedly been involved for over ten years in encouraging residents to start up their own small businesses as Beijing aims to become a financially diverse city.

Mr Stanley also declared that Citigroup plans to increase its stake in the Shanghai Pudong Development Bank at a later date this year, according to Market Watch.