Zhang will assume responsibility for Citigroup's support functions in the Asia-Pacific region, including human resources, legal and finance operations and technology, and corporate affairs, the US bank said in a statement yesterday.

The former World Bank official, who will begin his new role in Hong Kong in October, will remain vice chairman of the global banking division of the investment bank, a post he took last November.

Zhang, 48, will report to Robert Morse, regional chief executive officer for Citigroup Corporate and Investment Banking in the Asia-Pacific region.

"Zhang's expertise in the Asia-Pacific region, coupled with his international, economic and banking experience, reinforces the strength of Citigroup's regional team and will further contribute to our business momentum," Mr Morse said in a statement.

Former World Bank Vice President Zhang Shengman

Zhang, also a former China finance ministry official, joined Citigroup last November to head its public sector group, a job that "has contributed greatly" to Citigroup's ongoing effort to expand its global public sector franchise and provide governments around the world with comprehensive advice and solutions, according to Robert Druskin, President and CEO of Citigroup Corporate and Investment Banking.

China, with its roaring economy growing at close to a double-digit rate in recent years, is increasingly becoming a key battleground for global investment banking giants.

The economy grew 10.9 per cent in the first half of this year and generated US$801 million in investment banking revenue last year, accounting for 17 per cent of Asia's total of US$4.7 billion, according to financial data provider Dealogic Plc.

Morgan Stanley was the top accountant in China's IPO deals, while Citigroup ranked 12th according to Dealogic.

Competition for a bigger slice of the pie spurred a series of personnel reshuffles in both investment banks earlier this year.

In January, Morgan Stanley snatched one of Citigroup's top China executives, Wei Christianson, the former chairman of China for Citigroup Global Markets (Asia) Ltd, to head its China operations, dealing a heavy blow to Citigroup.

Citigroup retaliated in March by stealing Morgan Stanley's co-head of investment banking for China, Zhao Jing, to lead its China investment banking operations.

Before joining Citigroup last November, Zhang Shengman worked for the World Bank Group where he was the managing director in charge of the Bank's worldwide lending and advisory operations, and most of its corporate and support functions from 2001 to 2005.

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