Citi Gains Approval for Wholly Owned China Securities Unit

Citigroup has received approval from Chinese regulators to establish a wholly owned securities business in mainland China, a move set to enable the US bank to expand its presence in the world’s second-largest economy.

The China Securities Regulatory Commission approved the plan on Friday, October 23, which clears the way for Citigroup Securities (China) Company to offer onshore services to domestic and international clients from its Shanghai headquarters, after almost five years of regulatory review.

The new business will provide securities underwriting, equities brokerage, research, investment advice and trading in mainland-listed securities. Citi must complete the remaining statutory and regulatory procedures before the unit can begin operations.

The bank applied for the license in late 2021 as part of a push to expand its onshore operations. It has been building the team over the past two years and aims to increase headcount to around 100 employees by the end of 2026, according to Reuters.

Citi chair and executive Jane Fraser commented: “By adding onshore capabilities to our global platform, we will be able to do more for clients in China's domestic capital markets, including helping them raise capital, access investors and trade locally, while connecting them to opportunities around the world.”

The new license will complement Citi’s existing corporate and institutional banking operations in China, strengthening its ability to support clients seeking access to domestic capital markets.

The bank has operated in China since 1902, but its latest expansion follows years of regulatory review and comes amid renewed efforts to open the country’s financial sector to overseas firms.