China has been loosening its grip on the country’s financial services sector and has allowed for a greater foreign influence. U.S. bank Citi is the latest to take advantage of the change.
China is opening its financial sector to overseas competitors. UBS, J.P. Morgan and Nomura all have lodged applications to take majority stakes in joint venture brokerages in the country. Citi is now the first U.S. bank to be granted a futures margin depository bank license in China, the bank said in a statement on Friday.
The new status permits Citi to provide futures margin deposit services. «We are honored to be making a further contribution to support the continued opening up of Chinese financial markets,» said Christine Lam, chairman and CEO of Citi China.
Chinese Century
Despite the current trade friction triggered by U.S. President Donald Trump, U.S. banks have turned bullish on their prospects in the populous nation. James Gorman, chairman and CEO of Morgan Stanley for instance wants to increase his stake in joint venture Morgan Stanley Huaxin Securities to 51 percent from the current 49 percent and ultimately to a 100 percent.
J.P. Morgan Chief Executive Jamie Dimon also sees great business opportunities in China. He recently visited the country and, in a rare interview, said the bank was «building in China for the next 100 years».
