Citi to Boost Asia Markets Headcount
Citi is making a bold move in Asia, planning a 5-10 percent headcount increase across its rates and prime services businesses to meet soaring client demand. With hedge fund flows surging, IPO activity rebounding, and record trading results on the books, Citi’s Markets franchise is positioning itself at the center of the region’s financial revival.
Citi Markets will grow its team in Asia by up to 10 percent over the next year, focusing on its rates and prime businesses, the US bank announced on Wednesday. The decision comes as client activity – particularly from hedge funds – picks up sharply, driven by a market resurgence in Hong Kong and mainland China.
«The surge in client activity, particularly from hedge funds, and the booming IPO market in Hong Kong and China have created an unprecedented demand for our services,» said Paul Smith, head of markets for Japan, Asia North, and Australia at Citi.
Sharp IPO Rebound in Hong Kong
Citi reports that the number of its Prime hedge fund clients in Asia has doubled in just two years. A key driver: the sharp rebound in IPOs, especially in Hong Kong, which is restoring investor appetite and prompting funds to ramp up trading strategies.
There is also growing interest from US-based quantitative funds seeking exposure to China’s less-liquid A-shares. Citi’s ability to provide access to these otherwise hard-to-reach stocks has helped the bank secure significant new mandates from global players.
Capitalizing on China
Client flows into Hong Kong and China increased by about 30 percent in the first half of 2025, marking a strong comeback after years of muted volumes. Citi is strategically expanding its franchise to harness these flows across both equities and fixed income.
Smith added, «The strategic expansion across our Markets franchise and in particular, our rates and prime businesses, will allow us to better serve our clients and capitalize on the significant growth opportunities in the region.»
Record Trading Performance Boosts Confidence
Citi’s traders posted their best second quarter in five years, with a record equities performance and strong fixed income momentum. Equities revenues hit $1.6 billion, up 6 percent year-on-year, powered by a 27 percent surge in prime balances and heightened client activity in cash equities.
Fixed income markets delivered $4.3 billion in revenues – up 20 percent year-on-year – fueled by strong growth in rates and currencies (up 27 percent) and increased demand from both corporate and institutional clients. Spread products and other fixed income revenues also climbed 3%, driven by higher financing activity and loan growth.
Citi Bets on Asia’s Financial Future
Citi’s expansion signals growing confidence in Asia’s capital markets and in its ability to be a leading player. As the region sees a revival in public listings, fund activity, and cross-border flows, Citi is moving quickly to deepen its franchise and gain market share.
By increasing talent in critical areas like prime and rates, and leveraging its access to unique market segments such as China’s A-shares, Citi is aligning itself with the next phase of Asia’s financial growth story.
