Citi Wins Approval to Establish Wholly Owned Securities Firm in China

Citi Wins Approval to Establish Wholly Owned Securities Firm in China

Citi has received regulatory approval to establish a wholly owned securities company in China, expanding its onshore capital markets business and strengthening its ability to serve domestic and international clients.

The China Securities Regulatory Commission (CSRC) approved the establishment of Citigroup Securities (China) Company Limited, which will be headquartered in Shanghai. The new entity will offer equities brokerage, securities underwriting, research, investment advisory and principal trading, subject to the completion of remaining regulatory and statutory procedures, it says in a statement.

The license will allow Citi to underwrite capital markets transactions onshore, provide direct access to Chinese stock exchanges and trade locally listed shares, bonds, funds and other financial instruments. The new business will complement the bank’s existing offshore capabilities.

“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,” said Citi Chair and CEO Jane Fraser.

Citi has operated in China since 1902 and serves 70% of Fortune 500 companies operating in the country, according to the bank. Its Corporate & Investment Bank also works with hundreds of large domestic corporate and public-sector clients, while its Commercial Bank serves medium-sized businesses.

Citi said it has helped Chinese clients raise more than $40 billion in global capital markets so far this year. The new securities business will enable the bank to extend its underwriting capabilities into China’s domestic market and support corporate and institutional clients seeking access to local capital markets.

“We are honored to receive this approval,” said Wenjie Zhang, Citi’s China country officer and banking head. “The securities company will be an important part of Citi’s strategy in China.”

Zhang added that Citi would focus on building a strong local team and leveraging its global network to support the development of China’s domestic capital markets.