Citi wins approval for wholly owned securities firm in China

Citi wins approval for wholly owned securities firm in China

Citi has received approval from China's securities regulator to establish a wholly owned securities company, Citigroup Securities (China) Co., Ltd.

Photo: Citi

The approval from the China Securities Regulatory Commission (CSRC) covers Citigroup Securities (China) Co., Ltd., (CSCCL) allowing it to offer equities brokerage, securities underwriting, securities research, and principal trading services to domestic and foreign clients. Citi will complete all statutory and regulatory procedures required to establish the company and prepare for the commencement of operations, according to an announcement on October 23.

Headquartered in Shanghai, CSCCL represents Citi's latest commitment to deepening its onshore presence in China. The company will offer a comprehensive suite of onshore capital markets services to both domestic and foreign clients – including underwriting capital markets deals, equities brokerage providing direct access to China stock exchanges and other financial products, securities research and investment advisory, and trading of onshore listed shares, bonds, funds, and other financial instruments.

Jane Fraser, Citi chair and CEO, said, "Citi has been serving clients in China for nearly 125 years, and we appreciate the support from regulators to expand our offering in this important market. 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."

Citi has a long and distinguished history in China, having been among the first international banks to establish a local entity in the country, dating back to 1902. For well over a century, Citi has served as a trusted partner to Chinese clients pursuing growth opportunities and foreign multinationals seeking to access and navigate the Chinese market.

Citi serves 70 per cent of Fortune 500 companies operating in China, works with several hundred large local corporate and public sector clients through its Corporate & Investment Bank, and supports many more medium-sized enterprises through its Commercial Bank – underscoring the breadth and depth of its client franchise. CSCCL will support the onshore securities and trading activities of Citi’s sizeable corporate and institutional client base looking to access the Chinese capital markets.

As a top-tier global investment bank, Citi brings world-class capabilities in debt and equity underwriting, as well as cross-border mergers and acquisitions advisory. Citi has helped Chinese clients raise more than $40 billion year-to-date in global capital markets, reflecting its unmatched ability to connect Chinese issuers with investors around the world. The securities licence will allow Citi to deepen its service offering by underwriting capital markets deals onshore, complementing its existing offshore capabilities.

Wenjie Zhang, Citi China country officer and banking head, said, “We are honoured to receive this approval. The securities company will be an important part of Citi’s strategy in China. It will enrich and enhance our capabilities to serve clients. We will be focusing on building a high-calibre local team and leveraging our global network to support domestic capital market development.”

VIR