Citi gets nod for wholly owned securities firm in China

Citi has received approval from the China Securities Regulatory Commission to establish a wholly owned securities company in China, marking a further expansion of the US banking group's onshore capital markets business.

The new entity, Citigroup Securities (China) Company Limited, will be headquartered in Shanghai and offer equities brokerage, securities underwriting, securities research, investment advisory and principal trading services to domestic and international clients, Citi said on Friday.

Citi will complete all statutory and regulatory procedures before commencing operations. Its onshore license will enable Citi to underwrite capital markets deals locally, provide direct access to Chinese stock exchanges and trade onshore-listed shares, bonds, funds and other financial instruments.

"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," Jane Fraser, Citi's chair and CEO, said.

By integrating its new onshore capabilities with its global platform, Citi will be better positioned to help clients in China's domestic capital markets raise capital, access investors and trade locally, while connecting them with opportunities overseas, Fraser said.

Highlighting its role in connecting Chinese issuers with international investors, Citi said it had helped Chinese clients raise more than $40 billion in global capital markets year-to-date. The securities license will allow Citi to deepen its service offering by underwriting capital markets deals onshore, complementing its existing offshore capabilities.

Zhang Wenjie, Citi China country officer and banking head, said the approval marked an important step in the bank's China strategy and would enrich its capabilities to serve clients.

Citi will focus on building a high-caliber local team and leveraging its global network to support the development of China's domestic capital markets, Zhang said.