Citi has received long-awaited approval to operate a wholly owned securities business in China, weeks before an expected meeting between Donald Trump and Xi Jinping. The green light, announced by China's securities regulator, allows the US bank to offer equities brokerage and securities underwriting in the mainland after a five-year review. Jane Fraser, Citi's chief executive, said the bank appreciates regulatory support to expand in this important market.
The approval comes as the US and China manage strained ties following last year's tariff war. This month, Visa also gained approval to set up card operations in China. Citi initially applied for a licence in late 2021 after China allowed foreign companies to fully own domestic securities businesses.
The regulatory shift resulted from a US-China trade deal during Trump's first term. Goldman Sachs and JPMorgan took full control of their domestic businesses in 2021. Last year, several Wall Street banks saw record high net profits in mainland China, largely on trading and brokerage.
Wenjie Zhang, Citi's China country officer, said the approval would enrich and enhance capabilities to serve clients. The bank will focus on building a high-calibre local team and leveraging its global network to support domestic capital market development. Citi has been serving clients in China for nearly 125 years.
Source: Financial Times Companies · Summarized by HeadlinesBriefing