Citigroup Wins Approval for Wholly Owned China Securities Unit

Citigroup received regulatory approval from the Chinese government to launch a wholly owned securities business, ending an application process that began in late 2021. The new unit, Citigroup Securities (China), will be headquartered in Shanghai with a registered capital of 1.2 billion yuan, or approximately 180 million US dollars.

The securities business will provide onshore capital market services, including equities brokerage, underwriting, research, investment advisory, and trading for domestic and international clients. The bank intends to build an onshore team of more than 100 staff, with an initial focus on renminbi-denominated equities underwriting and futures trading.

This approval follows a period of regulatory friction between Washington and Beijing and occurred shortly after a meeting between US President Donald Trump and Chinese leader Xi Jinping. The move allows the bank to rebuild its domestic presence after it exited consumer banking in the region and dissolved a joint venture with Orient Securities in 2019.