Citigroup announced that it anticipates receiving final approval from Chinese regulators for its wholly‑owned mainland brokerage unit as early as this month. The bank, which applied for the licence in late 2021, expects to add several dozen staff over the next few months, aiming to double the unit’s headcount to roughly 100 people by the end of 2025.
Timing and political backdrop
The anticipated approval could coincide with President Xi Jinping’s planned visit to Washington to meet President Donald Trump in late September, sources said. While Sino‑U.S. relations have been strained, Beijing continues to broaden access for foreign banks to its trillion‑dollar financial sector, seeking greater capital inflows.
Competitive landscape
Citi will join other Wall Street firms already licensed in China, including JPMorgan, Goldman Sachs and Morgan Stanley, in competing for on‑shore securities trading, underwriting and research business. In 2025, Goldman Sachs’ China securities unit reported profits of 1.46 billion yuan, JPMorgan’s nearly 984 million yuan and Morgan Stanley’s 138 million yuan, underscoring the profitability of the market.
Strategic focus
The new unit will offer A‑share brokerage, underwriting, research and principal trading services. It will complement Citi’s offshore‑focused China investment‑banking team, which advises domestic companies on overseas financing. The bank plans to leverage its existing on‑shore corporate and commercial client base—covering foreign exchange, cash management and trade finance—to win equity and M&A mandates.
Sector‑specific targets include technology, healthcare, consumer goods and financial institutions, with an eye on China’s established corporate “champions” as well as emerging AI and semiconductor firms.
Hiring strategy
Citi’s hiring push will draw senior front‑office bankers, support staff and existing mainland employees. Some bankers will relocate from Hong Kong and other Asian markets, while others will transfer internally. The expansion follows a recent 25 percent headcount increase across South Africa, Europe and Asia to support North Asian clients, including those from mainland China.
Broader market context
China’s equity markets have attracted a growing list of technology and other companies seeking domestic fundraising, and foreign banks have benefited from surging securities‑trading revenue driven largely by institutional investors. However, the environment remains highly competitive; recent exits by firms such as Fidelity International and Schroders illustrate the challenges foreign players face.
Citigroup’s CEO Jane Fraser, who accompanied President Trump on his May visit to Beijing, highlighted the importance of stronger profitability targets for the next two years. Securing the brokerage licence would mark a significant step toward expanding Citi’s on‑shore presence and capturing a larger share of China’s lucrative securities market.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
