Citi has received approval from the China Securities Regulatory Commission ( CSRC ) to establish a wholly-owned securities company in China, Citigroup Securities ( China ) Company Limited ( CSCCL ).
The onshore securities licence will allow CSCCL 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 securities company and prepare to begin operations.
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.
These services include 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.
Expansion of services
Chair and chief executive officer Jane Fraser comments: "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.
The bank serves 70% of Fortune 500 companies operating in China, works with several hundred large local corporate and public sector clients through its corporate and investment bank division, and supports many more medium-sized enterprises through its commercial bank operations.
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.
The securities licence will allow Citi to deepen its service offering by underwriting capital markets deals onshore, complementing its existing offshore capabilities. Year-to-date, the bank has helped Chinese clients raise more than US$40 billion in global capital markets.
“The securities company will be an important part of Citi’s strategy in China,” says Wenjie Zhang, Citi China country officer and banking head. “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.”
