BAKU, Azerbaijan, October 23. Citi has secured
regulatory approval to establish a securities business in mainland
China, opening the way for the US banking group to expand its
capital markets services within the country.


According to the company announcement, the new entity, Citigroup
Securities (China) Company Limited (CSCCL), will be based in
Shanghai and operate as a wholly owned subsidiary. Before it can
begin business, Citi must complete the remaining statutory and
regulatory procedures.


The license will enable Citi to provide services including stock
trading, securities underwriting, market research and principal
trading to Chinese and international clients. The move will add
local capabilities to the bank’s existing global platform, allowing
it to support clients with domestic transactions as well as
cross-border investment and financing.


Citi has operated in China since 1902, building a client base
that includes multinational corporations, major Chinese businesses
and public-sector institutions. The bank says it serves 70 percent
of Fortune 500 companies operating in the country.


Its new securities business is intended to complement the
services already provided by Citi’s Corporate and Investment Bank
and Commercial Bank. It will give corporate and institutional
clients an additional channel for accessing China’s stock exchanges
and trading locally listed shares, bonds, funds and other financial
instruments.







The approval also builds on Citi’s role in connecting Chinese
companies with international investors. According to the bank, it
has helped Chinese clients raise more than $40 billion through
global capital markets since the beginning of the year. The new
license will allow it to add domestic underwriting to its existing
offshore capital markets offering.


Citi Chair and Chief Executive Officer Jane Fraser said the
approval would strengthen the bank’s ability to serve clients in
China and link their domestic activities with opportunities in
international markets.


Wenjie Zhang, Citi China Country Officer and Banking Head, said
the bank would focus on recruiting a strong local team and drawing
on its international network to support clients and the development
of China’s capital markets.