Full Breakdown
Citi Wins CSRC Approval to Launch Wholly Owned Securities Firm in China
By Drooid · · How we work
Core Event
The China Securities Regulatory Commission (CSRC) has approved Citigroup’s application to establish a wholly owned securities subsidiary, Citigroup Securities (China) Company Limited (CSCCL). Headquartered in Shanghai, CSCCL will be granted an on-shore securities license that enables equities brokerage, securities underwriting, research, investment advisory and principal trading for both domestic and foreign clients.
Background and Context
Citi’s presence in China dates back to 1902, making it one of the earliest foreign banks to set up a local entity. Over the past century the bank has expanded its corporate and investment banking franchise, serving a broad client base that includes a majority of multinational corporations operating in the country. The new on-shore securities license builds on Citi’s existing offshore capabilities, allowing the firm to offer a full suite of capital-markets services directly within China’s regulated market.
Services and Market Reach
CSCCL’s authorized activities will include:
- Direct access to Chinese stock exchanges for equities brokerage.
- Underwriting of on-shore capital-markets transactions.
- Research and investment advisory for domestic and international investors.
- Principal trading of listed shares, bonds, funds and other financial instruments.
Citi states that it serves roughly 70 % of Fortune 500 companies with operations in China and works with several hundred large local corporate and public-sector clients, while also supporting many medium-sized enterprises through its commercial banking arm.
Data and Statistics
- Citi reports that its corporate and institutional clients have raised more than US $40 billion in global capital markets year-to-date.
- The bank’s client franchise in China encompasses 70 % of Fortune 500 firms operating in the market.
These figures are presented by Citi in its announcement of the CSCCL approval.
Official Statements & Responses
Jane Fraser, Citi’s chair and chief executive officer, emphasized the long-standing relationship with Chinese clients, noting that “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.”
Verbatim Quotes
- “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,” — Jane Fraser, chair and CEO
- “We are honored to receive this approval. The securities company will be an important part of Citi’s strategy in China. It will enrich and enhance our capabilities to serve clients. We will be focusing on building a high-caliber local team and leveraging our global network to support domestic capital market development.” — Wenjie Zhang
- “We are honored to receive this approval,” — Wenjie Zhang
- “The securities company will be an important part of Citi’s strategy in China.” — Wenjie Zhang
What’s Next
Citi will complete all remaining statutory and regulatory procedures required to launch CSCCL before commencing operations. The firm plans to recruit a local team and integrate the new on-shore capabilities with its global platform to support domestic capital-market development in China.