Citigroup seeks China brokerage licence – report

Citigroup is expected to secure Chinese regulatory clearance for its fully owned brokerage operation in mainland China as early as this month, with plans to recruit several dozen employees for the business in the coming months, according to Reuters.

Sources told Reuters that the final approval may come around the period of Chinese President Xi Jinping's scheduled trip to Washington for talks with US President Donald Trump in late September.

Reuters said the prospect of approval this month had not been previously disclosed.

The US lender, already active in China through corporate, institutional and related banking services, applied in late 2021 for a licence to establish a fully owned mainland brokerage arm as part of a broader effort to deepen its operations in the country.

One source said the bank, which has spent the past two years building staff in preparation for the launch, wants to raise employee numbers at the unit to about 100 by the end of the year, roughly twice its current level.

Reuters said the planned recruitment will cover both senior revenue-generating roles and operational support positions, using a mix of staff relocations and outside hiring.

The first source said Citi intends to transfer some bankers from Hong Kong and other parts of Asia into the China brokerage operation, while also reassigning certain existing mainland employees to the new entity.

According to the sources, the unit is seeking permission to carry out A-share brokerage, underwriting, research and principal trading in China's onshore market.

These activities would sit alongside Citi's current China investment banking team, which is geared towards helping domestic companies raise funds in overseas markets, the first source said.

The people said Citi plans to draw on its mainland corporate and commercial banking relationships, where it already provides services such as foreign exchange, cash management and trade finance, in pursuit of A-share equity and M&A work.

The new business is expected to focus on industries including technology, healthcare, consumer and financial institutions, targeting both established Chinese corporate "champions" and newer companies such as AI and chip groups.

Earlier this week, Citi said it would increase headcount by 25% across South Africa, Europe and Asia to support the outbound banking requirements of North Asian clients, including those from mainland China.

Alongside competition from US investment banks, Citi would also enter a market dominated by Chinese brokerages. Several overseas financial groups have scaled back or withdrawn from China in recent years amid intense competitive pressures.