Citigroup to seek licences for new wholly-owned securities business in China
- American bank is the latest foreign lender to seek expansion in China as the country further opens up its financial markets
- Bank plans to hire 50 to 100 people for the business, sources say
Citigroup plans to apply later this year to open a new wholly-owned domestic securities business in China as it joins foreign banking rivals in expanding their presence on the mainland, according to people familiar with the matter.
The American bank plans to apply by the second half of this year for licences that would allow it to underwrite domestic securities, engage in advisory services on local deals and conduct trading for clients, as well as engage in stock futures, said the people, who were not authorised to discuss the matter publicly.
Citi plans to hire 50 to 100 people for the business, the people said. Citigroup continues to explore opportunities to expand further and support clients in China, a spokesman said, declining to comment on the bank’s plans.
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Bloomberg reported Citi’s plan to seek the onshore licences earlier on Monday. The move comes two years after Citi agreed to sell its stake in Citi Orient Securities to its joint venture partner.
Credit Suisse recently said it planned to triple its workforce on the mainland over the next three years.