China approves Citigroup securities venture after nearly five-year wait

Citigroup (C) has secured Chinese regulatory approval to establish a wholly owned securities venture in China, ending a process that began in 2021.

The approval follows a meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Washington, amid efforts to improve financial-market access for American firms in China.

Headquartered in Shanghai, Citigroup Securities (China) will offer a range of onshore capital markets services to both domestic and foreign clients, including underwriting, equities brokerage, investment advisory, research, and trading of onshore listed securities.

“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,” Jane Fraser, chair and chief executive officer of Citigroup said.

Citi already maintains a significant presence in mainland China, with licenses covering bond clearing and settlement, futures margin deposits, corporate bond underwriting and domestic fund custody.

China’s approval for Citigroup follows similar clearances for two Japanese financial firms last week, underscoring Beijing’s continued efforts to open its capital markets even as domestic stocks face a sharp selloff.