Citigroup received regulatory approval to establish a wholly-owned securities venture in mainland China. This marks a significant step in its expansion into the country's financial markets. The approval concludes a process that began when the bank applied for the license in late 2021.
The new unit will allow Citigroup to conduct onshore securities trading, underwriting, research, and M&A advisory services. This enables the bank to compete directly with Goldman Sachs and JPMorgan. These Wall Street firms already operate wholly-owned securities businesses in China. Citigroup plans to leverage its existing corporate banking relationships to grow its investment banking business.