Citigroup is poised to receive a Chinese securities license in September 69 and plans to double its workforce to 100 people.

Citigroup expects to receive approval to establish a wholly-owned securities firm in China as early as September, and plans to increase its workforce to around 100 people by the end of the year, expanding into A-share and investment banking businesses.

On September 4, 2569, at 13.39:2 PM, Reuters reported that Citigroup expects to receive approval from Chinese regulators to establish a wholly-owned securities firm in mainland China as early as September, and is preparing to add dozens of employees in the coming months to expand its business in the world's second-largest economy.

Sources familiar with the matter indicate that final approval from Chinese regulators, which Citigroup has long awaited, may occur around the same time as President Xi Jinping's planned visit to Washington to meet with U.S. President Donald Trump in late September.

Citigroup, which currently provides banking services to corporate and institutional clients in China, has been applying for a license to establish a wholly-owned securities firm in mainland China since late 2564 as part of its strategy to expand into the Chinese market.

Citigroup has been gradually recruiting employees in preparation for this business segment over the past two to three years and aims to nearly double its workforce to approximately 100 people by the end of this year.

The expansion will put Citi in direct competition with already licensed Wall Street banks in China, such as JPMorgan, Goldman Sachs, and Morgan Stanley, for market share in the growing and increasingly profitable domestic securities trading and underwriting business.

Citigroup's business launch comes at a time when technology companies and other Chinese companies are increasingly raising capital through domestic stock markets, while the Chinese stock market is also experiencing increased capital inflows.

Despite geopolitical tensions between China and the United States in recent years, Beijing continues to open up its trillion-dollar financial industry to investors and institutions from Wall Street in an effort to attract capital into the country.

Citigroup's workforce expansion plan will cover levels ranging from senior bankers in direct customer-facing roles to support staff, utilizing both internal staff transfers and external recruitment.

Citigroup also plans to relocate some bankers from Hong Kong and other Asian markets, as well as move employees working in mainland China to a new securities firm.

Citigroup's new business is currently seeking approval to offer a range of services in mainland China, including A-share brokerage, underwriting, research, and securities trading using the company's own funds.

These services will complement Citigroup's existing Chinese investment banking business, which currently focuses on helping Chinese companies raise capital in overseas markets.

Citigroup also plans to leverage its existing base of corporate and high-net-worth clients in China, where it serves foreign exchange, cash management, and trade finance, to secure funding through A-share equity and mergers and acquisitions (M&A) transactions.

For its target industry groups, Citigroup will focus on technology, healthcare, consumer goods, and financial institutions, encompassing both large Chinese companies with strong business foundations as well as emerging companies in the AI ​​and semiconductor industries.

The Chinese stock market is generating better returns for its Wall Street competitors, with profits projected to nearly triple by 2025 to reach 1.46 billion yuan, or approximately $217.4 million.

While JPMorgan's profits nearly quadrupled to 984 million yuan, Morgan Stanley's profits increased sevenfold to 138 million yuan. The US banks were boosted by increased securities trading income, particularly from institutional clients.

However, Citigroup faces competition not only from fellow Wall Street banks but also from major Chinese securities firms that already dominate the market. Meanwhile, some foreign financial institutions have decided to reduce their roles or withdraw from China in recent years due to this intense competition.

Fidelity International recently announced plans to discontinue its wholly-owned equity fund management business in China, while Schroders previously decided to transfer its team and products in China to Neuberger Berman.

Citigroup's aggressive expansion into China comes as the bank's CEO, Jane Fraser, is pushing for goals to increase the group's profitability over the next two years. Fraser was also the only female CEO of a global bank to travel with Trump during his visit to Beijing last May.

Reference: www.reuters.com

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