Citi secures onshore securities license to deepen China presence

China is doubling down on the opening-up of its capital markets, with Citi winning regulatory approval to establish a wholly foreign-owned securities firm in the country, underscoring Beijing's efforts to give foreign financial institutions greater access to the domestic market.

The China Securities Regulatory Commission announced on Friday that it had approved the establishment of Citigroup Securities (China) Co Ltd, with a registered capital of 1.2 billion yuan ($180 million). The firm will be the seventh wholly foreign-owned securities company in China, adding to a growing lineup of foreign financial institutions seeking to deepen their presence in the world's second-largest economy.

Registered in Shanghai, the new entity will be licensed to provide services including securities brokerage, securities research and investment advisory, securities underwriting and principal trading. Citi said it would complete the remaining statutory and regulatory procedures and prepare for the launch of operations.

The approval comes as Beijing signals renewed support for foreign financial institutions seeking to expand their business in China, where regulatory restrictions on foreign ownership have been progressively relaxed.

At the opening ceremony of the Annual Conference of Financial Street Forum 2026, held in Beijing on Oct 19, CSRC Chairman Wu Qing said China would steadily expand high-standard opening-up of its markets. Wu encouraged foreign institutions to leverage their parent companies' professional expertise and group-wide advantages, further diversify their product offerings and participate in innovative business activities. He also expressed support for more foreign institutions to invest and expand their operations in the country.

Dong Ximiao, chief economist at Merchants Union Consumer Finance, said Citi's approval underscored China's continued efforts to broaden and deepen the opening-up of its financial sector.

Citi has an established commercial banking business in China but has lacked a domestic securities underwriting license in the country, thus limiting its ability to provide Chinese corporate clients with integrated, end-to-end services for cross-border financing. The new securities platform will help close that gap and strengthen the lender's onshore investment banking capabilities, Dong said.

Citi said it had helped Chinese clients raise more than $40 billion in global capital markets so far this year. The new license will enable the bank to underwrite capital market transactions in the Chinese mainland, complementing its existing offshore capabilities.

Ernesto Torres Cantu, head of international at the New York-based bank, said Citi harbors big ambitions to expand in the region, targeting the top spot among global investment banks in China, Bloomberg reported.

Jane Fraser, chair and CEO of Citi, said, "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."

Fraser accompanied United States President Donald Trump on his state visit to China in May as a member of the US business delegation.

Zhang Wenjie, Citi China country officer and banking head, said: "The securities company will be an important part of Citi's strategy in China. It will enrich and enhance our capabilities to serve clients."

The move marks Citi's second attempt to establish a foothold in China's securities sector. In 2012, the bank set up a securities joint venture with Orient Securities, holding a 33.33 percent stake. Citi later sought to increase its ownership to 51 percent, but negotiations failed to produce an agreement. The bank exited the JV in 2019.

Six wholly foreign-owned securities firms are currently operating in China — JPMorgan Securities (China), Goldman Sachs (China) Securities, Standard Chartered Securities (China), BNP Paribas Securities (China), UBS Securities and Mizuho Securities (China).

In April, Japan's Daiwa Securities Group Inc acquired a combined 49 percent stake in Daiwa Securities (China) — previously held by its two Chinese shareholders — for approximately 706 million yuan. Once the remaining procedures are completed, Daiwa could become the eighth wholly foreign-owned securities firm.

Citadel Securities has also applied to establish a wholly foreign-owned securities firm in China, adding to the list of foreign players seeking direct access to the domestic market.

According to the Securities Association of China, 16 securities companies had foreign shareholders with stakes or controlling interests as of the end of last year. Their combined assets totaled 53.47 billion yuan, up 5.44 percent year-on-year, while operating revenue rose 32.61 percent to 10.58 billion yuan in 2025.

jiangxueqing@chinadaily.com.cn