Citi China Securities Company Wins Approval for Wholly Owned Operations

The Citi China securities company has received regulatory approval to establish wholly owned operations in mainland China, strengthening the US banking group's access to the country's domestic capital markets.

China's securities regulator approved the establishment of Citigroup Securities (China) Company Limited, which will be headquartered in Shanghai.

The new company intends to provide equities brokerage, securities underwriting, investment research and principal trading services.

However, additional regulatory procedures must be completed before operations can begin.

The approval will allow Citi to develop its onshore securities capabilities and strengthen connections between corporate and institutional clients and mainland China's capital markets.

Citi said it has operated in China for nearly 125 years and serves approximately 70% of Fortune 500 companies operating in the country.

For international institutional investors and family offices, the expansion could eventually provide additional channels for accessing Chinese securities markets through a global financial institution.