Citigroup Inc.’s efforts to establish a fully-owned securities business in China are delayed due to challenges in complying with the country’s stringent data laws, according to a Bloomberg report. Initially projected to secure a licence by mid-2023, the New York-based bank now targets launching the venture around the end of next year at the earliest. The delay follows China’s introduction of new data security laws in 2021, demanding extensive infrastructure development before granting operational licences. The bank submitted a preliminary application in 2021 for a brokerage and futures trading operation. However, progress has been hindered by the need to build a separate technology system and recruit over 30 employees, including key executive positions, to meet China’s regulatory requirements. Some hiring processes have been paused due to uncertainties in completing the required technology system.
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