The license covers equities brokerage, securities underwriting, securities research and principal trading
Chinese regulators have approved Citi’s plan to establish a wholly owned securities company in China, the world’s second-largest economy. Citi said Friday that it received the approval, which the China Securities Regulatory Commission also announced the same day.
Under the onshore securities license, Citi will be able, through the new entity, to offer equities brokerage, securities underwriting, securities research and principal trading services to domestic and foreign clients.
Citi said it has a “sizable corporate and institutional client base looking to access the Chinese capital markets.”
Wenjie Zhang, Citi’s country officer and banking head for China, called the securities company “an important part of Citi’s strategy in China.”
Citi chief executive officer Jane Fraser was part of the U.S. business delegation that accompanied President Donald Trump on his May trip to Beijing. Fraser also attended the state dinner that Trump hosted for Chinese leader Xi Jinping at the White House last month.
Citi’s approval followed a recent decision by Beijing allowing Visa to prepare to set up a bank-card clearing business in China. The two moves came as Beijing opened its financial market to U.S. companies.
The Citi approval came about a month after Xi and Trump met in Washington to keep U.S.-China ties stable. AP reported that the leaders were expected to meet two more times by year’s end amid a tariff and trade war.