US-based bank is seeking licenses to “underwrite yuan-denominated shares and conduct trading for clients, as well as a license for futures brokering within the next two months” in China. Citibank is among foreign banks hoping to cash in on the opening up of China’s capital markets to overseas finance. Until recently foreign companies needed to form joint-ventures with domestic firms to operate in the country. But those rules have been relaxed and now some of the biggest names on Wall Street – including JPMorgan and Goldman Sachs are hoping to get a handle into the market.
Last week Citibank said it would exit consumer markets in China, India and 11 other mostly Asian markets as it reported a sharp rise in global earnings. The move was explained as part of a desire to “double down” on wealth management in the country. A Wealth Connect initiative, like the Stocks and Bonds Connect schemes before it, is hoped to link onshore and offshore trading and boost China’s fund-management businesses. Citigroup will focus its Asian consumer banking business on Singapore and Hong Kong, according to a spokeswoman, who added that the UK and the United Arab Emirates would be the other global hubs. Citigroup’s global consumer banking business at the end of 2020 had $6.5 billion in revenue and $123.9bn in deposits. The bank has about 200 branches in Asia.