Citigroup Wins Approval to Establish Chinese Securities Firm With 1.2 Billion Yuan in Capital

Key Facts

China’s securities regulator approved the establishment of Citi Securities (China) on October 23, 2026, with registered capital of 1.2 billion yuan. It is wholly owned by Citigroup Global Markets Holdings. The new company’s registered headquarters will be in Shanghai, according to the regulator’s decision. The approval allows Citi to establish a direct local securities entity, while conducting business remains subject to further regulatory procedures. The approved scope covers securities brokerage, investment advisory, underwriting and sponsorship, and proprietary trading. The regulator said approval to establish the company does not by itself authorize it to begin providing these services.

The decision set Citigroup Global Markets Holdings’ stake at 100% of registered capital, making the company a wholly owned subsidiary of the group. This structure opens the way for Citi to provide services directly in China’s securities market within the activities approved by the regulator. The list of businesses includes brokerage and investment advisory, as well as underwriting and sponsorship and proprietary trading. Citi said the license will add onshore underwriting services to its existing capabilities helping clients in global capital markets. Group Chief Executive Jane Fraser said the local capabilities would help clients "raise capital, access investors and trade locally."

Citi must complete the company’s business registration within 6 months of the approval decision, according to the Chinese regulator. After obtaining a business license, it must submit a separate application for a license to conduct securities and futures business within 15 days. The company may not begin operations before that license is issued, making the current approval an initial step in a multi-stage regulatory process. The regulator specified the businesses that may be covered by the license, but tied their practice to completion of the required procedures. The start date for operations therefore depends on completing registration and obtaining operational authorization.

The establishment application cited in the regulator’s document is dated 2021, while Reuters reported that Citi submitted its application to establish a wholly owned brokerage in mainland China late that year. The decision follows a process spanning several years, as the bank expanded its local operations. Citi said it has served clients in China for about 125 years and that the new company will expand services for Chinese and foreign clients. It also said it serves 70% of Fortune 500 companies operating in China. This existing client base provides context for the move to add a specialized local securities entity to the group’s presence in the country.

Citi said it has helped Chinese clients raise more than 40 billion dollars in global capital markets from the start of 2026 through October 23. The group sees the new license as adding onshore underwriting to its existing offshore capabilities and broadening the range of services it can offer clients locally. Wenjie Zhang, Citi’s China country officer and head of banking, said the focus would be on "building a highly efficient local team" and making use of the bank’s global network. The company did not specify a start date for the new entity’s operations in its statement. The next steps set out in the regulator’s decision are to complete business registration within 6 months, then apply for the operational license within 15 days of obtaining the business license.

Citi’s approval came on a day when China also announced its approval for Visa to prepare to establish a bank card transaction settlement business in the country, according to the Associated Press. The development places the regulator’s decision among a series of steps that have opened the way for U.S. financial companies to expand their activities in China. The approval for Citi is limited to establishing a securities entity and the business scope set out in the decision. The regulator’s statement did not announce a timetable for services to begin after the licenses are completed. The transition from approval to operations depends on the company meeting the registration deadlines and licensing requirements set by the regulator.