China Approves Citi Securities Unit With 1.2 Billion Yuan in Capital
Key Facts
China’s securities regulator on October 23, 2026, approved the establishment of a Citi securities company in Shanghai with registered capital of 1.2 billion yuan. Citi Global Markets Holdings owns all of the new company’s capital, according to the decision published on the regulator’s website. The approval establishes the group’s direct presence in China’s securities market and opens a path to providing local services to clients. But the decision authorizes the company’s establishment and does not allow it to begin operations immediately. It must complete registration procedures and obtain a securities and futures business license before providing services.
The decision set out the scope of business the new company may seek to offer, including securities brokerage and investment advisory services. It also covers underwriting sponsorship and proprietary trading. Citi said the unit will provide capital markets services in China to local and foreign clients. The services it announced include equity brokerage, underwriting, research and proprietary trading, as well as investment advisory services and trading in locally listed stocks, bonds and funds. The plan thus combines client-facing services with proprietary trading, with the start of operations still subject to the required regulatory approvals.
The regulator set a timetable for completing the establishment and licensing process. The company must complete commercial registration within 6 months of the decision date, then apply for a securities and futures business license within 15 days of obtaining its business license. It may not conduct business in the company’s name before the operating license is issued, according to the decision. Citi said it will complete the necessary statutory and regulatory procedures to establish the company and then prepare to begin operations. This sequence makes the approval an establishment step before the company enters the market, not an announcement that services have begun.
Citi placed the new unit within its plan to strengthen its ability to serve clients in China. Chief Executive Jane Fraser said local capabilities would help the group support clients in China’s capital markets, including fundraising, access to investors and local trading. Wenjie Zhang, Citi’s China country officer and head of banking, described the securities company as “an important part of Citi’s strategy in China” and said it would strengthen the group’s ability to serve clients. He added that the focus would be on building a local team and drawing on Citi’s global network to support market development. The comments link the unit’s establishment to an expansion of services in China, while the company emphasized that regulatory requirements must be completed before operations begin.
Citi says its relationship with clients in China spans nearly 125 years and that its local presence dates to 1902. The group says it serves 70% of Fortune 500 companies operating in China. It also said it had helped Chinese clients raise more than 40 billion dollars in global capital markets from the start of 2026 through its statement on October 23. These figures provide context for the client base the group says it serves, as the new unit targets providing capital markets services in the country. Citi applied for a license for a wholly owned Chinese brokerage unit in late 2021, according to Reuters.
Reuters reported that Citi aims to roughly double the unit’s headcount to about 100 employees by the end of 2026. The target coincides with the regulator’s deadline for commercial registration, while starting operations also requires the operating license to be issued after an application is filed within the prescribed period. The regulator required the company to comply with rules governing cross-border flows of securities business data and investors’ personal information. Requirements also included protecting investors’ rights and ensuring the security and stability of important systems. The Associated Press included the approval among Beijing’s moves to open its financial markets to U.S. companies, following recent approval for Visa to prepare a bank card clearing business in China. The agency added that the Chinese and U.S. presidents are expected to hold two more meetings before year-end to maintain stability in relations strained by the tariff and trade war.
In the market, Citi shares, listed under the ticker C, closed at 120.62 dollars on October 23, 2026. The stock had closed at 122.51 dollars on October 22 and 123.85 dollars on October 21. The closing prices show a decline over the two sessions before the approval date. The data provided do not identify the reason for the share move during that period. The company’s next regulatory milestone is completing commercial registration, then applying for the operating license within the deadlines set out in the decision.