SKN | Citi Secures Approval for Wholly Owned China Securities Business, Deepening Its Onshore Strategy

Key Takeaways:

• Citi has received approval from China’s securities regulator to establish a wholly owned securities company, expanding its direct access to mainland capital markets.
• The Shanghai-headquartered business is expected to provide equities brokerage, securities underwriting, research, investment advisory, and principal trading to domestic and international clients.
• The approval advances a licensing effort initiated in 2021 and strengthens Citi’s ability to connect clients’ Chinese-market activity with its global banking and capital-markets network.

Citigroup has secured regulatory approval to establish a wholly owned securities business in mainland China, marking a significant development in the bank’s strategy to deepen its onshore capabilities. Announced on October 23, 2026, the approval from the China Securities Regulatory Commission allows Citi to move toward establishing Citigroup Securities (China) Company Limited, headquartered in Shanghai.

For Citi, the development is about expanding the services it can deliver directly within China’s domestic securities market. Rather than relying solely on its existing international platform, the bank will be able to build a more comprehensive onshore offering for corporate, institutional, and other eligible clients once the remaining regulatory procedures are completed.

Citi Expands Its Direct Access to China’s Capital Markets

The new entity is expected to provide equities brokerage, securities underwriting, securities research, investment advisory, and principal trading. Its proposed activities also include underwriting capital-markets transactions and trading onshore-listed shares, bonds, funds, and other financial instruments.

These capabilities would complement Citi’s existing international banking and capital-markets operations. The bank’s stated objective is to help clients raise capital, reach investors, and trade locally while connecting their activities with opportunities across global markets.

For multinational companies and institutional investors, the significance lies in having a broader range of services delivered through Citi’s own locally established securities business. The approval creates the regulatory foundation for this expansion, although actual operations remain subject to completion of the required statutory and regulatory procedures.

A Long-Term Commitment Moves Closer to Implementation

Citi applied for the wholly owned securities licence in late 2021 and has been developing the business over the intervening years. Reuters reported that the bank had been building its team and aimed to approximately double its workforce to around 100 employees by the end of 2026.

The hiring objective indicates that Citi has been preparing operational capacity alongside its licensing effort. However, the approval alone does not establish how quickly the new business will reach scale, generate revenue, or achieve profitability.

Citi has described the securities company as part of its broader commitment to China. The bank says it has served clients in the country for nearly 125 years, giving the new venture an established institutional history to build upon.

What the Approval Means for Citi’s Global Client Franchise

The licence could strengthen Citi’s ability to serve clients whose financing, investment, and capital-raising requirements cross national borders. By adding onshore securities capabilities to its existing global network, the bank aims to provide a more connected service model for Chinese companies seeking international capital and foreign institutions accessing domestic markets.

Nevertheless, regulatory approval is a starting point rather than proof of commercial success. Citi will still need to establish the business, develop client relationships, and compete within China’s securities industry. The practical value of the expansion will depend on execution, client demand, and the bank’s ability to translate its international reach into sustainable local business.

For internationally active wealth holders and institutional clients, Citi’s move reinforces the importance of evaluating both local market access and the cross-border capabilities of a banking partner. The next milestones will be the completion of regulatory procedures and the commencement of operations.

For a confidential discussion regarding your cross-border banking structure and global wealth management arrangements, contact our senior advisory team.