Citi has received approval from the China Securities Regulatory Commission (CSRC) to establish a wholly owned securities company in mainland China, advancing the US banking group’s plan to expand its institutional business in the market.
The proposed company, Citigroup Securities (China) Company Limited, or CSCCL, will be headquartered in Shanghai. Citi announced the approval on October 23, 2026, while noting that the venture must complete additional statutory and regulatory procedures before it can begin operating.
What the approval permits
According to Citi, the new company will be able to provide equities brokerage, securities underwriting, research and principal trading services. The license is also expected to give Citi access to China’s securities exchanges and other listed products for its institutional clients.
The scope would allow the group to connect more of its corporate and institutional customers with China’s domestic capital markets. Citi said it intends to build the business around its global network and existing relationships with multinational and Chinese companies.
The approval is significant because securities underwriting and brokerage are regulated activities that require a locally licensed entity. The CSRC has gradually approved wholly foreign-owned securities firms as China has opened more of its financial sector to overseas institutions. The Associated Press also reported the approval and placed it within that broader market-opening process.
Full ownership can give an overseas bank more direct control over strategy, compliance systems and capital allocation than a joint-venture structure. For clients, the practical value will depend on how quickly Citi can build the licensed operation and integrate it with the group’s cross-border services. The approval itself establishes the regulatory basis for that work but does not guarantee the pace or scale of the business.
Citi’s position in China
Citi said it has operated in China for nearly 125 years and currently serves corporate and institutional clients in the country. Its consumer banking exit did not end the group’s broader presence in China, where it continues to offer services including banking, markets, trade finance and cash management.
The bank said it serves about 70 percent of Fortune 500 companies operating in China. It also said it had raised more than $40 billion for Chinese clients in global capital markets during the year to date. Both figures are company-supplied and were not independently verified in the announcement.
A locally licensed securities company could deepen Citi’s ability to support cross-border transactions and domestic fundraising. It would also complement the group’s offshore capabilities for Chinese issuers and investors, rather than replacing the approvals and operating entities required in other markets.
The combination of local securities capabilities and an international banking network may be most relevant to companies raising capital across jurisdictions or managing investments in several markets. Execution will still depend on local staffing, client demand and the regulatory permissions attached to the new entity.
Operations still require further steps
The CSRC approval does not mean the new company is immediately open for business. Citi said CSCCL must complete statutory and regulatory procedures before commencing operations, and it did not announce a start date.
The timing and final operating scope will therefore depend on the completion of those steps. Staffing, capitalization and exchange access may also be subject to further approvals or registrations under Chinese rules.
The move adds Citi to the group of global financial institutions seeking greater control over their mainland China securities operations. The strategic opportunity is substantial, but foreign institutions continue to face strong domestic competition, market cycles and evolving regulatory requirements.
For Citi, the approval creates a platform from which it can offer a wider set of onshore capital-markets services while linking Chinese clients with its international network. The immediate milestone is regulatory; the commercial impact will become clearer only after CSCCL completes its remaining procedures and begins operations.
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