After its consumer banking exit in China, Citi will accelerate the growth of its mainland institutional business with the reported pursuit of new licenses.
Citi plans to submit an application for a securities and futures brokerage license, according to a report citing unnamed sources, with a focus on underwriting yuan-denominated shares and client trading.
The American bank plans to submit the application within the next two months with the aim of launching for business in 12 to 18 months.
A chief executive for the business will soon be named and 50 staff will be initially hired before doubling in the longer term, the report added. Most hires will be external but staff from other mainland businesses will also be transferred.
Citi is a relative latecomer in terms of expansion in China compared to its rivals which have announced ambitious goals to double or even triple headcount in the historic opening of the mainland’s $54 trillion financial market.
The bank also recently announced its planned retail banking exit in China as part of a broader pullback across markets in Asia and EMEA.
Currently, Citi has a bond underwriting and settlement license as well as a domestic custody license received last year.
