Citi secures China securities licence amid Trump-Xi summit
Citigroup becomes the seventh major foreign bank to operate a wholly owned securities business in China, following a strategic pivot away from retail wealth management towards institutional capital markets.
Beijing has approved Citigroup’s application to operate a wholly owned securities business in China, concluding a regulatory process that has spanned more than four years. The decision was reported on the eve of US President Donald Trump’s summit with President Xi Jinping, a diplomatic engagement that marked the first visit by an American president to China since 2017. Citigroup shares rose following the announcement, as the bank joins an exclusive group of foreign financial institutions granted full ownership of Chinese brokerage operations.
Citigroup CEO Jane Fraser attended the summit in Beijing as part of the US delegation, alongside other prominent technology executives. While it remains unclear whether Fraser’s presence influenced the timing of the regulatory approval, the bank had filed its application with the China Securities Regulatory Commission in December 2021. The regulator did not formally accept the application for review until December 2023, according to Caixin Global.
The approval allows Citigroup to underwrite stock and bond offerings, conduct clearing operations, and pitch domestic issuers without sharing fees with a local partner. This capability aligns with the bank’s strategic shift under Fraser, who has focused on expanding institutional services while reducing its retail footprint. In 2024, Citigroup sold its onshore consumer wealth portfolio to HSBC, further consolidating its resources for capital markets activities.
Citigroup becomes the seventh major foreign bank to fully own a Chinese brokerage, joining JPMorgan, Goldman Sachs, Standard Chartered, BNP Paribas, Mizuho, and UBS. China removed its foreign-ownership cap on securities firms in April 2020, with JPMorgan and Goldman Sachs receiving approvals shortly thereafter in August and October of that year. Citi’s competitors moved significantly faster to secure licences following the policy change.
The new licence addresses a gap in Citigroup’s operations that emerged after it exited a joint venture with Orient Securities in 2019. The bank had been unable to negotiate majority control in the partnership, a constraint that persisted until the regulatory environment shifted. The approval provides Citi with direct access to China’s onshore capital markets, which Fraser has previously cited as critical for supporting cross-border deals for institutional clients.
Citigroup, which opened in Shanghai in 1902 and was historically known as the "Flower Flag" bank, now holds a licence that enables broader participation in the country’s financial sector. The summit, which concluded on 15 May 2026, also covered discussions on trade, artificial intelligence, and tensions in the Strait of Hormuz. Citigroup did not immediately respond to requests for comment regarding the approval.
