Citi seeks China brokerage license to accelerate expansion

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Citi seeks China brokerage license

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Highlights

Citi could receive its China brokerage license as soon as September.
The unit may grow to around 100 employees by year-end.
Planned services include A-share brokerage, underwriting, and research.

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The approval could arrive around the time of Chinese President Xi Jinping’s planned late-September visit to Washington for talks with US President Donald Trump, Reuters reported. Citi applied for the license in late 2021 and has spent the past several years preparing the business for launch.

Citi prepares for a larger onshore operation

The bank plans to expand staffing at the new unit to roughly 100 people by the end of this year, about double its current level. Hiring is expected to span senior bankers, support roles, and other functions, using a mix of external recruitment, internal transfers, and relocations from Hong Kong and other Asian markets.

The brokerage is seeking approval to conduct A-share brokerage, underwriting, research, and principal trading. Those businesses would complement Citi’s existing China operations, which are more heavily focused on corporate banking, foreign exchange, cash management, trade finance, and offshore investment banking.

Citi is expected to target sectors including technology, healthcare, consumer companies, and financial institutions, with particular interest in established domestic groups as well as AI and semiconductor companies.

Competition is already intense

Citi would enter a market where JPMorgan, Goldman Sachs, and Morgan Stanley already operate wholly owned securities businesses. Those firms benefited from stronger trading and underwriting activity in 2025.

Goldman Sachs reported a profit of 1.46 billion yuan, or about $217 million, at its China securities unit last year. JPMorgan earned 984 million yuan, while Morgan Stanley reported 138 million yuan.

The opportunity is significant, but so is the competition. China’s domestic brokers remain dominant, and some foreign financial groups have recently scaled back or exited local businesses after struggling with margins and market share.

China remains central to Citi strategy

The potential license fits a broader effort by Citi to improve profitability while maintaining access to large international markets. Beijing, despite persistent geopolitical friction with Washington, has continued opening parts of its financial sector to foreign institutions as it seeks capital inflows.

For Citi, the attraction is the chance to connect its existing corporate client base with domestic equity issuance, M&A, and securities services. If approved, the new platform would give the bank a fuller onshore offering and place it in more direct competition for Chinese capital-market mandates.

As we previously reported, Citi to custody Bitcoin for institutional clients.

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