Citi may seek China brokerage unit licence this month, sources say

• Citi applied for the mainland Chinese brokerage license in late 2021 and has been hiring in preparation, aiming to reach around 100 staff by end of 2026 through internal transfers and external hires
• Wall Street rivals' China securities units saw significant 2025 profit growth: Goldman Sachs nearly tripled to 1.46 billion yuan ($217 million), JPMorgan quadrupled to 984 million yuan, and Morgan Stanley increased sevenfold to 138 million yuan
• The new unit will focus on A-share underwriting and trading, targeting sectors including technology, healthcare, consumer, financial institutions, AI and chip companies, complementing Citi's existing offshore China investment banking team

Summary: Citi Seeks China Brokerage License Amid Wall Street Expansion

Key Development:

Citigroup expects regulatory approval for its wholly-owned China brokerage unit as soon as September 2026, with approval potentially coinciding with Chinese President Xi Jinping's planned late-September visit to Washington. The bank applied for the license in late 2021.

Expansion Plans:

• Citi aims to double headcount at the new unit to approximately 100 staff by year-end
• Hiring will include senior front-office bankers and support staff through internal transfers and external recruitment
• Staff will be relocated from Hong Kong, other Asian markets, and existing mainland operations

Business Focus:

The new unit will target A-share underwriting and securities trading, complementing Citi's existing offshore-focused China investment banking operations. Key sectors include technology, healthcare, consumer, financial institutions, AI, and chip companies. The bank plans to leverage its established onshore corporate and commercial banking client base.

Competitive Landscape:

Citi will compete against already-licensed Wall Street rivals whose China securities units posted strong 2025 results:

• Goldman Sachs: CNY 1.46 billion profit (nearly tripled)
• JPMorgan: CNY 984 million (nearly quadrupled)
• Morgan Stanley: CNY 138 million (increased sevenfold)

Market Context:

The expansion occurs as China opens its financial sector to attract capital inflows despite Sino-U.S. tensions. However, the market remains hyper-competitive, with some foreign firms recently exiting—Fidelity International planning to exit its China fund management unit and Schroders transferring operations to Neuberger Berman.

The move aligns with CEO priorities for stronger profitability targets over the next two years.