Citi Plans Launch of China Investment Banking Unit, Aiming for 30 New Hires by End of 2024

Citigroup Inc is set to initiate its wholly owned China investment banking unit, potentially by the end of this year, with plans to hire approximately 30 individuals for the business, according to a source with direct knowledge of the matter.

The Wall Street bank envisions expanding the unit’s staff, which will primarily focus on the domestic capital market, to nearly 100 in the coming years. This growth will be achieved through a combination of local hires and transfers from Hong Kong and other markets, as stated by the source.

Having applied for a wholly owned mainland Chinese brokerage business license in late 2021, Citi received approval from the Chinese securities regulator to proceed with setting up the unit last month, as per the source. The China Securities Regulatory Commission (CSRC) confirmed its decision regarding Citi’s application on Dec. 28, without providing further details.

While a Citi spokesperson declined to comment, the CSRC did not respond to Reuters’ request for comment.

This move positions Citi alongside other Wall Street giants such as Goldman Sachs, JPMorgan, and Morgan Stanley, all of whom have bolstered their equity holdings in local brokerage businesses in recent years.

Despite economic challenges and U.S.-China tensions impacting foreign investment in Chinese equities last year, the domestic initial public offering (IPO) market remained robust, ranking as the busiest globally for the second consecutive year in 2023.

Citi, which has been aiding Chinese clients in raising funds overseas, aims to launch the China investment banking unit within 12 to 18 months. The bank’s Chinese clients raised approximately $20 billion last year in equity and debt capital overseas through Citi.

Key leadership positions for the China investment banking unit, including the CEO, CFO, and CCO, have already been filled, with an additional 30 staff expected to join by the end of this year. Citi is also engaged in discussions with Chinese regulators regarding data compliance, an essential aspect of the business’s infrastructure build-out. This expansion aligns with Citi’s broader global restructuring and its commitment to enhancing its presence in the Chinese market.

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