Citigroup expects approval for China brokerage unit this month
The bank applied for the license nearly five years ago and has been quietly building a team of about 100 people to compete with JPMorgan and Goldman Sachs on the mainland.
Citigroup is on the verge of receiving final approval for its wholly-owned brokerage unit in mainland China, a milestone that has been roughly five years in the making. The bank applied for the license in late 2021, and the green light could arrive as soon as September 2026.
The timing is worth noting. The expected approval window coincides with a planned diplomatic meeting between Chinese President Xi Jinping and US President Donald Trump in late September, a backdrop that lends additional geopolitical significance to an already consequential business development.
From application to launch: a long runway
Citigroup filed its brokerage license application in late 2021, entering a queue that has tested the patience of several global banks trying to tap China’s onshore capital markets.
By the time preliminary regulatory clearance came through in May 2026, Citi had become the seventh foreign bank to secure a wholly foreign-owned securities license in China.
Citigroup has been actively staffing up, targeting approximately 100 employees for the new unit by the end of 2025 through a combination of internal transfers and fresh hires.
The new brokerage is expected to engage in A-share trading, underwriting, research, and principal trading.
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Competitive landscape: playing catch-up with deep pockets
Citigroup won’t be entering a vacuum. JPMorgan and Goldman Sachs have already established their wholly-owned securities operations in China. Both firms reported increased profitability from their China units in 2025, driven by a surge in deal flow that followed the country’s gradual market opening.
The key regulatory shift came in 2020, when China lifted restrictions on foreign ownership in securities firms. Before that, global banks were forced into joint ventures with local partners, often capping their stakes and limiting their control.
The strategic pivot is clear when you look at Citi’s recent moves in China. The bank exited its consumer banking and wealth management business in the country in 2024, choosing to focus exclusively on institutional markets.
Why the timing matters beyond the boardroom
The diplomatic context adds another layer. Approval arriving around the same time as a Xi-Trump meeting would fit a pattern where economic concessions and market access announcements serve as goodwill gestures during high-level diplomacy.
With seven foreign banks now holding wholly-owned securities licenses, China’s brokerage market is becoming increasingly international.
Citi’s roughly 100-person team will be small relative to domestic Chinese brokerages, which can field thousands of employees. But the bank’s edge lies in its global network and cross-border capabilities, connecting Chinese issuers with international capital and vice versa.