Citi has reportedly moved closer to obtaining a wholly-owned China brokerage licence, planning to double the unit's headcount by the end of 2026.
According to Reuters, the approval could arrive around the time Chinese President Xi Jinping is scheduled to visit Washington in late September 2026 to meet US President Donald Trump. Citi has declined to comment on the matter.
Expansion plans and timeline
Citi applied for the mainland Chinese brokerage licence in late 2021, as part of a broader effort to expand its presence in China, the world's second-largest economy. Since then, the bank has been hiring in preparation for the launch. Citi plans to roughly double the unit's headcount to around 100 employees by the end of 2026, combining internal transfers and external hires, including senior front-office bankers and support staff. Some employees are expected to relocate from Hong Kong and other Asian markets, alongside existing mainland China staff moving into the new unit.
Once licensed, the brokerage business would allow Citi to offer A-share brokerage, underwriting, research, and principal trading services in China's onshore market. These services would complement the bank's existing offshore-focused China investment banking operations, which support domestic companies raising financing in overseas markets. In addition, Citi intends to draw on its onshore corporate and commercial banking client base, already served through foreign exchange, cash management, and trade finance offerings, to pursue A-share equity and merger and acquisition mandates. The new unit will focus on sectors including technology, healthcare, consumer, and financial institutions, targeting established domestic companies as well as emerging players in areas such as artificial intelligence and semiconductors.
Competitive landscape
Citi's planned entry would put it in competition with Wall Street rivals already licensed in China, including JPMorgan, Goldman Sachs, and Morgan Stanley, for a share of the country's onshore securities trading and underwriting activity. According to the companies' 2025 annual reports, Goldman Sachs' wholly-owned China securities unit nearly tripled its profit to USD 217.39 million, while JPMorgan's unit's profit almost quadrupled to approximately USD 146.5 million. Morgan Stanley's China securities unit profit rose sevenfold to approximately USD 20.5 million, driven largely by higher securities trading revenue from institutional clients.
Beyond the licensed international banks, Citi would also compete with dominant Chinese domestic brokerages. Some foreign financial firms have scaled back operations in China in the recent past amid a competitive business environment. Furthermore, asset manager Fidelity International has reportedly been planning to wind down a China fund management unit, following Schroders' earlier decision to transfer its onshore team and products to Neuberger Berman.
This week, Citi also announced a 25% headcount increase across South Africa, Europe, and Asia to support North Asian clients, including those from mainland China, with their outbound banking needs.
