Citi has received approval from the China Securities Regulatory Commission (CSRC) to set up a wholly owned capital markets firm on the mainland.

The new entity, Citigroup Securities (China) Company Limited (CSCCL), will be headquartered in Shanghai.

Once it is set up, CSCCL will offer equities brokerage, underwriting, research and principal trading. It will serve domestic and foreign clients.

Before that, however, Citi must complete the legal and regulatory steps needed to open the firm.

The firm will underwrite deals onshore and give clients direct access to China’s stock exchanges.

In addition, it will offer investment advice and trade onshore shares, bonds, funds and other products.

These services will add to the work Citi already does for Chinese clients offshore.

According to the bank, it has helped these clients raise more than US$40 billion in global markets this year.

Citi has served clients in China since 1902. The bank says it now serves 70% of Fortune 500 companies operating in the country.

It also works with several hundred large local firms and public sector clients. Meanwhile, its Commercial Bank supports mid-sized enterprises.

CSCCL will support these clients as they seek access to China’s capital markets.

Citi plans to build a local team for the firm and draw on its global network to support the development of China’s domestic capital markets.

“Citi has been serving clients in China for nearly 125 years, and we appreciate the support from regulators to expand our offering in this important market,”

said Jane Fraser, Chair and Chief Executive Officer at Citi.

“We will be focusing on building a high-caliber local team and leveraging our global network to support domestic capital market development,”

said Wenjie Zhang, Country Officer and Banking Head for China at Citi.

Featured image: Edited by Fintech News Hong Kong, based on image by Citi Group via its website and Auyob Masih via Magnific.