Citi plans to launch a China investment banking unit as early as the end of this year and will hire roughly 30 people to work there, a source with direct knowledge told Reuters on Thursday.
In the coming years, that number could balloon to nearly 100 through local hires and transfers from Hong Kong and elsewhere, the source said; and it’s already hired at least three people — a chief executive, CFO and chief compliance officer — to build out its C-suite.
The bank applied for a wholly owned China brokerage business license in late 2021, and the China Securities Regulatory Commission approved it last month, according to the source, although Citi’s China business plans aren’t yet public.
The CSRC record shows that it “made a decision” on Citi’s application Dec. 28, without further detail.
The bank originally targeted mid-2023 as the unit’s launch, but sources told Bloomberg last month that the delays spurred from time needed to comply with China’s data laws.
Meanwhile, it’s been helping Chinese clients raise funds overseas, and now expects the launch within 18 months, Reuters’ source said.
A Citi spokesperson didn’t respond to Banking Dive’s request for comment. The CSRC also didn’t respond to Banking Dive’s request for comment.
The China push comes as Citi pulls back from a number of other ventures. It’s closing both its municipal business and its distressed-debt business; and it axed thousands of employees from its ranks last year. The changes fall in line with a massive reorganization announced in September.
They also follow Citi’s exit from 13 global retail banking businesses, including China: it sold its wealth management portfolio to HSBC last year for an undisclosed sum.
