Citigroup gets regulatory nod for fund custody business in China

CitiGroup Building. Photo: Mint

Citigroup said on Friday it had become the first major global custodian allowed to operate an onshore fund custody business in China, tapping into the country’s $19 trillion asset management industry.

Citibank (China) Co Ltd obtained approval from the China Securities Regulatory Commission (CSRC), Citi said in a statement.

China is accelerating opening up its capital markets despite rising Sino-U.S. tensions.

The Citi announcement came on the same day an Allianz unit got Chinese regulatory approval to become the country’s first wholly foreign-owned insurance asset management company. Earlier this week, China’s financial hub Shanghai unveiled measures to become a global asset management centre by 2025.

“We look forward to servicing global asset managers as they establish onshore China business and to work with domestic asset managers as they grow their businesses onshore and globally,” David Russell, Citi’s APAC Head of Securities Services and Hong Kong Markets Head, said in a statement.

Citi China Chief Executive Christine Lam said the bank will leverage its strengths in cross-border services, and bring best practices to the Chinese market.

Citi has been providing cross-border securities services in China for more than two decades and plans to expand its investment banking business in the country.

The Wall Street bank plans to set up local securities and futures companies in China, a person with direct knowledge of the matter told Reuters in April.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.