After announcing an exit from 13 markets including India and China, Citigroup is planning a comeback. But this return is only to China, according to a Bloomberg report. The investment bank is looking at setting up new investment banking and trading operations in China.
While the lender announced an exit from China’s retail operations, it is now looking at making bucks from the business to business operations.
US-based financial services may soon submit an application for a securities license to allow it to underwrite yuan-denominated shares and license for futures brokering. It will be conducting trading for clients as well.
Within two year’s, the lender is looking at establishing and running the business. It plans to hire a chief executive officer for China operations and 50 people will be hired initially with a plan to grow to about 100. Other than hiring new talents, the lender may move staff from its existing operations to this new business.
After the country lifted foreign ownership restrictions, many financial entities entered China and Citigroup is expected to be the latest entrant into China’s securities market.
The report claimed that Citigroup is expanding in wealth management. It announced plans to hire more than 300 relationship managers in Hong Kong to double its assets by 2025. In March, it said it would hire up to 1,700 staff in the financial hub. The bank serves close to 1,000 multinationals with operations in China and more than 350 local corporates.