Citibank Plans to Launch Investment Banking Unit in China this year

Citi is reportedly set to launch a new investment banking unit in China, with plans to hire approximately 30 people and key executive hires already in place. This move comes as Citi restructures its businesses in other locations.

Citi is set to expand its presence in China with the launch of a new investment banking unit, according to a source with direct knowledge. The bank plans to hire approximately 30 people initially, with the potential for that number to grow to nearly 100 in the coming years through local hires and transfers from Hong Kong and other locations. The new unit has already made key hires for its C-suite, including a chief executive, CFO, and chief compliance officer.

The bank's application for a wholly owned China brokerage business license was submitted in late 2021 and approved by the China Securities Regulatory Commission last month. While Citi's specific plans for its China business have not been made public, the approval from the CSRC indicates progress towards the establishment of the new unit. The bank had initially targeted a mid-2023 launch for the unit, but delays related to compliance with China's data laws have pushed the expected launch timeline to within the next 18 months.

Despite its expansion in China, Citi has been scaling back in other areas. The bank has announced the closure of its municipal business and distressed-debt business, as well as significant layoffs in the past year. These changes are part of a broader reorganization effort announced in September, which also included the sale of its wealth management portfolio in China to HSBC.

The move to establish a new investment banking unit in China reflects Citi's strategic focus on expanding its presence in key markets, despite the challenges posed by regulatory compliance and organizational restructuring.