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Citi applies for re-entry into China’s investment banking market

Citigroup has applied for a license to set up a fully owned investment bank in China three years after withdrawing from the stock market of the world’s second-largest economy, according to those who are directly aware of the issue. bottom.

Banks on Wall Street sold their shares in City Orient Securities in 2019, seven years after the joint venture was established.This move is by the city New majority-owned business This has the potential to provide investment banking services such as debt and equity underwriting in mainland China, but has since led to market progress behind rival banks that are strengthening control of land-based joint ventures. rice field.

Citi said: “We continue to appreciate the opportunity to support the onshore business of our global and local clients.”

Beijing allowed foreign banks to own 51% of China’s domestic securities joint venture for the first time in 2017. Last year, Global Bank announced that it could take full control of its business. Since then, JP Morgan and Goldman Sachs have been approved by Chinese regulators to own 100% of the land securities joint venture.

Citi will be the eighth global bank to offer investment banking services onshore in China if approved to re-enter the market.

But its rivals are Couldn’t make a lot of money Through their own entity in the country. Only Goldman, UBS and Deutsche Bank have made a profit in the last three years. All businesses managed by JP Morgan, Morgan Stanley, Credit Suisse and HSBC report overall losses during that period.

The world’s largest investment bank has long sought to lift ownership restrictions on land businesses. Since then, many have announced plans to expand rapidly, with the aim of doubling personnel and profits in some cases.

Following the disastrous listing of Didi, a ride-haling app in the U.S. in June, China’s crackdown on the overseas listing of the largest companies on data security concerns puts global banks in higher priority to expanding their mainland underwriting operations. became.

Diddy it’s friday Delisted from the New York Stock Exchange Instead, it aims to list on Hong Kong, where signs of China’s dominance over the international strategy of the largest companies are increasing.

Citi applies for re-entry into China’s investment banking market

Source link Citi applies for re-entry into China’s investment banking market

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