Following this announcement, the overall strategy of launching a securities business in China will take longer than expected. The main reason is the fact that the financial institution needs more time in order to comply with the country’s data laws and requirements. The bank will focus on meeting the needs, preferences, and demands of its customers and clients, as staying compliant with the conditions of the market represents an essential step in its development process.
The bank aims to start the China securities business around the end of 2024 at the earliest. With no timetable being set, Citigroup had already internally estimated that the license would be in place in mid-2023. The financial institution declined the comment on the report as it will continue to expand in the region.
US-based preeminent banking partner for financial institutions and enterprises, Citi had multiple partnerships and product launches in the last couple of months, covering several different geographic areas around the world.
At the beginning of October 2023, Citi announced its decision to sell the onshore consumer wealth portfolio in the region of China to the HSBC Bank China, as part of its broader worldwide strategy refresh. Following this announcement, the clients, assets under management (AUM), and deposits that were included in the onshore customer wealth portfolio were expected to be sold to the HSBC Bank in China. At the same time, the bank was set to extend its offerings and capabilities to in-scope employees who were supporting China’s local user wealth businesses in the area.
In addition, the transaction covered the total of deposits and investment AUMs of approximately USD 3,6 billion. The deal was expected to close in the first half of the 2024, while the terms and conditions were not disclosed to the public.
Earlier in September 2023, Citi announced the launch of four-set payment solutions that were developed in order to address the needs of its financial institution clients and customers. According to the press release published at the time, the set of capabilities was introduced as part of Citi’s Treasury and Trade Solutions (TTS) services. The four payment offerings were also designed to optimise the overall client experience that financial institutions extended. In addition, it could also be used with minimal, or no implementation work or technology built within its structure.
Included in this suite of payment tools was the ability to initiate payments in over 70 currencies from a single USD account, access to Swift Go, the Confirmed Value Transfer (CVT) features, as well as the possibility to extend the capabilities of Citi’s 24/7 USD Clearing for FIs.
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