Caixin
Jul 30, 2021 06:58 PM
FINANCE

Citigroup’s China Unit Gets Nod to Launch Onshore Fund Custody Services

What’s new: A Citigroup Inc. subsidiary in China on Thursday won final approval from the country’s securities regulator to launch securities investment fund custody services onshore, the company said in a press release.

The nod, which came 11 months after it got an initial permit from the China Securities Regulatory Commission (CSRC), allows Citibank (China) Co. Ltd. to provide custody services for fund products on the Chinese mainland, namely holding fund assets for safekeeping.

Launch of the services can give Citigroup’s global clients greater access to the increasingly liberalized Chinese capital markets, said Christine Lam, CEO of Citibank (China).

The background: Citigroup is a leading player in the global custodian industry. Others include The Bank of New York Mellon Corp., State Street Corp., JPMorgan Chase & Co., and Northern Trust Corp.

Until recently, Standard Chartered Bank (China) Ltd. was the only foreign company with the license to offer such services on the Chinese mainland, according to public records (link in Chinese) from the CSRC.

Last year, HSBC Bank (China) Co. Ltd. and Deutsche Bank (China) Co. Ltd. also applied for the license, with the latter winning an initial permit in December.

China is one of the world’s largest fund domiciles and a favorite destination for global investors, as liberalization of its economy continues. Some of the biggest Wall Street banks and asset managers, including Goldman Sachs Group Inc. and BlackRock Inc., have been stepping up their presence in the country’s multitrillion-dollar financial market in recent years.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact editor Lin Jinbing (jinbinglin@caixin.com)

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