WASHINGTON (AP) — Citi said on Friday it has received approval from Chinese regulators to set up a wholly owned securities company in the world's second largest economy, just about one month after Chinese leader Xi Jinping met President Donald Trump in Washington to keep U.S.-China ties stable.
The approval, which was also announced on the same day by the China Securities Regulatory Commission, followed a recent approval by Beijing for the U.S. payments giant Visa to prepare to set up a bank card clearing business in China.
The moves by Beijing to open its financial market to U.S. companies have come as the two leaders are expected to meet two more times by the year's end to maintain the fragile ties battered by a tariff and trade war.
In a statement, Citi, a major U.S. financial services provider, said the onshore securities license will allow Citi — through the new entity — to offer equities brokerage, securities underwriting, securities research and principal trading services to domestic and foreign clients.
Citi says it has a "sizable corporate and institutional client base looking to access the Chinese capital markets."
Wenjie Zhang, Citi's country officer and banking head for China, called the securities company "an important part of Citi's strategy in China."
Jane Fraser, Citi's chief executive officer, was part of the U.S. business delegation that accompanied Trump on his May trip to Beijing. She was also a guest at the state dinner that Trump hosted for Xi in the White House last month.