We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Citigroup (C) to Establish Investment Banking Unit in China
Read MoreHide Full Article
Citigroup (C - Free Report) is likely to launch a wholly-owned investment banking unit in China within the next 12-18 months. The unit will hold job positions for around 30 employees initially, which is expected to increase to almost 100 in the upcoming years. This was first reported by Reuters.
Per a source familiar with the matter, C has already hired three people for senior management roles of chief executive officer, chief financial officer and chief compliance officer for the unit.
Markedly, in the latter half of 2021, the bank had applied for a wholly-owned brokerage business license in China as C intended to enhance its presence in the market. Per a source familiar with the matter, the China Securities Regulatory Commission (“CSRC”) approved the application in December 2023.
Wall Street biggies, including JPMorgan Chase & Co. (JPM - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) , already have well-established investment banking units in the country. In fact, JPM has been attempting to expand its business in China. Last year, it received regulatory approval from CSRC to complete its acquisition of the China fund manager, China International Fund Management Co., Ltd.
Also, JPM was the first foreign bank to fully own a futures company in China. Last year, CSRC accepted Morgan Stanley’s (MS - Free Report) application to set up a futures company in the country. With this, MS will become the second foreign bank to wholly own a futures business in the world’s second-largest economy.
China is one of the broadest and deepest growth markets outside the United States. Hence, expansion efforts in the country are a strategic fit for Citigroup and will support its top-line growth amid plans of exiting its global distressed-debt trading business as well as its municipal bond business.
Through such business exits the company intends to revamp its operations as well as its organizational structure.
Particularly, since April 2021, the bank has been emphasizing growth in core businesses by shrinking international operations. It remains on track to exit the consumer banking business in several international markets.
Citigroup’s efforts to simplify governance structure involve eliminating various management layers to improve efficiency. Accordingly, leaders of each of C’s five main businesses will be members of the Executive Management team and report directly to Jane Fraser, the chief executive officer of C. This move is expected to increase accountability and ensure a swifter decision-making process.
In line with the organizational realignment, in November 2023, Citigroup commenced the elimination of various jobs.
Citigroup’s shares have gained 32.5% in the past three months compared with the industry’s 23.9% growth.
Image: Bigstock
Citigroup (C) to Establish Investment Banking Unit in China
Citigroup (C - Free Report) is likely to launch a wholly-owned investment banking unit in China within the next 12-18 months. The unit will hold job positions for around 30 employees initially, which is expected to increase to almost 100 in the upcoming years. This was first reported by Reuters.
Per a source familiar with the matter, C has already hired three people for senior management roles of chief executive officer, chief financial officer and chief compliance officer for the unit.
Markedly, in the latter half of 2021, the bank had applied for a wholly-owned brokerage business license in China as C intended to enhance its presence in the market. Per a source familiar with the matter, the China Securities Regulatory Commission (“CSRC”) approved the application in December 2023.
Wall Street biggies, including JPMorgan Chase & Co. (JPM - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) , already have well-established investment banking units in the country. In fact, JPM has been attempting to expand its business in China. Last year, it received regulatory approval from CSRC to complete its acquisition of the China fund manager, China International Fund Management Co., Ltd.
Also, JPM was the first foreign bank to fully own a futures company in China. Last year, CSRC accepted Morgan Stanley’s (MS - Free Report) application to set up a futures company in the country. With this, MS will become the second foreign bank to wholly own a futures business in the world’s second-largest economy.
China is one of the broadest and deepest growth markets outside the United States. Hence, expansion efforts in the country are a strategic fit for Citigroup and will support its top-line growth amid plans of exiting its global distressed-debt trading business as well as its municipal bond business.
Through such business exits the company intends to revamp its operations as well as its organizational structure.
Particularly, since April 2021, the bank has been emphasizing growth in core businesses by shrinking international operations. It remains on track to exit the consumer banking business in several international markets.
Citigroup’s efforts to simplify governance structure involve eliminating various management layers to improve efficiency. Accordingly, leaders of each of C’s five main businesses will be members of the Executive Management team and report directly to Jane Fraser, the chief executive officer of C. This move is expected to increase accountability and ensure a swifter decision-making process.
In line with the organizational realignment, in November 2023, Citigroup commenced the elimination of various jobs.
Citigroup’s shares have gained 32.5% in the past three months compared with the industry’s 23.9% growth.
Image Source: Zacks Investment Research
C presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.