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Citi Group receives domestic fund custody licence from Chinese regulator

A Citigroup China unit has received a domestic fund custody licence from China Securities Regulatory Commission, the bank said, latest foreign financial firm to expand its presence in mainland China

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Citi | China

Reuters  |  HONG KONG 

citigroup, banks

HONG KONG (Reuters) - A Citigroup unit has received a domestic fund custody licence from the Securities Regulatory Commission, the bank said on Wednesday, the latest foreign financial firm to expand its presence in mainland

is the first U.S. bank to receive such a licence, which will allow it to hold securities for safekeeping on behalf of mutual funds and private funds domiciled in China, once it has passed an onsite inspection.

Despite Sino-U.S. political tensions, several U.S. asset managers are expanding their presence in China, after foreign ownership restrictions were scrapped earlier this year.

BlackRock last week became the first global asset manager to win regulatory approval to set up a mutual fund unit in China, and Vanguard Group announced it would shift its Asian headquarters to Shanghai and close its Hong Kong and Japan operations.

"As fund managers, securities firms, and insurance set up in China, we believe they will want a trusted service provider to help them mitigate risks and reduce costs," David Russell, Citi's APAC Head of Securities Services, said in a statement.

 

(Reporting by Alun John; Editing by Stephen Coates)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, September 02 2020. 09:04 IST
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