China Approved Citigroup’s Securities Unit After Nearly 5 Years. Here’s Where the Stock Could Go by 2030

Citigroup (C) has sold 49% of Banamex, with plans for an IPO. Analysts met Banamex executives to prepare for the IPO, which may occur in early 2027. Banamex recently sold $900M in capital bonds. Citi's exit from Banamex will result in $9B in unrealized losses, but regulatory capital impact is neutral.

China's CSRC approved Citigroup's plan to establish a wholly-owned securities firm in Shanghai, with 1.2 billion yuan in capital. This allows Citi to offer capital markets services, including equities brokerage and securities trading. Citi becomes the seventh foreign firm to operate independently in China, following others like J.P. Morgan and Goldman Sachs. The move aligns with China's push to open its financial sector to foreign institutions.

China's securities regulator approved Citigroup's plan to establish a fully-owned securities unit in Shanghai, allowing the bank to expand its onshore capital markets services. The unit, Citigroup Securities China Company, will offer services like underwriting and trading. Citigroup aims to double its team to around 100 people by year-end. The bank reported Q3 earnings of $5.2 billion, with revenue up 8% and return on tangible common equity at 11.5%.

China approved Citigroup's application to operate a wholly owned brokerage in Shanghai, ending a five-year process. The bank can now underwrite securities, trade, and provide advisory services in China's capital market. This makes Citigroup the seventh foreign firm with full ownership of a mainland brokerage.

Citigroup (C) received approval to operate a wholly owned securities business in China, becoming the seventh foreign firm with such a license. Q3 revenue rose 8% to $23.8B, net income jumped 40% to $5.2B, and EPS was $2.85, exceeding estimates. The company plans a Banamex IPO for January, targeting over $3B in proceeds. Shares are down 1.1% and 17% below their 52-week high.

China's securities regulator approved Citigroup's plan to establish a wholly-owned securities firm in the country. The firm, Citigroup Securities (China) Company Limited, will be based in Shanghai with 1.2 billion yuan in registered capital. This move aligns with China's efforts to open its financial sector to foreign institutions.