Citi awarded domestic fund custody license in China
02 September 2020 Shanghai
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Citi China has been granted a domestic fund custody license from the China Securities Regulatory Commission (CSRC).
The license will enable Citi to provide custody-related services to both mutual funds and private funds domiciled in China, once it has passed CSRC’s onsite inspection later this year.
From 1 April this year, global fund managers have been able to apply to the CSRC to own 100 percent of their fund management company, which enables them to create and distribute mutual funds to the retail investor market in China.
China’s markets offer opportunities for global market participants, but it remains complex and requires careful navigation, according to Citi.
Christine Lam, president and CEO of Citi China, commented: “As the first American bank to be granted a domestic fund custody license, we’re proud to be able to help our global clients gain access to China’s capital markets which are experiencing a new round of comprehensive reforms.”
“We are pleased to play an ongoing role in the development of China’s financial markets. This license is further validation of China’s commitment to continue to open up its financial markets,” added Stuart Staley, head of markets and securities services, Citi Asia Pacific.
David Russell, Citi’s Asia Pacific, head of securities services, said: “Citi’s China domestic fund custody license is great news for our global clients. As international fund managers, securities firms, and insurance companies set up in China, we believe they will want a trusted service provider to help them mitigate risks and reduce costs.”
Russell added: “We have invested significantly in our securities services operations in Shanghai, and we plan to continue building up our local capabilities to meet our clients’ increasing demand in China, such as fund administration and other outsourcing services.”
The license will enable Citi to provide custody-related services to both mutual funds and private funds domiciled in China, once it has passed CSRC’s onsite inspection later this year.
From 1 April this year, global fund managers have been able to apply to the CSRC to own 100 percent of their fund management company, which enables them to create and distribute mutual funds to the retail investor market in China.
China’s markets offer opportunities for global market participants, but it remains complex and requires careful navigation, according to Citi.
Christine Lam, president and CEO of Citi China, commented: “As the first American bank to be granted a domestic fund custody license, we’re proud to be able to help our global clients gain access to China’s capital markets which are experiencing a new round of comprehensive reforms.”
“We are pleased to play an ongoing role in the development of China’s financial markets. This license is further validation of China’s commitment to continue to open up its financial markets,” added Stuart Staley, head of markets and securities services, Citi Asia Pacific.
David Russell, Citi’s Asia Pacific, head of securities services, said: “Citi’s China domestic fund custody license is great news for our global clients. As international fund managers, securities firms, and insurance companies set up in China, we believe they will want a trusted service provider to help them mitigate risks and reduce costs.”
Russell added: “We have invested significantly in our securities services operations in Shanghai, and we plan to continue building up our local capabilities to meet our clients’ increasing demand in China, such as fund administration and other outsourcing services.”
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