Citibank granted domestic fund custody licence in China

The bank can now provide custody services to Chinese mutual and private funds.

Citibank has received a domestic fund custody licence from the China Securities Regulatory Commission (CSRC), the first US bank to be granted, according to a statement.

This licence will allow Citi to provide custody-related services to both mutual funds and private funds domiciled in China, after passing CSRC’s onsite inspection later this year.

Citi has fully participated in the development of China’s QFII/RQFII, QDII/RQDII, CIBM and Bond Connect schemes, including policy recommendation, investor education, and market advocacy.

In 2019, China announced details to allow foreign entities to own 100% of securities, futures, fund management and insurance businesses in the country.

Photo courtesy of Magrealthkoo from Wikimedia Commons.