China maintains pace in the opening of its financial sector with the latest issuance of fund custody license for Citigroup.
Citi received the domestic fun custody license yesterday, according to the China Securities Regulatory Commission, marking the first foreign firm to obtain such approval in the mainland.
«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,» said David Russell, Citi’s APAC head of securities services, in a statement.
Citi’s entry into fund custody will be accompanied by other foreign entrants in China’s asset management industry. Most recently, Blackrock became the first global asset manager to obtain approval to set up a mutual fund unit in China. Others have signaled bullishness in the mainland even over traditional regional hubs, like Vanguard which is shifting its Asia headquarters to Shanghai while closing its Hong Kong and japan operations.
