Insight & Analysis

Press release: Citi selected to offer FMDB services in China

Published: Sep 2023

14th September 2023 – Citibank (China) Co. Ltd. (“Citi China”) has received approval from the Shanghai Futures Exchange (SHFE) and International Energy Exchange (INE) to act as a Futures Margin Depository Bank (FMDB) for its Qualified Foreign Investor (QFI) clients to trade commodity futures on the SHFE and INE. Citi is the first American bank to receive this approval.

Press release news paper

“The relaxed QFI regulation provides exciting new ways for global investors to participate in China’s capital markets. With this newly added capacity to serve as a futures margin depository bank, Citi China is well positioned to offer a best-in-class platform for our clients globally and help them navigate and capitalize these tremendous opportunities in the ongoing opening-up of the Chinese capital markets,” said Christine Lam, Chief Executive Officer of Citi China.

“The strength of our custody business lies in our ability to deliver local solutions and proactive engagement to expand offering as new products are enabled. Our in-depth understanding of the market, client-centric mindset, heightened engagement with market infrastructures has helped us gain the approvals from SHFE and INE, reinforcing Citi’s position as one of the top custodians in China,” Aditya Sharma, Citi’s Asia Pacific Head of Custody, commented.

Citi continues to expand its product offering to support the emerging needs of clients as opportunities emerge and has been building its product and service offerings in China. Citi has invested significantly in its Securities Services operations in Shanghai and plans to continue building up its local capabilities to meet clients’ increasing demand in China.

Citi has been a leading custodian services provider in China for Qualified Foreign Investors (QFI) and has more than 20 years of experience in China’s capital market cross-border custody services, having witnessed the opening up of China’s capital markets. Citi is one of the few banks who can offer a complete end-to-end solution to international investors investing in China, whether it’s through equity or fixed income, directly (QFII, RQFII, and CIBM direct scheme) or via Hong Kong (Stock Connect and Bond Connect), from trading and research to custody, clearing and settlement. Citi has the complete set of licenses and capabilities in China to enable these transactions on the ground.

With over US$27.8 trillion1 of assets under custody and administration and the industry-leading proprietary network spanning over 63 markets, Citi Securities Services provides clients with extensive on-the-ground local market expertise, advanced processing technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients’ needs.

  1. As of 30 June 2023.

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