Citibank China to raise number of wealth management offerings

Citibank China Co Ltd plans to expand its wealth management business across the nation, it said at a news conference on Friday in Shanghai.

Jonathan Larsen, Citi's global head of retail banking, said that as China's affluent population increases, the wealth management market has significant potential for growth.

On June 26, Citi China became one of the first foreign banks allowed to sell domestic mutual funds in the country.

In July, the company distributed its first domestic mutual funds in China, and it now offers some 20 mutual fund products from five fund companies.

As a major global retail bank, Citi provides consultancy services based on insights into clients' investment goals, risk tolerance and research and understanding of the wealth management market, Larsen said.

In terms of local mutual funds distribution, China has great potential and will likely have a fast-growing market because investors favor local options and the stock market may see another round of good opportunities as reforms deepen, said Wang Ying, Citi China's head of wealth management, global consumer banking.

The bank has also been expanding its product lines in the retail banking sector in China.

"So far, Citi China has obtained all the approvals to offer products under various wealth management product categories," said Simon Chow, Citi China's executive vice-president and country business manager of global consumer banking.

"The bank is planning to issue two more types of credit cards in China."

Chow said that 23 new outlets were added to Citi China's network in the past couple of years, some of which are located in major traffic hubs, including subway stations and airports, to reach clients and bring them innovative services.

He added the bank will add more outlets to meet market demand, but he didn't provide details about the network expansion.

On Sept 29, Citi China said it received approval from the China Banking Regulatory Commission to start preparations for a sub-branch in the China (Shanghai) Pilot Free Trade Zone. The bank is one of the first foreign banks that has been allowed to operate in the free trade zone.

The new sub-branch will provide a complete suite of banking products and services to companies and individuals in the free trade zone, with both foreign and local currencies under the regulatory framework

The approval shows the regulators' and market's recognition and confidence in Citi China, said Ricky Lin, Citi China's managing director of retail banking.