Citi, Visa still matter to China, and vice versa
V•China approved Citigroup to establish a wholly owned securities company and allowed Visa to begin preparations for a domestic bank card clearing institution. The approvals come as China seeks pragmatic cooperation with the United States.
1. China approvals
China approved Citigroup to establish a wholly owned securities company and gave Visa permission to begin preparations for a domestic bank card clearing institution. The approvals followed Xi Jinping’s state visit to the United States; Citi’s Jane Fraser and Visa’s Ryan McInerney joined a US delegation to China in May.
2. Different opportunities
Visa’s opportunity in China now lies less in displacing payment apps, which represent nearly 90% of retail spending, than in facilitating cross-border payments. UnionPay, which handles about 95% of the country’s card spending, has partnered with Visa on international remittances and tourism payments. Citi is re-entering onshore investment banking after leaving its joint venture with Orient Securities in 2019; its new licence fills a gap in a franchise that is its second largest internationally after the UK.
3. Foreign firms’ prospects
The article says wholly owned units of Goldman Sachs, JPMorgan and UBS posted sharp profit rebounds in 2025 as market activity recovered and overseas investors returned. By the end of June, foreign investors held 4.66 trillion yuan of Chinese equities, up 26% from December and 60% from the end of 2024.
