Ken Griffin’s Citadel Securities handed in its application to establish a brokerage in mainland China, paving the way for expansion while most Wall Street firms are struggling to navigate the country’s markets.
The U.S. firm’s request was received by the China Securities Regulatory Commission on Jan. 17, according to a filing posted on the regulator’s website.
Citadel is trying to build its own operation in China after failing to buy Credit Suisse’s onshore business last year. It hired Tony Tang, BlackRock’s former China head, in September 2023 to navigate the increasingly complex regulatory landscape.
The Miami-based firm, led by Chief Executive Officer Peng Zhao, is going against the grain as most foreign financial institutions have scaled back in China.
Building a business from scratch in China typically takes longer than an acquisition, and gaining a license approval can take more than a year. The next step is for the CSRC to accept Citadel’s application before the regulator can review it.
Citadel has been participating in China’s so-called A-share market from Hong Kong, where it trades cash equities, futures, options and exchange-traded funds. It has an office in Shanghai with a small team supporting the firm’s offshore China business.
