Citigroup's China unit said on Tuesday that it had received the so-called "Type A" bond settlement agent license from China's central bank, allowing it to add to its offering of sales, trading and research in the fixed-income business.
Reuters reports that Citigroup is the first U.S.-based bank to be granted the Type A license to act as a bond settlement agent in China's interbank bond market. Other global banks with such a license include Deutsche Bank and BNP Paribas.
Type A license holders in China can trade, settle and provide custody for interbank bond market products both on a proprietary basis and on behalf of foreign investors.
The news agency also reports that JPMorgan Chase said on Monday it had received approval and license to underwrite corporate bonds in China's interbank bond market, making it the first U.S.-headquartered bank to do so.
The license enables JPMorgan to underwrite debt financing instruments issued by non-financial entities, including commercial papers, medium-term notes and other instruments approved by regulators, it said.