Citi gets approval as China bond market maker

August 12, 2009

CITIGROUP/    SHANGHAI, Aug 12 (Reuters) – Citigroup Inc’s <C.N> China banking unit said on Wednesday it has received regulatory approval to act as a market maker in China’s interbank bond market, the second foreign lender to get the go-ahead in a liberalisation drive.
   JPMorgan Chase <JPM.N> and 19 Chinese banks are currently interbank bond market makers, which continuously quote buying and selling prices with the aim of profiting on the spread.
   China is licensing foreign market makers to boost liquidity and further deregulate the domestic bond market.
   The new role will enable Citi to broaden its access to a variety of yuan-denominated fixed-income products, the U.S. lender said in an e-mailed statement.
  “China’s interbank bond market is an important arena for financial institutions to engage in funding and capital market activities for themselves and their clients,” Citi China Chief Executive Officer Andrew Au said in the statement.
   Citi has been an active player in China’s yuan interbank bond market and Interbank Foreign Exchange Market, the statement said. (US$1=6.832 Yuan) (Reporting by Samuel Shen and Edmund Klamann) ((; +86 21 6104 1789; Reuters Messaging: ((If you have a query or comment on this story, send an email to Keywords: CITIGROUP/CHINA BONDS
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 Wednesday, 12 August 2009 11:12:31RTRS [nSHA63922] {EN}ENDS

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