NEW YORK: Citigroup Inc is about to apply to set up an investment banking business in China, joining its major Wall Street rivals in a chase after billions of dollars in potential profits as the nation opens its US$54 trillion (RM224.30 trillion) financial market.

       The US bank plans to submit an application for a licence to underwrite yuan-denominated shares and conduct trading for clients on the Chinese mainland over the next couple of days, a person familiar with the plan said, who asked not to be named discussing a private matter.

       It will also apply for a futures licence in the next few weeks, the person said. A Hong Kong-based spokesman at Citigroup declined to comment.

       After spending more than a year exiting a local joint venture, Citigroup is now a late entrant in setting up its own securities operation after the country last year opened for foreign firms to take full control.

       JPMorgan Chase & Co became the first Wall Street bank to gain full ownership in August, followed by Goldman Sachs Group Inc last month.

       Global banks, which had limited success over the past decade with joint ventures, have aggressive plans to expand in China, deepening their footprint in everything from investment banking, asset management to trading operations.

       Even so, risks are rising amid increasing political tension between China and the West and a broad crackdown by Beijing on the nation’s private sector.

       Citigroup is also seeking to build out its wealth and institutional businesses in China. In June, it received approval to become the first major global custodian allowed to operate in China.

       The bank last month announced a partnership with China Guangfa Bank to offer wealth services to retail clients in the Greater Bay Area, a cross-border zone that includes Hong Kong and mainland cities such as Guangzhou and Shenzhen.

       The push for licences comes as the lender has announced plans to exit retail banking in China and other markets across Asia, Europe, Middle East and Africa.

       Foreign lenders have also been making money by serving Chinese clients outside of the country.

       Citigroup has helped arrange US$37bil (RM153.69bil) in share sales for Chinese firms this year, placing it third behind Morgan Stanley and Goldman Sachs, data compiled by Bloomberg show. — Bloomberg