Citi to boost Japan, China investment banking teams, plans senior sector-focused hires

(Corrects reference in paragraph 4 to read the Philippines instead of Malaysia)

By Selena Li and Sumeet Chatterjee

HONG KONG, April 27 (Reuters) – Citigroup will further bolster its Japan and China investment banking teams by adding selective senior bankers while aiming to win more cross-border merger and acquisition deals, the bank’s Asia investment banking head told Reuters on Monday.

Despite the Iran conflict, the firm is moving forward with efforts to grow its in‑market presence in the region, after completing its years-long global restructuring.

Asia deal activity remains resilient – driven by sector fundamentals and strategic corporate agendas, according to Kaustubh Kulkarni, who became the sole head of regional investment banking after former co-head Jan Metzger left to join Standard Chartered in March.

Some emerging markets such as Indonesia and the Philippines that are sensitive to energy shocks have seen slower IPO and capital-market activity, but the forces driving deals in Japan, Korea and Taiwan are less energy-sensitive, he added.

The Wall Street bank plans to add selective senior hires in Japan to close coverage gaps, such as in the technology, media, and telecommunications sector, and provide the seniority Japanese clients value, according to Kulkarni.

“Japanese companies are becoming a lot more creative and open for strategic conversations,” Kulkarni said, adding governance- driven corporate structure changes and activism are behind the increased client interest. 

The bank aims to improve coordination between local and international teams to win cross‑border M&A and sponsor work, according to Kulkarni.

Citi’s global investment banking fees grew 12% year on year in the first quarter.

In China, Citi is awaiting a final green light from the authorities to allow it to operate its own securities unit which will house its onshore investment banking team.

Kulkarni said the operation is already in the hiring mode for China, with a focus on bringing in investment bankers who can cover “new-age” and “high-growth companies”, without disclosing the details.

The Chinese offshore market of Hong Kong has seen its equity capital markets mark the strongest start to a year since 2021 with over HK$140 billion raised in IPOs by late April, representing a more than 400% increase compared to a year ago.

Citi is also mulling a third senior hire in Australia to complete a planned build-out, according to Kulkarni, after bringing in two senior bankers in healthcare and natural resources to fill sector leadership gaps.

(Reporting by Selena Li and Sumeet ChatterjeeEdiitng by Keith Weir)