HSBC and Citigroup allowed to distribute mutual funds in China

Written by Reuters | Shanghai | Updated: Jun 27 2013, 06:11am hrs
China's securities regulator has granted licences to HSBC Holdings and Citigroup allowing the two banks to distribute mutual funds and expand their services in the world's second-biggest economy, the two banks said on Wednesday. China revised rules in 2011 to allow foreign banks to distribute mutual funds, allowing them to compete with local banks in this area. This product offering not only supplements the existing range of wealth management products offered by foreign banks, but also broadens distribution channels for local funds, Helen Wong, CEO of HSBC China, said in an emailed statement. China's fund distribution market is currently dominated by state lenders including Industrial and Commercial Bank of China , Bank of China and China Construction Bank.