US officials raised the prospect of broader access to China for Mastercard and Citigroup during bilateral financial talks in Bangkok this week. The discussions covered payment clearing and securities licenses, with regulatory approvals still to determine whether the companies can operate more independently in the market.
The talks took place alongside meetings of G20 finance ministers and central bank governors, as well as the annual meetings of the International Monetary Fund and World Bank. A US Treasury delegation led by Deputy Secretary Francis Brook held at least two bilateral meetings with officials from the People’s Bank of China and China’s Ministry of Finance.
Bangkok talks cover Mastercard, Visa and Citi
A US Treasury official said the companies discussed included Mastercard, Visa and Citigroup. Some of the regulatory arrangements form part of an agreement reached by the two countries’ leaders during a meeting in Washington in September. The meetings on the sidelines in Bangkok continued discussions on how to implement those arrangements.
Regulators and the companies have not publicly set out a full timetable for approvals. The People’s Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the Chinese embassies in Singapore and Thailand, the US Treasury press office and Visa did not immediately respond to requests for comment. Citi and Mastercard declined to comment.
For payment networks, permission to operate independently would affect how they do business in China and the revenue they can earn there. For investors, the approval process is also a concrete measure of the pace of China’s financial-market opening and the progress of US-China financial cooperation.
Visa begins preparations for domestic clearing business
The discussions followed China’s October 13 approval for Visa to begin preparing for a wholly owned bank card clearing business in the country. The People’s Bank of China said Visa has up to one year to complete preparations before it can apply for a formal operating license.
Since 2018, China has gradually widened foreign access to its financial sector, easing ownership limits in areas including securities, futures and fund management. Cross-border capital flows remain managed, however, and domestic players retain an important position in payments, supported by their local networks and resources.
If it receives an operating license, Visa could establish a wholly owned bank card clearing business in China. Mastercard currently handles renminbi bank card payments through a local joint venture with NetsUnion Clearing Corporation. The venture began operating in 2024. Further progress on the potential approval could allow Mastercard to operate independently rather than relying entirely on the existing joint venture.
Citi seeks a wholly owned securities license
Citigroup is seeking a license to conduct securities business on a wholly owned basis. People familiar with the matter said the bank plans to offer onshore A-share brokerage, underwriting, research and proprietary trading.
Citi has hired dozens of staff for its China business, and one person familiar with the matter said the bank plans to expand its China securities team to about 100 people. Citi submitted its application at the end of 2021, and the market had expected progress on the license in the near term.
Approval would allow Citi to take part more fully in China’s domestic capital markets, spanning stock trading, corporate financing and research services. A wholly owned license for a foreign securities firm would add another type of institution to the market, but the scope of permitted business would depend on the final license terms and subsequent regulatory requirements.
Market-opening measures remain limited in scope
Dan Wang, head of China at Eurasia Group, said the developments indicate that the US-China trade environment remains relatively stable and that Beijing is moving to implement arrangements reached earlier. She described licensing for US financial firms as a limited market-access concession, while saying it also reflects China’s continued efforts to open its financial sector and could provide modest support for investor confidence in Chinese assets.
There is still no publicly announced final approval timetable for Mastercard or Citi. Visa has permission to begin preparations but has not received a formal operating license. The next milestones are whether regulators set out specific licensing arrangements and whether the companies can move from preparation to operations.