Citigroup plans to expand its Asia-Pacific prime brokerage team by approximately 10% this year, as part of its broader strategy to capture more hedge fund business in the region. Sue Lee, Head of Markets for Asia Pacific South at Citi, stated that the expansion will focus on Singapore and India, with the bank hiring for front-office and technology roles to strengthen its global services platform.
This regional growth aligns with Citi's global ambitions: the group aims to increase its prime brokerage assets to over $700 billion by 2028, a significant jump from the $450 billion target for 2025. While Citi has long held a strong position in rates and fixed income, its equities business has lagged behind Wall Street peers, and the bank is now working to close this gap. Citi's prime brokerage provides financing and securities lending services to hedge funds to support their trading activities.
To bolster its leadership team, Citi has been recruiting senior talent from competitors. Last year, the bank appointed Jignesh Patel, formerly of Goldman Sachs and Millennium Management, as Head of Prime Financing for Asia Pacific. It also hired Laiman Wong from UBS to lead senior client coverage for the region from Hong Kong.
With key leadership in place, Citi has now entered a second phase of large-scale hiring. Paul Smith, Head of Markets for Japan, North Asia, and Australia at Citi, noted that after filling core front-office roles across Asia Pacific last year, the current focus is on addressing talent gaps across various business functions.
In the first quarter, trading revenues were broadly strong for major U.S. banks. Peer JPMorgan Chase saw its prime brokerage assets reach a record high, benefiting from increased client trading activity amid market volatility. Smith revealed that Citi's global prime brokerage assets surged by over 50% in Q1, setting a historical record, with the Asia-Pacific region being a key growth driver. This regional growth came from both deepening relationships with existing clients and onboarding new ones.
Smith highlighted an industry trend where clients increasingly work with multiple prime brokers, and hedge funds prefer a diversified set of partnerships. Citi continues to invest in client coverage, balance sheet allocation, and platform capabilities to meet these diverse client needs.
He also pointed out that in Q1, Citi saw record client equity inflows in Mainland China, Hong Kong, South Korea, and Taiwan, with significant focus on artificial intelligence and technology-themed investments. Demand from quantitative hedge funds and multi-strategy funds for exposure to Chinese equities remains robust.
Regarding equity trading hubs, Singapore has long trailed Hong Kong. Singaporean regulators are now actively working to develop the local stock market and improve trading liquidity. The Singapore Exchange has partnered with Nasdaq to establish a new dual-listing platform for companies. The exchange plans to launch a new global listing segment, allowing companies with a market capitalization of at least S$2 billion (approximately $1.5 billion) to raise capital simultaneously in the U.S. and Singapore. This segment is expected to go live by mid-year.
Lee added that several Southeast Asian technology companies have expressed interest in this new listing segment, and global asset managers plan to tap into the related market opportunities. Citi is assisting clients in preparing in advance to seize this new capital market opportunity.
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