Citi’s China-US corridor thrives as mainland firms hedge risks amid trade turbulence
Escalating US-China trade friction has failed to dampen corporate activity between the two economies, with Citi reporting steady revenue growth on its North America-China corridor as Chinese companies aggressively deploy risk-hedging strategies to protect their global market share. Instead of retreating from the US market, mainland Chinese firms had leaned heavily on global institutions to…
Despite escalating US-China trade tensions, corporate activity between the two nations has remained robust, according to Citi. Chinese companies have been utilizing risk management techniques to safeguard their global market presence, rather than withdrawing from the US market. Citi's China CEO, Zhang Wenjie, reported a 44% year-on-year increase in revenue across the bank's China-US corridor during the first half of the year.
The geopolitical uncertainties have driven demand for cross-border financial services, prompting Chinese enterprises to turn to international banks for foreign exchange hedging, trade exposure management, and capital flow reconfiguration. As China enters a "Going Global 3.0" phase, the focus has shifted from low-cost manufactured exports to exporting advanced technology, localized supply chains, and high-value innovations in sectors like green energy, electric vehicles, consumer electronics, and artificial intelligence infrastructure.
Citi's Greater China executives noted that mainland Chinese parent companies are adopting a "dual-hub strategy," maintaining domestic headquarters while establishing regional treasury centers in Hong Kong to handle international capital. This shift has made the Hong Kong-mainland China corridor Citi's largest and most active international banking route, with revenue from mainland clients' cross-border operations through Hong Kong rising by 20% year-on-year.
The momentum was evident on August 23 when Alibaba Group Holding priced a HK$80 billion (US$10.2 billion) share placement to fund its AI expansion, with Citi serving as one of three co-bookrunners. Chinese corporate activity is also expanding rapidly into emerging markets such as Central Asia, Southeast Asia, the Middle East, and Latin America.
In response, Citi is increasing its network of dedicated "China desks" – staffed by senior Chinese-speaking bankers – to support this growing footprint.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
