The green light, confirmed by the lender and announced by China's regulator, came just weeks after Xi Jinping and Donald Trump met in Washington. The firm will have a registered capital of 1.2 billion yuan ($180 million), according to Chinese regulators.

The Wall Street firm's path to a standalone presence in the world's second-largest economy has been fraught with delays. Since applying in late 2021, the bank has had to navigate shifting Chinese data-security rules and scrutiny from US regulators.

Headquartered in Shanghai, Citigroup Securities (China) Co. will provide onshore capital market services to domestic and international clients, including underwriting, equities brokerage, investment advisory, research, and trading in listed securities, according to a statement.

Citi sees mid and large-sized private companies as the next generation of corporate champions and is betting that an early banking relationship can make it a first port of call for financing and eventually open the door to onshore capital raising as those firms expand through global supply chains, according to people familiar with the firm's strategy.

A late entrant to China's domestic securities market, Citi has to rebuild its footprint after dissolving its investment-banking joint venture with Orient Securities Co. in 2019 and, more recently, exiting consumer banking in China amid a global pullback.

Despite the wait for the securities license, Citi maintains an extensive infrastructure on the mainland, including bond clearing and settlement services, futures margin depository bank, corporate bond underwriting and domestic fund custody licenses to serve institutional investors.