Citigroup is expanding its Asia rates and prime brokerage teams by up to 10% over the next year, as booming activity from hedge fund clients fuels growth across the region, according a report by Bloomberg citing to Paul Smith, the bank’s Head of Markets for Japan, North Asia, and Australia.
Speaking with Bloomberg, Smith highlighted a doubling of Citi’s hedge fund prime clients in Asia over the past two years, driven by a resurgence in Hong Kong and China IPO flows and increasing demand from quant funds targeting less-liquid Chinese A-shares.
A key area of focus has been servicing quant hedge funds looking to access A-shares beyond the most liquid top 100 names.
Hedge fund flows into Hong Kong and China markets rose 30% in H1 2025, prompting Citi to increase investor engagement—including visits to China’s second- and third-tier cities. The Hong Kong markets division, home to several hundred staff (with 75% in equities), has also seen key leadership moves, including the return of Asia Pacific Head of Equity Trading Robert Stewart from Singapore.
Citi’s momentum has translated into strong earnings, with traders delivering their best Q2 performance in five years: fixed income revenue jumped 20% to $4.3bn, and equities trading brought in $1.6bn.
