Citi is set to grow its Japan and China investment banking teams, hiring new senior bankers while aiming to boost its cross-border merger and acquisition (M&A) deals, Reuters reported Monday, citing the bank’s Asia investment banking head.

Kaustubh Kulkarni, head of regional investment banking, told the outlet that Asia M&A deal activity has remained resilient, driven by sector fundamentals and strategic corporate agendas, despite conflict in Iran disrupting the global economy

He added that this is particularly true in highly developed markets including Korea, Japan and Taiwan, which are less energy-sensitive than developing economies such as Indonesia and the Philippines.

Citi will focus on hiring in Japan to plug gaps in sectors such as technology, media and telecommunications, as according to Kulkarni: "Japanese companies are becoming a lot more creative and open for strategic conversations."

The bank also intends to improve coordination between local and international teams to win more cross-border M&A and sponsor work, Kulkarni told Reuters.

In China, the bank is awaiting a green light from local authorities that will allow it to operate a securities unit in the country. Once opened, this will house Citi’s onshore investment team.
The bank is already in hiring mode in the country, Kulkarni said, looking to bring in investment bankers who can cover “new-age” and “high-growth companies”.

Citi is also considering a third senior hire in Australia alongside its two previously-hired senior bankers covering healthcare and natural resources, Kulkarni added.

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