Citigroup's markets division is hiring more staff for its Asia rates and prime businesses, with plans to increase headcount by 5% to 10% over the next year, to meet rising demand from clients.

Its prime hedge fund clients in the region have doubled in two years, fuelled by a rebound in initial public offerings ( IPOs ), particularly in Hong Kong, the bank says.

There is growing demand from quantitative funds seeking access to less-liquid A-shares in China, resulting in Citi winning mandates from US-based quant funds.

In the first half of 2025, client flows into Hong Kong and China rose by about 30%. Citigroup traders posted their best second quarter in five years, with a record quarter for equities.

Fixed income revenues reached US$4.3 billion, up 20% from a year ago, amid robust demand across rates, currencies, spreads, and other products.

Rates and currencies revenues also rose 27% year-on-year, driven by increased client activity and monetization with both corporate and financial institution clients.

Equity markets revenues rose 6% y-o-y to US$1.6 billion, with prime balances up approximately 27%, as client activity and volumes in cash equities increased.

“The surge in client activity, particularly from hedge funds, and the booming IPO market in Hong Kong and China have created an unprecedented demand for our services,” says Paul Smith, head of markets for Japan, Asia North and Australia at Citi.

“The strategic expansion across our markets franchise and, in particular, our rates and prime businesses, will allow us to better serve our clients and capitalize on the significant growth opportunities in the region."