HONG KONG, April 27 (Reuters) - Citigroup ( C ) will further

bolster its Japan and China investment banking teams by adding

selective senior bankers while aiming to win more cross-border

merger and acquisition deals, the bank's Asia investment banking

head told Reuters on Monday.

Despite the Iran conflict, the firm is moving forward with

efforts to grow its in-market presence in the region, after

completing its years-long global restructuring.

Asia deal activity remains resilient - driven by sector

fundamentals and strategic corporate agendas, according to

Kaustubh Kulkarni, who became the sole head of regional

investment banking after former co-head Jan Metzger left to join

Standard Chartered in March.

Some smaller emerging markets such as Indonesia and Malaysia

that are sensitive to energy shocks have seen slower IPO and

capital-market activity, but the forces driving deals in Japan,

Korea and Taiwan are less energy-sensitive, he added.

The Wall Street bank plans to add selective senior hires in

Japan to close coverage gaps, such as in the technology, media,

and telecommunications sector, and provide the seniority

Japanese clients value, according to Kulkarni.

"Japanese companies are becoming a lot more creative and open

for strategic conversations," Kulkarni said, adding governance-

driven corporate structure changes and activism are behind the

increased client interest.

The bank aims to improve coordination between local and

international teams to win cross-border M&A and sponsor work,

according to Kulkarni.

Citi's global investment banking fees grew 12% year on year

in the first quarter.

In China, Citi is awaiting a final green light from the

authorities to allow it to operate its own securities unit which

will house its onshore investment banking team.

Kulkarni said the operation is already in the hiring mode

for China, with a focus on bringing in investment bankers who

can cover "new-age" and "high-growth companies", without

disclosing the details.

The Chinese offshore market of Hong Kong has seen its equity

capital markets mark the strongest start to a year since 2021

with over HK$140 billion raised in IPOs by late April,

representing a more than 400% increase compared to a year ago.

Citi is also mulling a third senior hire in Australia to

complete a planned build-out, according to Kulkarni, after

bringing in two senior bankers in healthcare and natural

resources to fill sector leadership gaps.