Money

Citi to form China securities venture

(Agencies)
Updated: 2011-06-01 15:01

Citigroup Inc is expected to sign an agreement this month with China's Oriental Securities Co to set up an investment banking venture, the Securities Times reported on Wednesday, citing unidentified sources.

Citigroup had intended to partner with Central China Securities, but the talks fell apart, the newspaper said.

Local media reported in February that Citigroup and Oriental Securities had been in talks over the past six months and had agreed on an initial plan for the venture.

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Citigroup could not be reached immediately for comment. Its China spokesman declined to comment on venture speculation on Monday.

Foreign banks are stepping up efforts to set up investment banking ventures in China to participate in the country's booming capital markets.

Earlier this week, the Royal Bank of Scotland Group Plc launched its Chinese securities venture, while JP Morgan Chase & Co and Morgan Stanley received regulatory approval in January for their investment banking ventures in China.

A total of seven foreign banks including UBS, Goldman Sachs and Deutsch Bank have already established Chinese securities ventures.

China is the world's top IPO market last year after companies raised a record $70 billion in proceeds, and the country plans to launch an international board as soon as this year allowing foreign companies such as HSBC Holdings Plc to float in its domestic market for the first time.