Citigroup Inc signed a cooperative agreement with Central China Securities Co following in the footsteps of Morgan Stanley, Credit Suisse and Bear Stearns, according to news reports.
Caijing Magazine and Reuters reported yesterday that Citigroup plans to set up an investment banking joint venture with Henan-based Central China Securities Co, citing anonymous sources.
A provincial website, www.pds.org.cn, has photos of Citigroup and Central China Securities officials hugging after signing the deal last Thursday.
The deal is awaiting regulatory approval. Citigroup may hold a maximum 33.3-percent stake in the joint venture under China's securities rules.
Both Citigroup and the brokerage declined to comment despite the photos appearing on the Website.
Earlier this month, Credit Suisse Group and Founder Securities Co Ltd formed a joint venture.
Morgan Stanley signed a venture deal in December with China Fortune Securities Co.
(Shanghai Daily January 29, 2008)