Citi and Orient Securities Sign China Securities JV Agreement
Citigroup and Orient Securities Company Ltd signed definitive agreements June 2, subject to regulatory approval, establishing a securities joint venture to operate in the Chinese domestic market. The new JV will be called 东方花旗证券有限公司 in Chinese and “Citi Orient Securities Co. Ltd” in English.
The joint venture will engage in investment banking business in the Chinese domestic market, including equity and debt underwriting and advisory services. Orient Securities Company Ltd will have a 67 per cent stake in the new entity with the remaining 33 per cent owned by Citigroup, consistent with existing Chinese regulations.
In addition to the investment banking JV, Orient Securities and Citi will also explore further cooperation in other areas such as research and training.
“The pairing of Citi’s global capabilities and Orient’s local strengths will create a market leading securities company with the ability to serve Chinese and international companies to help them raise capital from local equity and debt markets. This new partnership underscores our strategic commitment to China’s capital markets and complements our well-established banking franchise in China,” said Stephen Bird, CEO for Citi in Asia Pacific.
“We are delighted to be forming this important partnership with Orient Securities, a strong, highly reputable local firm which shares Citi’s management philosophy on building for success.
This announcement underlines our continued investment in China to support our clients,” said Andrew Au, CEO for Citi China.