Citigroup Global Markets Asia and Orient Securities Company Ltd today jointly announced the official opening of their securities joint venture in China. Known as Citi Orient Securities Company Ltd (东方花旗证券有限公司), the joint venture is registered and principally located in Shanghai. It has a registered capital of RMB800 million.
The joint-venture will engage in investment banking business in the Chinese domestic market, including equity and debt securities underwriting. Orient Securities will have a 66.7 percent stake in the new entity, with the remaining 33.3 percent owned by Citigroup Global Markets Asia.
Citi Orient Securities also announced the appointment of its Board of Directors. The joint venture will comprise six Board members including Mr. Pan Xinjun, Chairman of Orient Securities appointed as Chairman of Citi Orient Securities Company Ltd. Mr. Ma Ji is appointed as the Chief Executive Officer of Citi Orient Securities. Citi will be represented by Mr. Shengman Zhang, co-Chairman of Asia Pacific and Mr. Farhan Faruqui, Asia Pacific Head of Corporate and Investment Banking.
Mr. Pan, Chairman of Citi Orient Securities said at the opening ceremony, “China’s capital market is now experiencing a new development phase of reform and innovation, the launch of our securities joint venture is timely. The partnership with Citi, one of the leading global financial institutions, is a strategic move for the company to accelerate the process of creating a first-class securities firm and to further enhance its investment banking expertise and provide better services to its customers.”
Mr. Stephen Bird, CEO of Citi Asia Pacific said the joint-venture will be the leading domestic investment bank in China offering clients the benefits of Orient Securities’ deep local network and strong domestic track record and Citi’s global network and client base.
“Today marks the opening of one of our most important investments in China since we first opened in Shanghai in 1902. Our partnership with Orient Securities will compliment the work we already do globally for our Chinese clients. It underlines our commitment to offer clients local capital market solutions and we are honoured to be partnering with one of China’s leading local securities companies,” said Mr. Bird.
Citi Orient Securities will be supported with about 200 employees. The new joint-venture securities firm also has a presence in Beijing, Shenzhen and Xinjiang.