Citi Orient Securities Received CSRC Approval
Citigroup Global Markets Asia and Orient Securities Company Ltd jointly announced January 11 that Orient Securities has received preliminary regulatory approval from China Securities Regulatory Commission (CSRC) to set up a joint-venture securities firm in China. The entity, to be named Citi Orient Securities Co Ltd (东方花旗证券有限公司), will be based in Shanghai.
The joint-venture will engage in investment banking business in the Chinese domestic market, including securities underwriting and sponsoring and any other business as approved by CSRC.
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, which is the maximum permitted shareholding for a foreign entity for the moment.
“China is a priority market for Citi and we are focused on investing for the long term growth of this market. By partnering with Orient Securities, the new entity will create a market leading securities firm with the ability to service Chinese and international companies and help them raise capital from the local equity and debt markets” said Mr. Stephen Bird, CEO of Citi in Asia Pacific.
Chairman of Orient Securities, Mr. Pan Xinjun noted that investment banking business of Orient Securities has witnessed rapid growth especially in the past three years. 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.
The CSRC’s approval follows the agreement signed between all parties in June 2011. The joint venture is expected to be fully operational around the middle of 2012.