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)
