Citi said the joint venture will engage in investment-banking business in the Chinese domestic market, including equity and debt underwriting and advisory services. The partners will also cooperate on research and training.
In this joint venture, Orient Securities will hold 67% stake, while remaining 33% will be owned by Citigroup, consistent with existing Chinese regulations.
Citi Asia Pacific CEO Stephen Bird said 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.
Orient Securities, headquartered in Shanghai, covers securities underwriting, brokerage, securities trading, asset management, commodities futures and financial futures in the domestic market, with 57 securities branches.
Orient Securities has more than 2200 employees and is jointly owned by a number of Shanghai’s State Owned Companies.
