Citigroup eyes venture with China
Citigroup is gearing up for a joint venture with Central China Securities Holdings Co., to earn fees from underwriting Yuan-denominated sales of shares.
Citigroup is gearing up for a joint venture with Central China Securities Holdings Co., allowing the company to earn fees from underwriting Yuan-denominated sales of shares, according to published reports.
The New York-based Citigroup will soon apply to the Chinese government for approval of its new joint venture, joining fellow financial firms Goldman Sachs Group Inc. and UBS AG in establishing a China-based underwriting venture.
The deal represents one instance of an influx of investment groups, including Morgan Stanley and Credit Suisse Group, into China due to the recent lifting of a moratorium on joint venture companies in China.
The moratorium, passed in 2006, was set up by the Chinese government in order to protect local markets.
Central China Securities, established in 2002, is based in Zhengzhou, the capital of Henan province in China.
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