SHANGHAI--Citigroup Inc. (C) has finally gained access to China's fast-growing capital market with the launch Monday of an investment banking joint venture in the country. The joint venture with Shanghai-based Orient Securities Co. will allow the U.S. bank to engage in equity and debt securities underwriting in mainland China, Citigroup said in a statement. Citi Orient Securities Co. has a registered capital of 800 million yuan (US$126 million), with Citigroup holding a 33.3% share in the venture, the regulatory ceiling for a foreign firm's stake in investment banking business in China. Stephen Bird, chief executive of Citi Asia Pacific, said the joint venture aims to be a leading investment bank in China, capitalizing on Orient Securities' deep local network as well as Citi's global network and client base. "Our partnership with Orient Securities will complement the work we already do globally for our Chinese clients. It underlines our commitment to offer clients local capital market solutions," the statement quoted Mr. Bird as saying. The move is a major step forward for Citigroup in China, one of the most important markets for the U.S. bank as it aims to keep pace with global rivals such as UBS AG, Goldman Sachs Group Inc. and Morgan Stanley, which have set up similar investment banking ventures in China in the past few years. Orient Securities, established in 1998, operates about 60 securities branches and is indirectly owned by the Shanghai government. Its businesses include securities underwriting, brokerage services, securities trading, asset management and commodities futures in China. Data from Securities Association of China show that Orient Securities ranks 12th in China's securities industry in terms of assets. Write to Rose Yu at rose.yu@dowjones.com and Li Yue at yue.li@dowjones.com
