Citigroup Inc. plans to set up a majority-owned securities joint venture in China after exiting its joint venture with Orient Securities Co. Ltd., Reuters reported Jan. 8, citing people familiar with the matter.
Citigroup told Reuters that it wants to own a domestic joint venture to widen its scope of business in China. It is now looking for a new partner for its securities unit, and could finalize the search before the end of 2019, the source said.
In December 2018, the bank agreed to sell its 33.33% equity interest in Citi Orient Securities Co. Ltd. to Orient Securities. The move follows reports that talks to acquire a majority ownership in the securities company have not progressed.
The board of Orient Securities approved the proposed acquisition, subject to regulatory approval, according to a Jan. 8 release.