Citigroup to announce joint venture effort in China

by Richard Kilner

Story link: Citigroup to announce joint venture effort in China

It is speculated that Chinese regulators will soon receive an application from Citigroup Inc and Central China Securities to launch a joint venture investment bank.

Should the deal go through it would be the first investment banking operation that Citigroup would have in China.

At present Citigroup assists Chinese companies list in Hong Kong, and the prospect of an investment bank in China itself would be an important step forward for the firm.

The expansion would also signal Citigroup’s continuing intent to growth, despite its substantial subprime-related losses.

Recently the bank stated it intended to shed 4,200 jobs after posting a massive quarterly loss.

An announcement regarding the deal is expected within the next 7 days.