Recruiting in China

Citigroup has agreed with a Chinese partner to establish a mainland investment banking joint venture with Central China Securities, a mid-sized brokerage, ahead of an expected opening of the sector to more overseas participation.

The venture is expected to apply for regulatory approval in the coming weeks, and comes as Beijing is poised to relax a two-year ban on foreign investment in the country’s booming domestic securities industry.

Citi’s move follows those of Credit Suisse and Morgan Stanley, which last month signed separate agreements with Chinese partners to establish mainland investment banking joint ventures. If approved, the JV would become the latest plank in Citi’s mainland platform, which features a stake in Shanghai Pudong Development Bank, de facto control of Guangdong Development Bank and its own retail branch network.