China’s largest brokerage, Galaxy Securities, has signed a pact with Citibank to cooperate on banking, securities services and other operations. The firm said that initially Citibank would share its expertise with Galaxy and that the two would explore deeper co-operation when laws permitted. Citibank would help Galaxy to expand into international markets and to prepare for foreign competition following China’s accession to the World Trade Organisation.
Foreign institutions are eager to forge links with Chinese firms in order to enter the domestic market. HSBC has said that it is talking to various brokerages with a view to taking a stake in them and setting up a domestic venture. Last year, it signed a pact similar to Citibank’s with China Southern Fund Management.
Earlier this year, BNP Paribas of France signed a framework agreement with Changjiang Securities, under which the two companies pledged to create a joint venture securities brokerage once China had finalised the relevant regulations.