Australian investment bank Macquarie Group plans to set up a securities joint venture with China’s Hengtai Securities, Bloomberg reported. According to people familiar with the situation, the two parties signed a memorandum of understanding last week. Macquarie would hold a 33% stake in the venture. Final terms are to be negotiated over the next few months before a proposal is submitted to the securities regulator for approval. The venture will seek permission to underwrite stock and bond sales and also provide advisory services. Goldman Sachs, UBS, Credit Suisse and CLSA have already won approval to trade in and underwrite sales of A-shares. Morgan Stanley is a passive stakeholder in local investment bank China International Capital Corp, but is reportedly looking to set up a new joint venture. Last month Macquarie got the go-ahead to buy a 20% stake in Kunming International Trust.
For more on foreign investment in Chinese brokerages, please read this article from the August issue of CER.
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