Royal Bank of Scotland (RBS.LSE) has signed a memorandum of understanding with a local partner to establish a Chinese securities firm, allowing the UK’s biggest state-owned bank to manage domestic equity sales in China, Bloomberg reported. RBS and its partner – whose identity was not disclosed – applied to the China Securities Regulatory Commission for approval of the venture. Edinburgh-based RBS would hold a 33% stake. A venture in China, the world’s biggest market for initial public offerings in 2009, would help RBS boost its securities underwriting revenue. The bank is looking to increase profit to repay UK taxpayers for a government-funded bailout in 2008 and 2009. A tie-up with a local partner is a prerequisite for arranging equity offerings in China.