China/USA: Citigroup may buy stake in China's Huatai Securities - report

SHANGHAI (XFN-ASIA) - Citigroup has started talks to take a strategic stake in China's Huatai Securities Co Ltd, the Shanghai-based Oriental Morning Post reported, citing Zhang Tao, vice president of Huatai.

"The company is carrying out capital expansion via the issue of additional shares, and Citigroup is among a number of strategic investors in talks with us," Zhang was quoted as saying. The two parties are planning to cooperate in securities research and fund management under the Qualified Foreign亚博赞助欧冠program, the report said.

"Citibank is interested in Huatai's large network, and we are interested in Citibank's R&D capability, management experience and overseas resources," an unidentified senior Huatai official was quoted as saying.

Huatai is headquartered in Shanghai, with more than 50 brokerage branches in China, according to its website. The company has registered capital of 2.2 bln yuan after five expansions.

It acquired 48 branches from bankrupt Asia Securities Co last October, and bought United Securities for 700 mln yuan in May.

Local brokerages currently need to wait for the removal of current restictions on foreign investment in the sector.

Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC), said it may take more than one year to complete the consolidation and reorganization of the securities industry, which was the reason for restricting foreign investment.