Citi (C), Orient Securities JV Inches Closer to Approval in Shanghai

Citigroup (NYSE: C) is one step closer to gaining a broader footprint in Shanghai.

According to reports Wednesday, Citigroup received preliminary approval to setup a joint venture with Shanghai-based Orient Securities Co. Preliminary approval was granted by the China Securities Regulatory Commission.

The JV aims to focus mainly on investment banking, including underwriting securities and sponsoring. Citi and Orient expect the JV to be fully operational by the middle of 2012, according to statements.

Reuters noted Citi and Orient initially signed an agreement to setup a joint venture last June. Citi will have a minority stake in the effort, at just 33.3 percent.

Shares of Citi are indicated about 0.8 percent lower Wednesday morning.

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