Citic Securities and Credit Agricole combine forces

China's largest stockbroker Citic Securities and French firm Credit Agricole have inked a deal to combine their global brokerage and investment banking businesses.

As per the terms of the alliance, CLSA and Citic will enter a joint venture for the research, broking and equity capital markets businesses in China, putting the Hong Kong-based brokerage in a good position to become the dominant foreign player in the China brokerage business. CLSA is 65%-owned by Credit Agricole. 

Financial terms of the deal have not been disclosed and details of how the JV will be managed in China and the exact representation of Citic and CLSA on the board of the JV are still being ironed out. This suggests the alliance is not yet a done deal. However, the decision of both parties to publicise the memorandum of understanding they have signed suggests a high level of confidence that the remaining issues are close to being resolved.