RBS identifies partner for China securities JV -source

HONG KONG, March 9 (Reuters) - British lender Royal Bank of Scotland Plc (RBS.L) has identified a partner for its planned Chinese securities joint venture, a source with knowledge of the matter said on Tuesday.

RBS's long-awaited entry into the Chinese securities market will enable the lender to underwrite stock and bond offerings in China, which is seen as a source of strong growth by many global investment banks.

The source declined to elaborate on the identity of the the partner.

"We are exploring a securities JV that would further enhance our existing platform in China, where, in addition to our locally incorporated bank, we also have a leasing company and stakes in both a futures and trust company," Asia-Pacific Chief Executive John McCormick said in a statement. "China is a core market for our wholesale and investment banking business."

RBS declined to comment further and gave no timeframe for the formation of the venture.

RBS, which was bailed out by the British government at the height of the financial crisis, owns a 19.9 percent stake in Suzhou Trust and has a fully owned leasing business, ABN AMRO Leasing (China) Co Ltd. It also has a 16.7 percent stake in futures trading company Galaxy Futures.

Last year, RBS sold its 4.3 percent stake in Bank of China (3988.HK)(601988.SS) for $2.3 billion, a decision McCormick said he regretted.

Many major international banks are focusing on China's securities market for growth as the economic slowdown in Europe and the United States shrinks banking revenues.

UBS UBS.VX, Credit Suisse (CSGN.VX), Goldman Sachs (GS.N), Morgan Stanley (MS.N), Deutsche Bank (DBKGn.DE) are among global banks with securities joint ventures in China. Citigroup (C.N) has an interbank government bond joint venture, but not a JV which allows it to underwrite equity.