Lehman eyes brokerage JV as part of China push

By Jason Subler

BOAO, China (Reuters) - U.S. investment bank Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) is looking to team up with a local partner to establish a joint venture brokerage in China, as part of a drive to significantly expand its presence there, an executive said.

Lehman joins a growing list of Western financial firms that are planning to set up brokerage JVs after the government lifted a two-year moratorium on new approvals late last year. Rules require them to work with local partners.

Zhizhong Yang, chairman of Lehman Brothers China, told Reuters that the firm had been in "active discussions" with prospective partners for the venture.

"We are talking to a number of potential partners; this is definitely something that we want to do. The firm's management is very focused on building a platform in China," Yang said in an interview over the weekend.

"Our vision for the China business is to offer our clients the full range of the firm's products and services," he said, speaking on the sidelines of the Boao Forum for Asia on the southern Chinese island of Hainan.

Yang declined to name the securities firms Lehman was in talks with or to estimate when it might be able to launch a JV.

"I hope it won't be too long. The government has lifted the moratorium, so we want to take the opportunity," he said.

"Once we have the domestic platform ... then we would have to grow our headcount in accordance with the opportunities."