Macquarie forms JV with Hengtai

Macquarie Group Ltd, Australia's biggest investment bank, is planning a joint venture with Hengtai Securities Co to gain access to China's $70 billion equity and bond underwriting market, according to sources familiar with the deal.

The Sydney-based bank last week signed a memorandum of understanding with Hengtai to form a joint venture company, the people said, asking not to be identified because no announcement has been made. Macquarie would hold a 33 percent stake in the venture, they said.

Macquarie is the third foreign investment bank to sign an agreement or win approval in the past six months for a venture in China, which has 103.6 million active securities accounts.