So the worst kept secret in Chinese stock broking is finally out. Citic Securities, the country's largest broker by revenue and assets, has inked a landmark deal with France's Crédit Agricole.

This is one ‘memorandum of understanding' that should blossom immediately. Official confirmation of the tie-up awaited the rubber-stamp from China's State Council, effectively giving it the highest seal of approval.

Citic will collaborate with the French bank's European and US brokerage arms in global equity capital markets, derivatives and investment banking. It will also merge its offshore unit in to CLSA, Crédit Agricole's well-regarded Hong Kong-based brokerage. For CLSA, the deal has the potential to catapult its fortunes on the mainland. At a stroke, Citic will replace Fortune Securities, a small brokerage in Hunan province, as the local partner in CLSA's existing Chinese joint venture which focuses on institutional and corporate business.