* RBS confirms JV deal with China's Guolian Securities
* JV has six months to start from date of approval
* Reiterates no new capital needed because of Basel III (Adds details, background)
By Kelvin Soh
HONG KONG, Nov 9 (Reuters) - The Royal Bank of Scotland Group Plc on Tuesday said it has received approval to set up a Chinese securities joint venture, moving a step closer to the coveted ability to underwrite stocks and bonds in China's fast-growing financial market.
Lawrence Lam, head of Greater China for RBS, spoke at a company media event here on Tuesday, saying the bank's agreement with Wuxi-based Guolian Securities would have six months to set up the venture, as required by Beijing.
RBS Chairman Philip Hampton, also present at the event, added that RBS did not require fresh capital as a result of Basel III rules, a position the company outlined in its quarterly report last week.
RBS is 83 percent owned by the British government.
While RBS's purchase of Dutch bank ABN-AMRO led to its financial troubles and ultimate bail-out, the deal did give the bank a footprint in Asia.
RBS has sold most of its commercial banking units in Asia but still has its investment bank presence in the region.
Getting a securities partner and license in China is not easy, but the payout is potentially lucrative. Tapping China's economic growth and having the ability to underwrite securities is something to which Western banks have long sought access.
Morgan Stanley, Goldman Sachs Group Inc, UBS AG and Credit Suisse are among banks with joint venture partners in China. Beijing restricts the amount a foreign bank can acquire of a domestic bank to about 33 percent.
RBS also said at the Hong Kong event that all non-core assets would leave its balance sheet within the next 2-3 years. (Editing by Chris Lewis)