Citic Securities, a top state-controlled investment bank in China, is planning to invest $1 billion in Bear Stearns and form a joint venture with the firm in Asia, the companies said this morning in a statement. The deal comes amid speculation that Bear Stearns might seek a partner following the summer’s credit crunch, which took a toll on the firm’s earnings.

“This groundbreaking alliance will give Bear Stearns a unique footprint in one of the world’s fastest-growing economies,” the chief executive of Bear Stearns, James Cayne said in a statement today. “Combining our operations in Asia with Citic Securities will greatly benefit Bear Stearns’s global client base and generate substantial new revenues.”

The deal, which also calls for Bear Stearns to invest $1 billion in Citic, which is owned by an arm of the Chinese government, would pool together both firms’ businesses in Asia, with the exception of China. The venture, however, would include some collaboration in China, giving Bear Stearns access to some of Citic’s clients.

The transaction would give Bear Stearns a strong foothold in Asia, where it has been weak, and may help it catch bigger rivals like Goldman Sachs and Morgan Stanley.