CITIC Capital and CITIC Securities Join Forces to Create an Integrated, Cross-Border Equities Business
Hong Kong, January 16, 2006: CITIC Capital Holdings Ltd. (“CITIC Capital”) and CITIC Securities Co., Ltd. (“CITIC Securities”) today jointly announced that they have signed a Memorandum of Understanding (the “MOU”) and agreed to join forces in developing an integrated, cross-border, Greater China focused equities business platform.
Under the MOU, CITIC Securities (HK) Limited (“CITIC Securities HK”), in which CITIC Securities will own a majority stake with CITIC Capital as the minority shareholder, will be the engine for integrating the domestic and overseas equities businesses of CITIC Group. CITIC Capital’s equities business (the “ECM Businesses”), including origination, equity capital markets, institutional and retail sales, part of equity research, and related back office and support functions, will be transferred to CITIC Securities HK. Mr. Ted Tokuchi, Head of Investment Banking at CITIC Securities, will become the Chairman of CITIC Securities HK and Mr. Dominic Li, currently the Chief Operating Officer of CITIC Capital, will become the Chief Executive Officer of CITIC Securities HK.
Mr. Wang Jun, Chairman of CITIC Group, said, “CITIC Capital and CITIC Securities have been separately built and successfully grown under separate regulatory regimes. With the recent reforms in regulatory environment and the growing business need to develop cross- border capabilities, we believe it is time to integrate the resources in order to capitalize on the cross-border capital markets opportunities and maintain CITIC’s leadership in China focused investment banking business.”
Mr. Wang Dongming, Chairman of CITIC Securities, commented, “The strategic integration of the equities businesses of CITIC Capital and CITIC Securities will immediately create a unique, full-fledged cross-border platform which would enable us to take advantage of the opportunities domestically and overseas and better serve our clients and investors.”
Mr. Zhang Yichen, Chief Executive Officer of CITIC Capital, said, “Since CITIC Capital’s inception in 2002, our equities business has rapidly established its presence in the Hong Kong market. Our proven expertise and track record in international equities will bring enormous advantages to the integrated platform and enable CITIC Securities to accelerate its international expansion, as well as provide tremendous opportunities for our employees and enhance our shareholders’ return.”
“After the completion of the injection of our ECM Businesses into CITIC Securities HK, CITIC Capital will focus on developing our principal businesses of asset management and investments in private equity, real estate and marketable alternative investment products and on corporate advisory, structured products and
mezzanine financing. This focused business model will be further augmented by our contemplated investment in CITIC Trust & Investment Co., Ltd. which is expected to serve as an important part of our cross-border asset management and corporate advisory platform, and allow us to better capitalize on the increasing cross-border capital and investment flows.” Mr. Zhang added.
The proposed transaction is subject to regulatory approvals in Hong Kong and the Mainland.
Editors’ Notes
About CITIC Capital Holdings Ltd. CITIC Capital Holdings Limited was formed on 4 February 2002 and has served as the international investment banking arm of CITIC Group providing a full range of financial services to both private and institutional clients. CITIC Pacific Limited and CITIC International Financial Holdings Limited each holds a 50% stake in the company. Leveraging on the in-depth knowledge of China and the resources of CITIC Group, and the expertise of its financial professionals, the Company provides comprehensive and professional financial services in investment banking, asset management and securities brokerage. For more information, please visit www.citiccapital.com.
About CITIC Securities Co., Ltd. CITIC Securities Co., Ltd. was formed on 25 October 1995 and its shares are listed on the Shanghai Stock Exchange. It is one of the largest securities houses in Mainland China in terms of net assets and provides comprehensive and full-range of financial services to domestic customers. For more information, please visit, www.ecitic.com.