CITIC Group
Chinese state-owned investment company From Wikipedia, the free encyclopedia
CITIC Group Corporation Ltd., formerly the China International Trust Investment Corporation (CITIC), is a state-owned investment company of the People's Republic of China, established by Rong Yiren in 1979 with the approval of Deng Xiaoping.[3] Its headquarters are in Chaoyang District, Beijing.[4] As of 2019,[update] it is China's biggest state-run conglomerate[5] with one of the largest pools of foreign assets in the world.[6] In 2023, the company was ranked 71st in the Forbes Global 2000.[7]
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Native name | 中国中信集团有限公司 | ||||||
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Company type | State-owned enterprise | ||||||
Industry | Conglomerate | ||||||
Founded | July 1, 1979 | ||||||
Founder | Rong Yiren | ||||||
Headquarters | , China | ||||||
Key people |
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Products | Metals Oil & gas Construction Food | ||||||
Services | Financial services Investments | ||||||
Revenue | US$ 131.2 billion (2023)[1] | ||||||
US$ 4.124 billion (2023)[1] | |||||||
Total assets | US$ 1,617.6 billion (2023)[1] | ||||||
Number of employees | 213,290 (2023)[1] | ||||||
Parent | Ministry of Finance | ||||||
Subsidiaries | CITIC Limited | ||||||
Chinese name | |||||||
Simplified Chinese | 中国中信集团有限公司 | ||||||
Traditional Chinese | 中國中信集團有限公司 | ||||||
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CITIC Group | |||||||
Simplified Chinese | 中信集团 | ||||||
Traditional Chinese | 中信集團 | ||||||
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Website | www | ||||||
Footnotes / references in a consolidated basis; equity and profit excluded minority interests; in Chinese Accounting Standards[2] |
Businesses
Its initial aim was to "attract and utilize foreign capital, introduce advanced technologies, and adopt advanced and scientific international practice in operation and management."[8] It now owns 44 subsidiaries including China CITIC Bank, CITIC Limited, CITIC Trust and CITIC Merchant (mainly banks) in mainland China, Hong Kong, the United States, Canada, Australia and New Zealand.[citation needed]
History
Summarize
Perspective

CITIC Group was founded as the China International Trust Investment Corporation (Chinese: 中国国际信托投资公司; abb. CITIC), a Chinese state-owned enterprise in 1979. In the 1980s, Chinese government founded many for profit corporations, which CITIC was under the leadership of Rong Yiren, a former businessman and politician at that time, who chose to stay in the mainland China in the 1950s after his family business was nationalized.[9] His son, Larry Yung,[nb 1] was the former chairman of CITIC Group's listed subsidiary CITIC Pacific. Larry also led the Hong Kong office and parent company of CITIC Pacific since 1986; Larry became a Hong Kong–based businessman since 1978.[9] Throughout the 1980s, Xiong Xianghui served as CITIC vice chair and significant CITIC leadership was drawn from the Intelligence Bureau of the Joint Staff Department.[10]
CITIC Group headquarters was based in Beijing; Hong Kong office was formally opened in 1985.[9] The mainland-based CITIC Bank was founded by the group in 1984.[9] The group also acquired 12.5% stake of the Hong Kong flag carrier Cathay Pacific in 1987,[9] and became a member of a shareholders' agreement in 2006;[11] the stake was sold to fellow state-owned company Air China in 2009.[12] The group also acquired Hong Kong–based Ka Wah Bank in 1986.[9] In 1990, the group also absorbed some of the subsidiaries of another state-owned company, 中国康华发展总公司.[13] Other notable acquisitions included 38.3% stake of another airline Dragonair, 20% stake of Hong Kong Telecom, etc.[9]
CITIC also acquired a Hong Kong listed company and renamed to CITIC Pacific in the 1990s.[citation needed]
2000s
Beginning in 2008, CITIC Group had the lead role in developing Quilamba in Angola as part of an exchange of Chinese construction materials and expertise for Angolan natural resources.[14]: 125
Its subsidiary, CITIC Pacific (Chinese: 中信泰富, now known as CITIC Limited), made unauthorized bets on the foreign currency market in October 2008 and lost HK$14.7 billion (US$1.9 billion, when accounted for in mark-to-market terms). Senior executives such as Financial Controller Chau Chi-Yin and Group Finance Director Leslie Chang resigned.[15][16][17] Its stock price plunged 55.1 percent upon the resumption of trade.[18]
In 2015, CITIC Group sold 10% stake of CITIC Limited to a joint-venture of Itochu and Charoen Pokphand for HK$34.4 billion (US$4.54 billion); the joint venture also subscribed new convertible preferred shares for HK$45.9 billion (or US$5.9 billion).[19] It was reported it was the largest investment ever made by a Japanese general trading company.[20] The transaction is also the largest acquisition in China by a Japanese company, and the largest investment by foreigners in a Chinese state-owned enterprise.[21]
In 2023, China Huarong Asset Management, the company that manages the troubled assets, contracted to buy 5.01 percent of Citic Limited for HK$13.6 billion (US$1.7 billion). Huarong will acquire a stake from CITIC Group’s subsidiary, Citic Polaris. In addition, Huarong plans to change the name to China Citic Financial Asset Management. The deal is a return on the investment that CITIC invested in 2021, leading the rescue of Huarong.[22][23]
CITIC CEFC bond default
In November 2016, CITIC CLSA acted as the sole bookrunner for CEFC Shanghai's US$250 bond issuance. CITIC CLSA hid from the market that the bond deal was only 60% subscribed at pricing. It manipulated the bond price in the secondary market in an effort to offload the 100mm USD bond CITIC CLSA held on its balance sheet.[24]
In May 2018, CITIC Group announced they would repay ca 450 million euros owed by CEFC Europe to finance and banking group J&T within days but since the debt was not paid a week later, J&T announced it had taken over shareholder rights and installed crisis management at CEFC Europe.[25][26] Several days later, CEFC Shanghai defaulted on $327 million in bond payments, and offered to make the payments six months after the maturity date.[27]
In October 2020, some retail CEFC bondholders in Hong Kong filed a complaint to the Securities and Futures Commission in Hong Kong against the bond's sole underwriter CITIC CLSA.[24]
Group companies
- CITIC Limited, a subsidiary of CITIC group in Hong Kong
- CITIC Resources
- CITIC Construction
- CITIC Newedge
- CITIC Real Estate
- CITIC Capital
- CITIC Metal Group
- CITIC Press Group
Equity investments
- CITIC Guoan Group (20.95%)
- CITIC Securities
See also
- CITIC Plaza, a skyscraper in Guangzhou
- CITIC Tower, a skyscraper in Hong Kong
- CITIC Securities
Footnotes
- Yung was another transliteration of the same surname: simplified Chinese: 荣; traditional Chinese: 榮; pinyin: Róng.
References
External links
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