CITIC Group

Not to be confused with CIT Group or Citigroup.
CITIC Group Corporation
中国中信集团公司
State-owned enterprise
Industry Investment company
Founded 1979
Founder Rong Yiren
Headquarters Beijing, People's Republic of China
Area served
 People's Republic of China
Key people
 Chang Zhenming (Chairman), Jiong Wang (Vice Chairman, President, Member of Executive Committee and Member of Nomination Committee), Jianzhong Dou (Executive Director and Member of Executive Committee), Wei Min Ju (Chief Financial Officer)
Products Financial Services, Banking
CNY 30 billion (2012)[1]
Total assets CNY 3.56 trillion (2012)[1]
Total equity CNY 235.5 billion (2012)[1]
Owner Central People's Government
Divisions 44 subsidiaries
Website www.citic.com

CITIC Group Corporation (Chinese: 中信集团公司; pinyin: Zhōngxìn Jítuán Gōngsī), formerly the China International Trust and Investment Corporation, 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.[1] Its headquarters are in Chaoyang District, Beijing.[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."[3] It now owns 44 subsidiaries including China CITIC Bank, CITIC Holdings, CITIC Trust Co. and CITIC Merchant Co., Ltd (mainly banks) in China, Hong Kong, the United States, Canada, Australia and New Zealand.

History

The founder of CITIC, Rong Yiren, is one of the richest businessmen in China in the 1980s. He was also one of the earliest capitalists who stayed in mainland China. .

It was reported on September 17, 2008, that CITIC was in talks to acquire Morgan Stanley. Instead Morgan sold a substantial portion of their company to Mitsubishi UFJ Financial Group in addition to applying for $10 billion from the Treasury Department as part of the $700 billion Troubled Asset Relief Program.

Its subsidiary, CITIC Pacific (Chinese: 中信泰富), 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 Chi Yin Chau and Group Finance Director Leslie Chang resigned.[4][5][6] Its stock price plunged 55.1 percent upon the resumption of trade.[7]

In 2015, the Japanese general trading company Itochu and its Thai cross-shareholding affiliate Charoen Pokphand announced an investment of over $8 billion in CITIC group companies, the largest investment ever made by a Japanese general trading company.[8] 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.[9]

In 2015, CITIC ranks the 186th among Global Fortune 500, with an annual revenue of $55325 million.

Group companies

See also

References

  1. 1 2 3 4 "CITIC Group Corporation: Brief Introduction". CITIC Group. Retrieved August 17, 2015.
  2. ↑ "Citic Group Contac".
  3. ↑ "Citic Limited".
  4. ↑ Keith Bradsher (2008-10-20). "Citic Pacific could lose $2 billion from foreign exchange trading". New York Times.
  5. ↑ Alison Leung, Ruth Wong (2008-10-20). "CITIC Pacific warns potential $2 billion forex losses". Reuters.
  6. ↑ Katherine Ng (2008-10-21). "Heads roll as $15.5b losses loom". The Standard.
  7. ↑ [Archived June 4, 2011, at the Wayback Machine. "中信泰富暴挫55.1%"] Check |url= value (help). 2008-10-21.
  8. ↑ "Itochu, CP to jointly invest 1 trillion yen in China's Citic Group". Nikkei. 20 January 2015. Retrieved 22 January 2015.
  9. ↑ Fukase, Atsuko (20 January 2015). "Thaw in Japan-China Business Ties? Itochu’s Citic Deal Towers Above Others". Wall Street Journal Japan Real Time. Retrieved 22 January 2015.

External links

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