 | |||||||
 Headquarters atChina Zun | |||||||
Native name | 中国中信集团有限公司 | ||||||
|---|---|---|---|---|---|---|---|
| Company type | State-owned enterprise | ||||||
| Industry | Conglomerate | ||||||
| Founded | July 1, 1979; 46 years ago (1979-07-01) | ||||||
| Founder | Rong Yiren | ||||||
| Headquarters | , China | ||||||
Key people |
| ||||||
| 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 | ||||||
| |||||||
| 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] | |||||||
CITIC Group Corporation Ltd., formerly theChina International Trust & Investment Corporation (CITIC), is astate-ownedinvestment company of thePeople's Republic of China, established byRong Yiren in 1979 with the approval ofDeng Xiaoping.[3] Its headquarters are inChaoyang District,Beijing.[4] As of 2019,[update] it isChina's biggeststate-runconglomerate[5] with one of the largest pools offoreign assets in the world.[6] In 2023, the company was ranked 71st in theForbes Global 2000.[7]
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 includingChina CITIC Bank,CITIC Limited, CITIC Trust and CITIC Merchant (mainlybanks) inmainland China,Hong Kong, theUnited States,Canada,Australia andNew Zealand.[citation needed]
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CITIC Group was founded as theChina International Trust Investment Corporation (Chinese:中国国际信托投资公司;abb.CITIC), aChinese state-owned enterprise in 1979. In the 1980s, Chinese government founded many for profit corporations, which CITIC was under the leadership ofRong 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 subsidiaryCITIC 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 theIntelligence 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-basedCITIC Bank was founded by the group in 1984.[9] The group also acquired 12.5% stake of the Hong Kong flag carrierCathay Pacific in 1987,[9] and became a member of ashareholders' agreement in 2006;[11] the stake was sold to fellow state-owned companyAir China in 2009.[12] The group also acquired Hong Kong–basedKa 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 airlineDragonair, 20% stake ofHong Kong Telecom, etc.[9]
CITIC also acquired a Hong Kong listed company and renamed toCITIC Pacific in the 1990s.[citation needed]
Beginning in 2008, CITIC Group had the lead role in developingQuilamba 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 lostHK$14.7 billion (US$1.9 billion, when accounted for inmark-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 ofCITIC Limited to a joint-venture ofItochu andCharoen Pokphand forHK$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 forHK$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]
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 groupJ&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]
