CITIC Group Corporation Ltd., formerly the China International Trust Investment Corporation (CITIC), is a
state-owned investment company
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the ...
of the
People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, established by
Rong Yiren
Rong Yiren (; May 1, 1916 – October 26, 2005) was the Vice President of the People's Republic of China from 1993 to 1998 and was heavily involved with the opening of the Chinese economy to western investment. Rong is known both in China and ...
in 1979 with the approval of
Deng Xiaoping
Deng Xiaoping (22 August 1904 – 19 February 1997) was a Chinese revolutionary leader, military commander and statesman who served as the paramount leader of the People's Republic of China (PRC) from December 1978 to November 1989. After CC ...
. Its headquarters are in
Chaoyang District,
Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
. As of 2019, it is
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
's biggest
state-run conglomerate with one of the largest pools of
foreign assets in the world.
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." It now owns 44 subsidiaries including
China CITIC Bank
China CITIC Bank () is China's seventh-largest lender in terms of total assets. It was known as CITIC Industrial Bank until it changed its name in August 2005. China CITIC Bank, established in 1987, is a nationally comprehensive and internationa ...
,
CITIC Limited
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
, CITIC Trust and CITIC Merchant (mainly
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
s) in
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
,
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
, the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
,
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
,
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
and
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
.
History
CITIC Group was founded as the China International Trust Investment Corporation (;
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
Rong Yiren (; May 1, 1916 – October 26, 2005) was the Vice President of the People's Republic of China from 1993 to 1998 and was heavily involved with the opening of the Chinese economy to western investment. Rong is known both in China and ...
, 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.
[ His son, ]Larry Yung
Larry Yung Chi-kin or Rong Zhijian (; born 31 January 1942) is a Chinese businessman and the former chairman of CITIC Pacific, a Hong Kong-based Conglomerate (company), conglomerate. According to Hurun Report, he was one of the wealthiest people ...
,[Yung was another transliteration of the same surname: .] was the former chairman of CITIC Group's listed subsidiary CITIC Pacific
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
. Larry also led the Hong Kong office and parent company of CITIC Pacific since 1986; Larry became a Hong Kong-based businessman since 1978.[
CITIC Group headquarters was based in Beijing; Hong Kong office was formally opened in 1985.][ The Mainland-based CITIC Bank was founded by the group in 1984.] The group also acquired 12.5% stake of the Hong Kong flag carrier Cathay Pacific
Cathay Pacific Airways Limited (CPA), more widely known as Cathay Pacific (), is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport. The airline's operations and subsidiaries have sc ...
in 1987,[ and became a member of a ]shareholders' agreement
A shareholders' agreement (sometimes referred to in the U.S. as a stockholders' agreement) (SHA) is an agreement amongst the shareholders or members of a company. In practical effect, it is analogous to a partnership agreement. It can be said that ...
in 2006; the stake was sold to fellow state-owned company Air China
Air China Limited () is the flag carrier of the People's Republic of China and one of the "Big Three" mainland Chinese airlines (alongside China Southern Airlines and China Eastern Airlines). Air China's headquarters are in Shunyi District, ...
in 2009. The group also acquired Hong Kong-based Ka Wah Bank
Ka Wah Bank Limited (Traditional Chinese: 嘉華銀行有限公司) (Former stock code: ) was a bank in Hong Kong. It was acquired by CITIC International Financial Holdings and renamed as CITIC Ka Wah Bank Limited (Traditional Chinese: 中信 ...
in 1986.[ In 1990, the group also absorbed some of the subsidiaries of another state-owned company, . Other notable acquisitions included 38.3% stake of another airline ]Dragonair
Hong Kong Dragon Airlines Limited (), also known as Cathay Dragon () and Dragonair, was a Hong Kong-based international regional airline, with its corporate headquarters and main hub at Hong Kong International Airport. In the final year be ...
, 20% stake of Hong Kong Telecom
HKT Limited (), also known as Hong Kong Telecom (), is one of the largest telecommunications companies of Hong Kong. It has a dominant position in fixed-line, mobile, IDD and broadband services in Hong Kong. HKT Group is a subsidiary of PCCW ...
, etc.[
CITIC also acquired a Hong Kong listed company and renamed to ]CITIC Pacific
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
in the 1990s. Part of the assets of the group were injected into the listed company as reverse IPO, including the stake of aforementioned Cathay Pacific. A full reverse IPO took place in 2014.
2000s
Its subsidiary, CITIC Pacific
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
(, now known as CITIC Limited), made unauthorized bets on the foreign currency market in October 2008 and lost HK$
The Hong Kong dollar (, sign: HK$; code: HKD) is the official currency of the Hong Kong Special Administrative Region. It is subdivided into 100 cents or 1000 mils. The Hong Kong Monetary Authority is the monetary authority of Hong Kong and ...
14.7 billion (US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
1.9 billion, when accounted for in mark-to-market
Mark-to-market (MTM or M2M) or fair value accounting is accounting for the " fair value" of an asset or liability based on the current market price, or the price for similar assets and liabilities, or based on another objectively assessed "fair ...
terms). Senior executives such as Financial Controller Chau Chi-Yin and Group Finance Director Leslie Chang resigned. Its stock price plunged 55.1 percent upon the resumption of trade.
CITIC Group injected most of their assets to CITIC Limited
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
in 2014. However, CITIC Guoan Group
CITIC Guoan Group Co., Ltd. is a Chinese company. The company itself was founded by CITIC Group (who currently owns a 20.95% stake). CITIC Guoan Group is the largest shareholder of CITIC Guoan Information Industry, CITIC Guoan Wine and Global ...
was excluded, which was recapitalized by other private capital.
In 2015, CITIC Group sold 10% stake of CITIC Limited
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
to a joint-venture of Itochu
is a Japanese corporation based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo.
It is one of the largest Japanese ''sogo shosha'' (general trading companies). Among Japanese trading companies, it is distinguished by not being descend ...
and Charoen Pokphand
The Charoen Pokphand Group Company, Ltd. (CP) (; ) is a Thai conglomerate based in Bangkok. It is Thailand's largest private company and the largest privately held Royal Warrant holder of the Thai Royal Family. The company describes itself as havi ...
for HK$
The Hong Kong dollar (, sign: HK$; code: HKD) is the official currency of the Hong Kong Special Administrative Region. It is subdivided into 100 cents or 1000 mils. The Hong Kong Monetary Authority is the monetary authority of Hong Kong and ...
34.4 billion
Billion is a word for a large number, and it has two distinct definitions:
*1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is its only current meaning in English.
* 1,000,000,000,000, i. ...
(US$4.54 billion); the joint venture also subscribed new convertible preferred shares for HK$45.9 billion (or US$5.9 billion). It was reported it was the largest investment ever made by a Japanese general trading company. 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.
In 2016, CITIC Group ranked 156th among the Fortune Global 500
The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine.
Methodology
Until 1989, it listed onl ...
, with an annual revenue of $55,938 million.
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.
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. Several days later, CEFC Shanghai defaulted on $327 million in bond payments, and offered to make the payments six months after the maturity date.
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.
Group companies
* CITIC Limited
CITIC Limited () is a conglomerate headquartered in Hong Kong. Its shares are listed on the Main Board of the Hong Kong Stock Exchange, and it is a constituent of the Hang Seng Index. 58% of its issued shares are owned by the Chinese state-own ...
, a subsidiary of CITIC group in Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
** CITIC Trust
CITIC Trust Co., Ltd. is a Chinese investment management company, with license to create private equity fund (as trust). The company was a subsidiary of CITIC Group. However, after a reverse takeover, CITIC Limited () became the parent company for ...
** China CITIC Bank
China CITIC Bank () is China's seventh-largest lender in terms of total assets. It was known as CITIC Industrial Bank until it changed its name in August 2005. China CITIC Bank, established in 1987, is a nationally comprehensive and internationa ...
*** CITIC International Financial Holdings CITIC International Financial Holdings Limited (shortened to "CIFH", former stock code ) is the financial flagship company of the CITIC Group outside mainland China. It is the holding company of CITIC Bank International, has a 50% stake in CITIC Ca ...
**** CITIC Bank International
China CITIC Bank International Limited (Chinese: 中信銀行(國際), CNCBI in short) is a full-service commercial bank in Hong Kong. China CITIC Bank Corporation Limited, via its wholly-owned subsidiary CITIC International Financial Holdings ...
* CITIC Resources
* CITIC Construction
CITIC Construction is the construction and engineering subsidiary of the CITIC Group, a Chinese state owned conglomerate. With US$2.73 billion in revenue in 2011, the company is ranked among the 100 largest construction companies in the world.
...
* CITIC Newedge
* CITIC Real Estate
* CITIC Capital
** Amoy Food
Amoy Food Limited is a manufacturer of cooking sauces and condiments in Hong Kong. Its products, which now include foodstuffs such as frozen foods and instant foods for heating in a microwave oven, are sold around the world. It was acquired in 2 ...
* CITIC Metal Group
* CITIC press
Equity investments
* CITIC Guoan Group
CITIC Guoan Group Co., Ltd. is a Chinese company. The company itself was founded by CITIC Group (who currently owns a 20.95% stake). CITIC Guoan Group is the largest shareholder of CITIC Guoan Information Industry, CITIC Guoan Wine and Global ...
(20.95%)
* CITIC Securities
CITIC Securities Co., Ltd. is a Chinese full-service investment bank. It offers services in underwriting, research, brokerage, asset management, wealth management, and investment advisory. CITIC Securities was established in 1995 and it is headq ...
See also
* CITIC Plaza
China International Trust and Investment (CITIC) Plaza () is an 80-storey, office skyscraper in the Tianhe District of Guangzhou, Guangdong, People's Republic of China. Its structural height includes two antenna-like spires on the top. Complete ...
, a skyscraper
A skyscraper is a tall continuously habitable building having multiple floors. Modern sources currently define skyscrapers as being at least or in height, though there is no universally accepted definition. Skyscrapers are very tall high-ris ...
in Guangzhou
Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
* CITIC Tower
CITIC Tower ( zh, 中信大廈) is a 33-storey office building on Tim Mei Avenue, Admiralty, Hong Kong, Admiralty, Hong Kong. It is the corporate headquarters of CITIC Limited, CITIC Pacific Ltd, a conglomerate (company), conglomerate publicly ...
, a skyscraper in Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
*CITIC Heavy Industries
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. ...
in Luoyang
Footnotes
References
External links
Official web
{{authority control
Government-owned companies of China
Companies based in Beijing
Conglomerate companies established in 1979
Chinese companies established in 1979
Chinese brands
Conglomerate companies of China
Multinational companies headquartered in China
Chaoyang District, Beijing
Ministry of Finance of the People's Republic of China
1979 establishments in China