CITIC Securities Co., Ltd. is a Chinese full-service

investment bank Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

. It offers services in

underwriting Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liabili ...

research Research is "creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of evidence to increase understanding of a topic, characterized by a particular attentiveness ...

brokerage A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be con ...

asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high ...

, and

investment advisory An Investment advisory, in financial/investment organizations, is the unit linking the investment professionals in the central asset management unit (Investment Research, Portfolio Management) to the relationship managers and/or to important clien ...

. CITIC Securities was established in 1995 and it is headquartered in

Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern provi ...

Guangdong Province Guangdong (, ), alternatively romanized as Canton or Kwangtung, is a coastal province in South China on the north shore of the South China Sea. The capital of the province is Guangzhou. With a population of 126.01 million (as of 2020) ...

Listing

On January 6, 2003, CITIC Securities () was listed on the

Shanghai Stock Exchange The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Excha ...

(SSE). On October 6, 2011, CITIC Securities () was listed on the

Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is rep ...

(HKEX).

Awards

In 2011, CITIC Securities was awarded the "Best Equity House in China" and "Best Broker in China" by

FinanceAsia ''FinanceAsia'' is a Hong Kong-based publication reporting on Asia’s financial and capital markets through a daily website and monthly magazine. At the end of 2005, ''FinanceAsia'' was acquired by Haymarket Group, the largest privately owned pu ...

; "China Equity House" by the IFR Asia; "Most Innovative Investment Bank from Asia" by

The Banker ''The Banker'' is an English-language monthly international financial affairs publication owned by ''The Financial Times'' Ltd. and edited in London, United Kingdom. The magazine was first published in January 1926 through founding Editor, Bren ...

. The research team have been awarded “Best Local Research Team” by

New Fortune New is an adjective referring to something recently made, discovered, or created. New or NEW may refer to: Music * New, singer of K-pop group The Boyz Albums and EPs * ''New'' (album), by Paul McCartney, 2013 * ''New'' (EP), by Regurgitator ...

in six consecutive years.

Acquisitions

In July 2012, CITIC Securities agreed to acquire

Crédit Agricole Crédit Agricole Group (), sometimes called La banque verte ( en, The green bank) due to its historical ties to farming, is a French international banking group and the world's largest cooperative financial institution. It is France's second lar ...

's Asia brokerage and research unit

CLSA CLSA Ltd. (formerly known as Credit Lyonnais Securities Asia) is a capital markets and investment group focused on alternative investment, asset management, corporate finance and capital markets, securities and wealth management for corporate an ...

for $1.25 billion which 19.9 percent stake or $310.3 million will be bought in the first step and the remaining 80.1 percent stake or $941.7 million will be bought later. In August 2015, CITIC Securities was reported to be in advanced talks with London Stock Exchange Group Plc to buy

Russell Investments Russell Investments is an investment firm headquartered in Seattle, Washington. Corporate overview According to ''American Banker'', Russell Investments has approximately $300 billion of assets under management, as of September 2019. The firm r ...

, an asset management firm based in the US. However the discussions was suspended due to a series of investigations into top CITIC Securities executives by Chinese authorities. In October London Stock Exchange announced the sale of Russell Investments to TA Associates, a Boston

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...

firm for US$1.15 billion, much lower than US$1.8 billion offered by CITIC Securities.

Legal investigation

On August 25, 2015 the Chinese news media announced that several executives within CITIC Securities were under investigation for possible wrongdoing. In September 15, the CEO of CITIC Securities was suspected by Chinese police of leaking and trading on unspecified inside information. In December 2015, the head of CITIC Securities investment banking division and the head of overseas investment banking business were reported to be detained by authorities to assist investigation on potential

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...

and information leakage.

CITIC CEFC bond default

In November 2016, CITIC CLSA acted as the sole bookrunner for CEFC Shanghai's $250 USD 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.

References

External links

CITIC Securities

CITIC Securities Investor Relations
{{authority control Financial services companies established in 1995 Banks established in 1995 Companies listed on the Shanghai Stock Exchange Companies in the CSI 100 Index Companies listed on the Hong Kong Stock Exchange Investment banks in China Companies based in Shenzhen Government-owned companies of China Financial services companies of China CITIC Group H shares