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

investment bank Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

. 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 liability ...

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 to ...

brokerage A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done 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. Neith ...

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

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-hi ...

, and investment advisory. CITIC Securities was established in 1995 and it is headquartered in

Shenzhen Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...

, Guangdong Province. By mid-2020, it was among China's four largest securities firms, together with Guotai Junan Securities, GF Securities, and Haitong Securities.

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 ...

(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. It is one of the largest stock exchanges in Asia and the List of major stock exchanges, 9th largest globally by market ...

(HKEX).

Awards

In 2011, CITIC Securities was awarded the "Best Equity House in China" and "Best Broker in China" by FinanceAsia; "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'' and edited in London, United Kingdom. The magazine was first published in January 1926 through founding editor Brendan ...

. The research team have been awarded "Best Local Research Team" by New Fortune in six consecutive years.

Acquisitions

In July 2012, CITIC Securities agreed to acquire

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

's Asia brokerage and research unit CLSA 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, 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 Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

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 2015, 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 in the FTSE China A50 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