CITIC Group

Not to be confused with Citigroup, another large financial services company.

Not to be confused with CIT Group, another large financial services company.

CITIC Group
中国中信集团公司

Type	State-owned enterprise
Industry	Investment company
Founded	1979
Founder(s)	Rong Yiren
Headquarters	Beijing, People's Republic of China
Area served	People's Republic of China
Key people	Chang Zhenming (Chairman)
Products	Financial Services, Banking
Owner(s)	Central People's Government
Divisions	44 subsidiaries
Website	citic.com/wps/portal/encitic

The CITIC Group (Chinese: 中国中信集团公司, Zhōngguó 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 (榮毅仁) in 1979 with the approval of Deng Xiaoping. Its headquarters are in Chaoyang District, Beijing.^[1]

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."^[2] 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.

CITIC Group is considering a $12 billion listing in Hong Kong.

History

The founder of CITIC, Rong Yiren, is the son of one of the richest businessmen in China in the 1930s, Rong Desheng (榮德生). He was also one of the few capitalists who stayed in mainland China after 1949. Rong Yiren later became the vice-president of the People's Republic of China in 1993, and stepped down in 1997.

CITIC Group is 中国中信集团公司 in Chinese, while CITIC Pacific is 中信泰富 in Chinese. CITIC Pacific is a subsidiary of CITIC.

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, 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.^[3][4][5] Its stock price plunged 55.1 percent upon the resumption of trade.^[6]

See also

	People's Republic of China portal
	Companies portal

• CITIC International Financial Holdings Limited
• Wuhan International Trust and Investment Corporation
• CITIC Securities
• China CITIC Bank
• CITIC Pacific, a subsidiary of CITIC group in Hong Kong
• CITIC Plaza, a skyscraper in Guangzhou, PRC
• CITIC Tower（中信大廈）, a skyscraper in Hong Kong
• CITIC Ka Wah Bank
• CITIC Resources
• CITIC Newedge

References

1. ^ "Contact Us." CITIC Group. Retrieved on August 13, 2011. "Address: Chaoyang District, Beijing Xin Yuan Nan Road Building in Beijing on the 6th"
2. ^ http://www.citic.com/english/about/index.html
3. ^ Keith Bradsher (20 October 2008). "Citic Pacific could lose $2 billion from foreign exchange trading". International Herald Tribune. http://www.nytimes.com/2008/10/20/business/worldbusiness/20iht-citic.3.17108990.html?scp=1&sq=2008/10/20%20Citic&st=cse. 
4. ^ Alison Leung, Ruth Wong (20 October 2008). "CITIC Pacific warns potential $2 billion forex losses". Reuters. http://www.reuters.com/article/forexNews/idUSTRE49J5NI20081020. 
5. ^ http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=73153&sid=21085671&con_type=3
6. ^ http://hk.news.yahoo.com/article/081021/3/8tvg.html

• http://de.reuters.com/article/idUKTRE66M08R20100723

External links

• CITIC website
• CITIC website (Chinese)