CITIC Limited

Hong Kong conglomerate

For the parent company, see CITIC Group.

CITIC Limited

Headquarters at CITIC Tower

Native name

| 中國中信股份有限公司
Formerly| CITIC Pacific
Company type|

* Partial state-owned enterprise
* listed company

Traded as

* SEHK: 267
* Hang Seng Index component

Industry| Conglomerate
Founded| 1990; 35 years ago (1990), in the British Hong Kong
Headquarters| CITIC Tower, Hong Kong Island,

Hong Kong

Area served

| China

Key people

* Chang Zhenming (chairman)
* Wang Jiong (Vice-chairman)
* Li Qingping (Executive Director)
* Pu Jian (Executive Director)

Revenue|  HK$416.8 billion (2015)

Operating income

|  HK$89.5 billion (2015)

Net income

|  HK$41.8 billion (2015)
Total assets|  HK$6,803.3 billion (2015)
Total equity|  HK479.1 billion (2015)
Owner|

* CITIC Group
* Itochu-CP joint venture
* National Social Security Fund
* general public

Number of employees

| 287,910
Parent| CITIC Group
Website| www.citic.com
Footnotes / references
in a consolidated basis (equity and profit excluding perpetual and minority interests)[1]

CITIC Limited (Chinese: 中國中信股份有限公司) 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-owned CITIC Group.[2]

It is principally engaged in financial services, resources and energy, manufacturing, engineering contracting, real estate and other businesses.

## History

[edit]

This section needs expansion. You can help by adding to it. (October 2016)

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### 2008 Foreign exchange losses controversy

[edit]

In October 2008, the chairman Larry Yung disclosed that the firm lost HK$15 billion (US$2 billion) due to "unauthorized trades".[3] The unauthorised trades were hedges with a contract value of A$9 billion against the Australian dollar, taken out to cover against a A$1.6 billion prospective acquisition and capital expenditure. Losses were incurred on the contracts when the currency declined from 98.5% against the US dollar to less than 70%.[4] Its parent company, CITIC Group pledged its support to this subsidiary.[3]

The board became aware of this on 7 September 2008, and disclosure was made to the financial markets after trading in its shares was suspended on 20 October. The company and the Hong Kong Securities and Futures Commission faced questions by legislators about the severe delays in their disclosure,[5] considering the company made a[6] pursuant to a proposed acquisition, that as at 9 September 2008, "the Directors are not aware of any material adverse change in the financial or trading position of the Group since 31 December 2007".[5] When the shares resumed trading, the share price had fallen by some 75% since the previous close.[7]

As a result of the revelations, two officers were forced to resign in disgrace.[8][9] Due to her involvement in the loss, the chairman's daughter was demoted. The chairman claimed his daughter Frances Yung had not informed him about the situation before its discovery.[3] Managing director Henry Fan temporarily stepped down from the Executive Council and the chairmanship of the Mandatory Provident Fund Schemes Authority, and all other major public positions he held with effect 24 October 2008.[10]

On 3 April 2009, trading in CITIC Pacific shares was once again suspended,[11] and the Hong Kong Police searched the company's office as part of an investigation into whether the company directors had made false statements about the foreign-exchange contracts, as well as company announcements made between July 2007 and March 2009, or had conspired to defraud.[7] On 8 April, chairman Larry Yung resigned, citing the effect of the Commercial Crimes Bureau's visit to the company on public opinion; managing director Henry Fan resigned at the same time. They were replaced by Chang Zhenming, the Chairman of the CITIC Group.[12]

### Recent history

[edit]

CITIC Pacific bought most of the assets from the parent company and issued new shares to the parent, making most of the assets of CITIC Group were listed in a stock exchange. However, CITIC Group still retained the stake in CITIC Guoan Group.

In 2014 the name of the company was also changed from CITIC Pacific Limited (Chinese: 中信泰富有限公司) to just CITIC Limited (Chinese: 中國中信股份有限公司).[13]

On 20 January 2015, the Japanese general trading company Itochu and its Thai cross-shareholding affiliate Charoen Pokphand announced an investment of approx. HK$80 billion (US$10.4 billion) in CITIC Limited, the largest investment ever made by a Japanese general trading company.[14] 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.[15]

The deal saw Chia Tai Bright Investment, a 50–50 joint venture of Itochu and Charoen Pokphand, acquire a 10% stake of CITIC Limited from CITIC Group for HK$34.4 billion (US$4.54 billion), as well as subscribing new convertible preferred shares for HK$45.9 billion (US$5.9 billion).[16] Before the deal, CITIC Group owned 77.90% stake, with National Social Security Fund owned an additional 5.00%, making only 17.1% shares of CITIC Limited were free float at 31 December 2014.[13] The company also had HK$13.834 billion perpetual capital securities at 31 December 2014.[13]

On 9 January 2017 the consortium of CITIC Limited, private equity funds of CITIC Capital and Carlyle, bought 80% stake of the franchise rights of McDonald's in Hong Kong and mainland China, for a total consideration of up to US$2.08 billion. CITIC Limited and CITIC Capital would own 52% stake collectively (via an intermediate holding, Fast Food Holdings in a 61.54–38.46 ratio, indirectly owned 32% and 20% stake respectively), while Carlyle would own 28% separately. 20% stake would be retained by McDonald's via Golden Arches Investments Limited (the trading name of McDonald's Hong Kong).[17] In January 2020, CITIC invited other investors to buy most of their stake in the aforementioned Fast Food Holdings.[18][19]

## Subsidiaries

[edit]

* CITIC Trust (100%)
* CITIC Pacific Limited (100%)
* Tamar Alliance (100%)

## Equity investments

[edit]

* Beijing Sinobo Guoan F.C. (36%)
* AsiaSat (37.22% via a joint venture)

## References

[edit]

1. ^ "2015 Annual Report" (PDF). CITIC Limited. archive of Hong Kong Stock Exchange. 15 April 2016. Retrieved 20 October 2016.
2. ^ "CITIC (00267.HK) – Corporate Information". aastocks.com. Retrieved 10 February 2019.
3. ^ a b c Carol Chan (22 October 2008) "Daughter demoted", Pg A1, South China Morning Post
4. ^ Maria Chan (22 October 2008) "Company exposed itself to high levels of risk", Pg A3, South China Morning Post
5. ^ a b Dennis Eng & Fanny Fung (22 October 2008) "SFC urged to launch Citic Pacific probe", Pg A3, South China Morning Post
6. ^ CITIC Pacific (16 September 2008) "DISCLOSEABLE AND CONNECTED TRANSACTION", HK Ex
7. ^ a b Jonathan Cheng & Carlos Tejada (6 April 2009), Citic Pacific Raided Over Currency Bets, The Wall Street Journal
8. ^ Associated Press (21 October 2008) HK's Citic Pacific faces US$2B loss on forex bets[permanent dead link], International Business Times
9. ^ "CITIC Pacific warns potential $2 billion forex losses" Reuters (20 October 2008)
10. ^ Nickkita Lau (29 October 2008) Under-pressure Fan steps further out of public eye Archived 3 February 2009 at the Wayback Machine, The Standard
11. ^ Mandy Lo (6 April 2009), Possible CITIC reshuffle may hit share price Archived 9 September 2009 at the Wayback Machine, The Standard
12. ^ CITIC Pacific chairman resigns in management reshuffle, Xinhua, 8 April 2009
13. ^ a b c 2014 Annual Report (PDF) (Report). CITIC Limited. 17 April 2015. Retrieved 20 October 2016 - via Hong Kong Exchanges and Clearing Limited website.
14. ^ "Itochu, CP to jointly invest 1 trillion yen in China's Citic Group". Nikkei Asian Review. 20 January 2015. Retrieved 22 January 2015.
15. ^ Fukase, Atsuko (20 January 2015). "Thaw in Japan-China Business Ties? Itochu's Citic Deal Towers Above Others". "Japan Real Time" blog. The Wall Street Journal. Retrieved 22 January 2015.
16. ^ "CITIC Limited Receives Investment from Charoen Pokphand Group and ITOCHU" (PDF). Itochu, Charoen Pokphand and CITIC Group. 20 January 2015. Retrieved 20 October 2016.
17. ^ "VOLUNTARY ANNOUNCEMENT: ACQUISITION OF A CONTROLLING INTEREST IN MCDONALD'S MAINLAND CHINA AND HONG KONG BUSINESSES" (PDF) (Press release). CITIC Limited. 9 January 2017. Retrieved 13 January 2017 - via Hong Kong Exchanges and Clearing Limited website.
18. ^ Hong Jinshan; Chan, Cathy (8 January 2020). "Citic to Sell 22% Stake in McDonald's China for $300 Million". Bloomberg L.P. Retrieved 8 January 2020.
19. ^ Fast Food Holdings Limited 42.31%股权 (in Chinese (China)). China Beijing Equity Exchange. 8 January 2020. Retrieved 8 January 2020.

## External links

[edit]

*   * Business data for CITIC Limited:

* Google
* Reuters
* Yahoo!

* "history of CITIC Pacific Special Steel Holdings". steelonthenet.com. n.d. Retrieved 20 September 2022.

* v
* t
* e

CITIC Group

Subsidiaries|

| CITIC Limited|

* China CITIC Bank
* CITIC International Financial Holdings
* CITIC Bank International
* CITIC Capital
* CITIC Financial Asset Management
* CITIC Pacific Special Steel
* CITIC Trust
* Dah Chong Hong

|

Other|

* CITIC Construction
* CITIC Resources
* CITIC Telecom CPC
* CITIC Telecom International
* CITIC Offshore Helicopter
* CITIC Publishing
* CITIC 1616 Holdings

* Former subsidiaries
* (now equity investments)

* AsiaSat
* Baiyin Nonferrous
* Beijing Sinobo Guoan F.C.
* CITIC Guoan Group
* CITIC Guoan Information Industry
* CITIC Guoan Wine
* CITIC Securities
* CITIC Private Equity

* v
* t
* e

Constituents of Hang Seng Index

Finance|

* HSBC
* Hang Seng Bank
* Hong Kong Exchanges and Clearing
* China Construction Bank
* AIA Group
* Industrial and Commercial Bank of China
* Ping An Insurance
* Bank of China (Hong Kong)
* China Life Insurance Company
* China Merchants Bank
* Bank of China

Utilities|

* CLP Group
* The Hong Kong and China Gas Company
* Power Assets Holdings
* China Resources Power
* CK Infrastructure Holdings
* ENN Energy

Properties|

* Henderson Land Development
* Sun Hung Kai Properties
* New World Development
* Hang Lung Properties
* China Overseas Land and Investment
* Link REIT
* Longfor Properties
* China Resources Land
* CK Asset Holdings
* China Resources Mixc Lifestyle
* Wharf Real Estate Investment Company
* Country Garden

Commerce
and
Industry|

* CK Hutchison Holdings
* Galaxy Entertainment Group
* MTR Corporation
* Geely Auto
* Alibaba Health
* CITIC Limited
* WH Group
* China Resources Beer
* Orient Overseas (International) Limited
* Tingyi
* Sinopec
* Techtronic Industries
* Tencent
* China Unicom
* PetroChina
* Xinyi Glass
* Zhongsheng Group
* CNOOC Limited
* China Mobile
* Xinyi Solar
* Semiconductor Manufacturing International Corporation
* Lenovo
* Hengan International
* China Shenhua Energy
* CSPC Pharmaceutical Group
* Sinopharm Group
* Sino Biopharmaceutical Limited
* BYD Company
* China Hongqiao Group
* Xiaomi
* Budweiser Brewing Company APAC
* Sands China
* Chow Tai Fook
* Li Auto
* Anta Sports
* WuXi Biologics
* Shenzhou International
* Mengniu Dairy
* Li-Ning
* WuXi AppTec
* Sunny Optical
* Zijin Mining
* Meituan
* Hansoh Pharmaceutical
* JD Health
* Haier
* Haidilao
* JD.com
* Nongfu Spring
* Baidu
* Trip.com Group
* Alibaba Group
* NetEase

Links to related articles

* v
* t
* e

Hang Seng China Enterprises Index companies of Hong Kong

* Agricultural Bank of China
* Alibaba Group
* Alibaba Health
* Anta Sports
* Baidu
* Bank of China
* Bank of Communications
* Bilibili
* BYD Company
* CG Services
* China Construction Bank
* China Feihe
* China Gas
* China Life Insurance Company
* China Merchants Bank
* China Mobile
* China Overseas Land and Investment
* China Pacific Insurance Company
* China Resources Beer
* China Resources Land
* CITIC Limited
* CNOOC Limited
* Country Garden
* ENN Energy
* Geely Auto
* Haidilao
* ICBC
* Innovent Bio
* JD Health
* JD Logistics
* JD.com
* Kuaishou
* Lenovo
* Li-Ning
* Longfor Properties
* Meituan
* Mengniu Dairy
* NetEase
* Nongfu Spring
* Ping An Insurance
* Postal Savings Bank of China
* Shenzhou International
* Shijiazhuang Pharma Group
* Sino Biopharmaceutical Limited
* Sinopec
* SMIC
* Sunny Optical
* Tencent
* Xiaomi
* Xinyi Solar

* v
* t
* e

Charoen Pokphand

Subsidiaries|

* Charoen Pokphand Foods
* Concordian International School
* CP All
* 7-Eleven
* CP Axtra
* Lotus's
* Makro
* Super Brand Mall
* True Corporation
* TrueMove H
* DTAC
* TrueVisions
* Ascend Group
* Aden
* WeMall
* TrueMoney

Equity investments|

* CITIC Limited
* Ping An Insurance

People|

* Dhanin Chearavanont
* Chearavanont family

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