While the details are still being finalized, the Communist Party committees of Citic Securities and CSC, which are key in deciding corporate strategy, have approved the blueprint, said the people. Citic Group is now lobbying the State Council for support before presenting the details to Central Huijin, they said.
(July 3): China is speeding up the process of potentially merging its two biggest investment banks, in a move that would create a $82 billion ($114.29 billion) powerhouse and may spark a wave of consolidation among the country’s more than 130 brokers.
In the latest proposal, Citic Group, the parent of China’s largest broker Citic Securities Co., will act as the main buyer of a stake in CSC Financial Co., the nation’s No. 2, according to people familiar with the matter. Citic Group would buy the stake from state-controlled shareholder Central Huijin Investment Ltd., making it the largest shareholder and pave the way for a consolidation of resources and operations, said the people, who asked not to be identified as the matter is private.
