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20-539: Its initial aim was to "attract and utilize foreign capital, introduce advanced technologies, and adopt advanced and scientific international practice in operation and management." It now owns 44 subsidiaries including China CITIC Bank , CITIC Limited , CITIC Trust and CITIC Merchant (mainly banks ) in Mainland China , Hong Kong , the United States , Canada , Australia and New Zealand . CITIC Group

40-539: A common misconception known as the "bank analogy". Unlike commercial banks, central banks are not primarily focused on generating profits and cannot become insolvent in the same way as commercial banks in a fiat currency system. The name bank derives from the Italian word banco 'desk/bench', used during the Italian Renaissance era by Florentine bankers, who used to carry out their transactions on

60-680: A desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times. In the United States, the term commercial bank was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression , through the Glass–Steagall Act , the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation

80-495: Is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit . It can also refer to a bank or a division of a larger bank that deals with corporations or large or middle-sized businesses, to differentiate from retail banks and investment banks . Commercial banks include private sector banks and public sector banks. However, central banks function differently from commercial banks, despite

100-526: The bank was based on the original finance department, expanding its operations regarding external financing, foreign exchange transactions, loans, international settlement, finance leases and deposits. In April 1987, the bank was formally established as a separate legal entity, following approval from the People's Bank of China and the State Council of China . China CITIC Bank's businesses flourished in

120-606: The bank welcomed its first major foreign investment, when BBVA , the second largest bank in Spain , became a major shareholder. This move established a co-operative relationship. On 27 April 2007, China CITIC Bank was listed on the Hong Kong and Shanghai stock exchanges. In May 2017 the A share of the company was removed from the constituents of SSE 50 Index ; it remained in SSE 180 Index . Commercial bank A commercial bank

140-488: The bond's sole underwriter CITIC CLSA. China CITIC Bank China CITIC Bank is a major commercial bank in China, under CITIC Group . Established in 1987, it is a nationally comprehensive and internationally oriented commercial bank. The bank operates in Hong Kong, Macau, New York, Los Angeles, Singapore and London, and maintains a strong foothold on the mainland banking industry. The bank operates 163 branches in

160-519: The borrower. Instead, they open a deposit account from which the borrower can withdraw. In other words, while sanctioning a loan, they automatically create deposits. Regulations In most countries, commercial banks are heavily regulated and this is typically done by a country's central bank . They will impose a number of conditions on the banks that they regulate such as keeping bank reserves and to maintain minimum capital requirements . They also require some capital Commercial banks generally provide

180-436: The company that manages the troubled assets, contracted to buy 5.01 percent of Citic Limited for HK $ 13.6 billion (US$ 1.7 billion). Huarong will acquire a stake from CITIC Group’s subsidiary, Citic Polaris. In addition, Huarong plans to change the name to China Citic Financial Asset Management. The deal is a return on the investment that CITIC invested in 2021, leading the rescue of Huarong. In November 2016, CITIC CLSA acted as

200-485: 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

220-571: The first decade of the 21st century. In July 2000, CITIC bank became the first bank in China to be certified by the China Financial Certificate Authority for online banking. In July 2002, the bank improved its international standing by ranking 291st on the "Top 1000 World Banks" list released by The Banker magazine of the United Kingdom , ranking within the top 300 for the first time. In November 2006,

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240-534: 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 Chau Chi-Yin and Group Finance Director Leslie Chang resigned. Its stock price plunged 55.1 percent upon the resumption of trade. In 2015, CITIC Group sold 10% stake of CITIC Limited to a joint-venture of Itochu and Charoen Pokphand for HK$ 34.4  billion (US$ 4.54 billion);

260-660: The group also absorbed some of the subsidiaries of another state-owned company, 中国康华发展总公司 . Other notable acquisitions included 38.3% stake of another airline Dragonair , 20% stake of Hong Kong Telecom , etc. CITIC also acquired a Hong Kong listed company and renamed to CITIC Pacific in the 1990s. Beginning in 2008, CITIC Group had the lead role in developing Quilamba in Angola as part of an exchange of Chinese construction materials and expertise for Angolan natural resources. Its subsidiary, CITIC Pacific ( Chinese : 中信泰富 , now known as CITIC Limited), made unauthorized bets on

280-415: The joint venture also subscribed new convertible preferred shares for HK$ 45.9 billion (or US$ 5.9 billion). It was reported it was the largest investment ever made by a Japanese general trading company. 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. In 2023, China Huarong Asset Management ,

300-590: The mainland, and 1,252 sub-branches, located in economically developed regions of China. In 1984, the chairman of CITIC group at the time, Rong Yiren (荣毅仁), requested that the Chinese government create a banking division under his company, to fully embody the needs for foreign exchange. This move was approved by the People's Bank of China , and a banking division was created under CITIC group in April 1985. At this point,

320-439: The sole bookrunner for CEFC Shanghai's US$ 250 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

340-482: Was based in Beijing; Hong Kong office was formally opened in 1985. The Mainland-based CITIC Bank was founded by the group in 1984. The group also acquired 12.5% stake of the Hong Kong flag carrier Cathay Pacific in 1987, and became a member of a shareholders' agreement in 2006; the stake was sold to fellow state-owned company Air China in 2009. The group also acquired Hong Kong–based Ka Wah Bank in 1986. In 1990,

360-524: Was founded as the China International Trust Investment Corporation ( Chinese : 中国国际信托投资公司 ; abb. CITIC ), a Chinese state-owned enterprise in 1979. In the 1980s, Chinese government founded many for profit corporations, which CITIC was under the leadership of Rong Yiren , a former businessman and politician at that time, who chose to stay in the mainland China in the 1950s after his family business

380-471: Was mostly repealed in 1999 by the Gramm–Leach–Bliley Act . The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks. While sanctioning a loan to a customer, they do not provide cash to

400-598: Was nationalized. His son, Larry Yung , was the former chairman of CITIC Group's listed subsidiary CITIC Pacific . Larry also led the Hong Kong office and parent company of CITIC Pacific since 1986; Larry became a Hong Kong–based businessman since 1978. Throughout the 1980s, Xiong Xianghui served as CITIC vice chair and significant CITIC leadership was drawn from the Intelligence Bureau of the Joint Staff Department . CITIC Group headquarters

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