CITIC to privatize arm listed in HK

HONG KONG: State-owned financial conglomerate CITIC Group will pay lower than expected to privatize its Hong Kong-listed arm CITIC International Financial Holdings (CIFH) and will finally inject it into mainland-based China CITIC Bank.

The privatization is widely believed to be part of CITIC Group's effort to facilitate the restructuring of its mainland and overseas financial platform, forming a tripartite collaboration between CIFH, CITIC Bank and CITIC Ka Wah Bank, a fully owned commercial bank of CIFH.

"Following the trend of internationalization of its mainland peers, the injection of CIFH into CITIC Bank can help the mainland bank tap into global opportunities through a unified brand," said Chang Zhenming, vice-chairman and president of CITIC Group.