Citic Group rescues troubled Hong Kong affiliate

Investment company Citic Group has come to the rescue of its ailing Hong Kong affiliate Citic Pacific by lending HK$11.6 billion to cover its bad currency debts of over HK$15 billion.

The bailout news saw Hong Kong-traded Citic Pacific's shares, which resumed trading yesterday after a suspension, rise 9.24 percent to close at HK$6.62.

In a statement, Citic Pacific said its Beijing-based parent Citic Group will provide standby credit of HK$11.6 billion by buying its convertible bonds.