CITIC mulls CLSA stake to drive overseas expansion

CITIC Securities, the largest mainland brokerage by assets, is in talks to acquire a minority stake in Hong Kong-based brokerage CLSA Asia-Pacific Markets in a bid to expand business overseas, the Century Weekly magazine reported yesterday.

The securities firm is likely to purchase a small stake because the target company's asking price is high and the two sides have yet to reach a final purchase agreement, the report said.

"The brokerage business is pretty competitive in Hong Kong. Many Hong Kong securities firms are turning to the mainland for good cash-rich buyers and this creates opportunities for us," a source close to CITIC Securities told China Daily.