China Securities to receive RMB4.6bn bailout
12 August 2005
China Securities will receive a RMB4.6bn capital injection under a bailout plan announced Thursday, The South China Morning Post reported. The restructuring of China Securities will enable Citic Securities, the larger of two mainland-listed securities houses, to expand its business. Under the deal, Citic Securities will set up an investment company with China Jianyin Investment, the wholly state-owned firm born out of last year's split of China Construction Bank. The new entity will inherit the entire securities business and related assets of China Securities, according to a Citic Securities statement to the Shanghai Stock Exchange, where its yuan-denominated A shares are quoted. Citic Securities will contribute RMB1.62bn, or 60% of the new firm's initial registered capital of RMB2.7bn, with Jianyin contributing the remainder to become a 40% shareholder.