CITIC injects cash ahead of IPO

China's biggest investment firm, CITIC Group, has pumped US$625 million into China CITIC Bank as it prepares for an initial public offering in Hong Kong that could raise as much as US$2 billion. A statement by CITIC International Financial Holdings, reported in Hong Kong's The Standard, said the injection of cash will improve the capital base of the Beijing-based bank. CITIC International's stake in the bank will also be diluted to 16.4% from the current 19.9%. China CITIC Bank, formerly known as Citic Industrial Bank, was formed in 1987 by China International Trust & Investment Corp. The lender's focus on services for individuals has helped net income grow 20% annually over the past three years.