Leading brokerage Citic Securities said it plans to replenish the capital of its Hong Kong arm, whose main asset is global brokerage CLSA, with up to $1.5 billion to expand its international operations, reported Caixin.
The company’s board agreed to Citic Securities International’s new funding, which will be carried out in steps starting with an initial round of up to $300 million, the parent said in a filing to the Shanghai Stock Exchange.
A source familiar with Citic Securities told Caixin that the parent will provide all funds for the replenishment, which will be used to expand the business of CLSA, an investment bank that is Citic Securities International’s main asset. The new funds would be used to help improve the Hong Kong company’s efficiency and enhance its balance sheet.
Citic Securities is the largest brokerage on the Chinese mainland by total assets, revenue and net profit, according to 2019 data from the Securities Association of China.
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