China International Trust and Investment Corp (Citic) plans to set up a holding firm in the first half of this year to control its financial units, said a company official. The firm will be incorporated in Beijing and will include Citic Industrial Bank,
Securities and a life insurance joint venture with British insurance firm Prudential. The plan, which has been approved by the State Council, is part of Citic’s drive to reduce its manufacturing interests and become a fully-fledged financial services group covering everything from banking to insurance and securities.
Japanese broker moves into China Japan’s second largest brokerage firm, Daiwa Securities, has agreed an alliance with a Chinese firm, Shanghai International Group. The two firms will advise Japanese companies seeking to sell shares in China and could lead to Daiwa offering brokerages services in China. Shanghai International was set up by the Shanghai municipal government in 2000.
This is the first time a Japanese financial services company has formed an alliance in China, Nihon Keizai Shimbun said. Daiwa hopes to follow the example of US firm Morgan Stanley Dean Witter, whose China International Capital Corp joint venture with China Construction Bank was China’s second largest underwriter last year.