Retail News CRM

Tag: citic

  • China CITIC Bank and Hang Seng Bank Champion Innovative Reforms in Offshore RMB Repo Market

    China CITIC Bank and Hang Seng Bank Champion Innovative Reforms in Offshore RMB Repo Market

    China CITIC Bank International (CNCBI) and Hang Seng Bank are taking bold steps to enhance the offshore RMB bond market, signaling a significant evolution in financial operations in Asia. The two financial institutions announced their support for the new offshore RMB bond repurchase business, and in an impressive feat, CNCBI reported the successful completion of its first batch of transactions utilizing bonds held under the Northbound Bond Connect program as collateral.

    Boosting Capital Flexibility for Investors

    According to Chao Li, deputy head of treasury & markets group at CNCBI, these enhanced arrangements open new avenues for offshore investors by lowering financing costs and increasing capital flexibility. This not only aims to attract more international investors to mainland China’s bond market but also works toward furthering the internationalization of the RMB and onshore bonds. It’s no small feat, considering the complexities involved in integrating such financial innovations.

    Enhancing Market Access and Liquidity

    Meanwhile, Liz Chow, head of markets and securities service at Hang Seng Bank, emphasized that these enhancements are pivotal for improving market access. They cater to the increasing demand for diversified financial solutions while promoting better liquidity management and efficient collateral utilization. Hang Seng Bank has also broadened its repo business, now extending services to both banks and non-banking financial institutions (NBFIs), and has recorded a transaction volume of RMB500 million, showcasing its commitment to diversifying market offerings.

    This palpable momentum in the offshore RMB market could mean a transformative shift for investment practices in the region—after all, when investments start to feel like a game of chess, every move counts!

    Questions & Answers

    What recent development has occurred in the offshore RMB bond market?
    China CITIC Bank International and Hang Seng Bank have launched enhancements to the offshore RMB bond repurchase business, with CNCBI successfully completing the first transactions using bonds as collateral.

    How do these enhancements benefit offshore investors?
    The new arrangements provide offshore investors with increased capital flexibility and lower financing costs, making it easier for them to engage in the Chinese bond market.

    What are some of the services offered by Hang Seng Bank in relation to this market?
    Hang Seng Bank has expanded its repo business to include banks and non-banking financial institutions, achieving significant transaction volumes that enhance market access and liquidity management.

  • CITIC Bank International Demonstrates Resilience with Strong Capital and Liquidity, Analysts Confirm

    CITIC Bank International Demonstrates Resilience with Strong Capital and Liquidity, Analysts Confirm

    China CITIC Bank International is showcasing a robust ability to weather the ongoing challenges in Hong Kong’s sluggish property market, as reported by Moody’s. The bank is expected to uphold its solid asset quality, strong capital base, and excellent liquidity throughout the next 12 to 18 months.

    Property Development Exposure

    At the close of 2024, the bank’s exposure to property development and investment in Hong Kong represented 13% of its total gross loans. Fortunately, these loans are considered low-risk due to the strong profiles of the borrowers and conservative loan-to-value ratios. This strategic positioning could provide breathability in unavoidable market fluctuations.

    Improved Loan Metrics

    Moody’s highlights that the bank has actively reduced its exposure to mainland Chinese developers, which has been bolstered by enhanced provisioning. The impaired loan ratio also showed improvement, dropping from 2.3% in 2023 to 2.1% in 2024.

    Solid Capitalization and Liquidity

    Capitalization remains robust, backed by moderate internal capital generation alongside controlled growth in risk-weighted assets. With a liquidity coverage ratio of 200% in Q1 2025—well above the regulatory minimum of 100%—the bank’s liquidity position appears to be nothing short of impressive, like an Olympic gymnast.

    Deposit Growth and Profitability Outlook

    Total deposits for the bank surged by 9% in 2024, with current and savings account deposits climbing to 27% of total deposits, up from 25% the previous year. However, profitability in 2025 may face headwinds as the narrowing net interest margin (NIM)—which slipped slightly to 1.79% in 2024—will likely exert pressure on earnings. Nevertheless, the bank expects some relief from increased fee and commission income.

    Financial Resilience and Future Prospects

    While CITIC Bank International leans moderately on wholesale funding, its overall liquidity framework indicates resiliency. Steady deposit growth complemented by high-quality liquid assets has fortified the bank’s financial health. The bank continues to rely significantly on its parent company, CITIC Bank, and Moody’s foresees continued indirect support from the Chinese government, albeit not universally across all liability classes.

    An analysis of Loss Given Failure reveals a low to moderate risk across most liabilities. However, the recent redemption of US$500 million in Tier 2 subordinated debt has heightened the potential severity of losses for some instruments.

    Questions & Answers

    What percentage of gross loans does the bank have exposed to property development in Hong Kong?
    At the end of 2024, China CITIC Bank International’s exposure to property development and investment in Hong Kong accounted for 13% of its gross loans.

    How did the bank’s impaired loan ratio change in 2024?
    The impaired loan ratio improved to 2.1% in 2024, a decrease from the 2.3% reported in the previous year.

    What is the outlook for the bank’s profitability in 2025?
    Profitability is anticipated to be pressured in 2025 due to a narrowing net interest margin, although increased fee and commission income may provide some relief.

  • CITIC Offloads McDonald’s Stake

    CITIC Offloads McDonald’s Stake

    CITIC has plans to sell a 22 percent stake in McDonald’s Chinese mainland and Hong Kong business to its parent group’s private equity arm.

    The main listed arm of the Chinese state-owned CITIC Group, CITIC Ltd., will aim to raise at least 2.17 billion yuan, according to a report citing a Beijing bourse filing.

    The report also underlined CITIC Capital, the group’s alternative investment arm, as the likely buyer of the stake, adding to its $26 billion in assets already under management. Finalization of the deal is earmarked for early February, one of the sources added.

    McDonald’s said that strategy and daily operations at its mainland and Hong Kong business would be unaffected by the deal. CITIC also provided assurances, noting that the deal was a purely «commercial decision» and that it would continue cooperation with McDonald’s business in China.

    CITIC will be selling the 22 percent stake through Fast Food Holdings Ltd., a holding firm set up with CITIC Capital to hold the combined 52 percent stake of McDonald’s mainland and Hong Kong business. Following the deal, CITIC Ltd. will still hold 10 percent of the regional McDonald’s business.

    Lees ook:

    Lees ook:

  • CITIC Telecom CPC appoints new CEO

    CITIC Telecom CPC appoints new CEO

    CITIC Telecom International CPC Limited (CITIC Telecom CPC), a wholly-owned subsidiary of CITIC Telecom International Holdings Limited, announced that Brook Wong, vice president of CITIC Telecom has been appointed to the additional role of chief executive officer of CITIC Telecom CPC effective 1st February, 2022, succeeding Esmond Li who has decided to retire and step down from CEO of CITIC Telecom CPC after over 20 years of service in the Group.

    “Wong has long been a visionary in telecommunications, applying his tremendous insight, depth of experience, and passion for technology to the cause of creating the innovative and intelligent future,” said Frank Cai, vice chairman of CITIC Telecom CPC. “We are delighted to welcome Wong to CITIC Telecom CPC, and I’m confident that he will lead the team to continue pursuing our motto ‘Innovation Never Stops’ and to win in this fast-changing, dynamic industry. I believe that all of us will benefit from his leadership and expertise.”Wong is the vice president of CITIC Telecom, overseeing China market since 2008. He has extensive leadership experience working with various telecommunications companies. An expert in developing and executing strategies for the Greater China market. His ability to see the big picture, from crucial market development to macro strategic perspectives, will be invaluable to CITIC Telecom CPC’s customers.

    “I am honored and truly proud to be appointed to lead CITIC Telecom CPC. Under all the former managements’ leadership and accomplishments, together with its innovation, technology, and talents, it lays a solid foundation for a leading DICT service partner around the globe. We are committed to delivering the most innovative and intelligent solutions to propel the ICT industry forward,” said Wong. “Over the 14 years I have worked at CITIC Telecom, I have seen the many ways in which our people, product, and service create a rapidly growing and innovative company. I look forward to working closely with the management and the team, to continue promoting our company culture of ‘unity, collaboration, tolerance and caring’, to lead and accelerate CITIC Telecom CPC to be ‘best-in-class global-local intelligent DICT service partner”, to foster customer-oriented corporate culture, create a win-win situation with our partners, and strive for new heights.”

    Lees ook:

  • Citi Boosts Wealth Ambitions With Family Office Hire

    Citi Boosts Wealth Ambitions With Family Office Hire

    The wealth planning specialist catering to ultra high net-worth individuals began her career 16 years ago as a wealth management associate at Citi.

    Faye Ong, previously head wealth planning for South Asia at Union Bancaire Privee, has rejoined the bank as head of the family office advisory, private capital group, according to a LinkedIn post on Wednesday.

    Citi has been investing in growing its offerings for family offices, which have proliferated in Singapore in recent years, that reported the news, noted.

    A bank spokesperson confirmed the hire.

    Citi has placed its bets on four wealth hubs, which includes Singapore, as it consolidates its operations globally.

    Citi has previously stated its intentions to double its wealth management market share in Singapore from the current 5 percent, and triple the number of clients by 2025. To achieve this, it is looking to hire over 330 relationship managers.

    Lees ook:

    Lees ook:

  • Citi Registers Stellar Growth in Asia

    Citi Registers Stellar Growth in Asia

    Citigroup CEO Jane Fraser’s first-quarter debut featured strong earnings worldwide and in Asia where the American lender is eyeing growth opportunities, particularly from private wealth in the region.

    Citi’s consumer banking unit in Asia saw $5.2 billion in net new money in the first quarter of 2021 – a 13 percent year-on-year increase – according to a memo seen.

    Investment sales, investment revenue and invested assets all saw decent growth at 48 percent, 22 percent and 29 percent, respectively.

    Citi’s private banking arm delivered its best quarter ever with a 2 percent increase, driven in part by growth in managed investments.

    Citi also posted strong growth from its investment banking business in Asia which saw an 84 percent increase in revenues from continued momentum in equity capital markets.

    Looking ahead, we have excellent momentum, a crisp strategy and tremendous opportunity across our region, said Citi’s APAC chief executive Peter Babej in the memo. The coming months and years will be defining for Citi.

    Overall, the bank posted $4.1 billion of revenue and $1.3 billion of net income in the region which contributed to 21 percent of global revenues, according to its latest published results.

  • CITIC Launches Robo-Advisor in Hong Kong

    CITIC Launches Robo-Advisor in Hong Kong

    China CITI Bank International launches its robo-advisory offering in Hong Kong which was co-developed with fintech firm Quantifeed.

    The new goals-based advisory offering, «Robo 360» is a goal-based advisory service made available through CITIC’s mobile banking app, «inMotion». Investors will be able to access 8-20 portfolios with a minimum investment amount as low as $100 and fees of just 1 percent. The portfolios are constructed with up to eight funds each by leveraging smart analytics and quantitative research capabilities.

    The launch makes CITIC the first bank in Hong Kong to offer a goals-based robo-investment advisory solution.

    We believe this will revolutionize wealth management in Hong Kong by ensuring that professionally managed investment products, previously only available to a limited wealth segment, are now available to retail customers, said Alex Ypsilanti, CEO, and co-founder of Quantifeed.

    Quantifeed has successfully developed scalable and highly customizable digital wealth and robo-advisory solutions for banks, brokers, insurers and wealth planners across Asia.

    These include DBS’s ‘digiPortfolio’ platform in Singapore, Cathay United Bank’s ‘CathayRobo’ service in Taiwan and Everbright Sun Hung Kai’s ‘EBSHK Direct AI-Portfolio Investing’ system in Hong Kong. The firm has a strong footprint in the region, with offices in Hong Kong, Singapore, and Sydney, and has recently expanded its services into Japan.

  • CITIC Telecom posts record $109.5m profit for 2016

    CITIC Telecom posts record $109.5m profit for 2016

    Hong Kong-based CITIC Telecom International has reported a record high operating profit of HK$850.1 million ($109.5 million) for 2016, up 6% from the prior year.

    During the year, CITIC Telecom launched its new City Link roaming services supporting data sharing in mainland China, Hong Kong and Macau, based on a network of more than four million Wi-Fi hotpots in the three markets.

    This launched helped the operator capture a 57% share of Macau’s 4G market, and increase its mobile broadband users by 17%.

    CITIC Telecom also achieved 100% coverage in Macau with its optical network, and completed the acquisition of 340,000 square feet for CITIC Telecom Tower, which once complete will become one of the largest data centers in Hong Kong.

    Internationally, the company commenced the process of acquiring Linx Telecommunications, which serves 14 countries in Europe and Asia. This deal was completed last month.

    The company also recently completed the acquisition of Singapore-based cloud, technology and managed services provider Acclivis Technologies and Solutions, and achieved growth with its data flow trading platform DataMall through a collaboration with China Mobile.

  • McDonald’s China and Hong Kong deal formally announced

    McDonald’s China and Hong Kong deal formally announced

    McDonald’s has confirmed the sale of its China and Hong Kong operations to an investment consortium for US$2.08 billion (HK$16.14 billion).

    Under the deal, the purchasers, Citic Limited, Citic Capital and The Carlyle Group, will open 1500 new outlets.

    Phyllis Cheung, CEO of McDonald’s China, says the Beijing-based Citic companies will together hold a majority 52 per cent stake in the spun-off business and US-based Carlyle and McDonald’s will hold 28 per cent and 20 per cent, respectively. The consortium will run the business for 20 years.

    McDonald’s says it will now re-franchise all its 2600+ stores in Mainland China and Hong Kong to improve sales performances, part of a global effort to cut costs.

    Cheung told China Daily the new company will use its Citic’s strategic relationship with SF Express and Tencent Group Holdings (the owner of WeChat) to facilitate delivery, enhance restaurant convenience and boost its “retail digital leadership and menu innovation”.

    “China and Hong Kong represent an enormous growth opportunity for McDonald’s,” said McDonald’s CEO Steve Easterbrook in a statement confirming the deal, which has been an open secret for some weeks.

    “This new partnership will combine one of the world’s most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success,” he said.

    The deal will be finalised in mid-2017.

    Lees ook:

  • CITIC Telecom to acquire Acclivis

    CITIC Telecom to acquire Acclivis

    Hong Kong’s CITIC Telecom International has expanded its presence in Southeast Asia with the acquisition of a 100% stake in cloud infrastructure services provider Acclivis.

    Acclivis mainly operates cloud facilities in the markets of Singapore, Indonesia, Malaysia and Thailand. The company also owns the ISP Pacific Internet in Singapore and Thailand.

    CITIC Telecom said the acquisition will transform the company into one of the few trans-regional one-stop ICT services providers in Southeast Asia, and will create synergies with the company’s subsidiaries including CITIC Telecom CPC.

    “Acclivis is a technology company that has strong technological capabilities and unique advantages. It operates internet service via Pacific Internet in the region and its businesses and the services we offer to our corporate customers have apparent strategic synergies,” CITIC Teleom CEO Dr Lin Zhenhui said.

    “The acquisition will enable us to expand our services to internet service, cloud computing and management services, support our transformation geared towards the mobile and internet arenas and expansion of the Southeast Asia market, giving us another rapid growth driver.”

    The deal still requires the approval of Acclivis parent DeClout, but pending this is expected to be completed by the end of the year.

    CITIC’s current development strategy is focused on “taking roots in the Mainland market while accelerating expansion and geographic coverage in the international market with Hong Kong and Macau serving as bases and connections.”

    Lees ook:

    Lees ook:

  • Itochu, CP Group team up with Chinese companies to set up e-commerce venture in Shanghai FTZ

    Itochu, CP Group team up with Chinese companies to set up e-commerce venture in Shanghai FTZ

    Five companies from three nations are banding together to sell imported popular household products like diapers and milk powder in China.

    The partners are Itochu, Japan’s third-largest trading house; Charoen Pokphand Group, Thailand’s biggest conglomerate; and Chinese companies CITIC, China Mobile and Shanghai Information Investment Inc.

    An agreement forming the venture, which will operate through a cross-border e-commerce website out of the Shanghai Free Trade Zone, was signed yesterday.

    The venture, which is named Face to Face Co., aims to tap a growing market in China for premium foreign products. Until now, most consumers accessed such products mainly through gray market channels, expensive offshore orders, overseas trips or limited online retailers in China.

    The new system will end long waiting times for deliveries, lower prices by up to 30 percent and ensure that products meet quality standards.

    The five partners are investing US$500 million, and the company will benefit from preferential policies offered by the Free Trade Zone.

    “We predict the scale of cross-border e-commerce in China will jump from nearly 76.7 billion yuan (US$12.4 billion) in 2013 to about 1 trillion yuan by 2018, Itochu said in a statement yesterday. “We see huge demand for premium products in the country.”

    The new company plans to buy an e-platform to run its operations. It will take over online shopping mall Kuajingtong, which was formerly run by state-owned Shanghai Orient Electronic Payment Co. The partnership will take advantage of China Mobile’s vast user base in promoting online orders for goods.

    Japan’s Nikkei Newspaper reported that the new company plans to accrue sales of US$666.7 billion by 2019 and plans to list in China in 2020. The report could not be immediately verified.

    Itochu said the platform will begin operation later this year, offering nearly 100,000 Japanese-made items, including household appliances, food, diapers milk powder and possibly clothing. Charoen Pokphand said it plans to sell Thai food products on the site.

    The Free Trade Zone, launched in 2013, is China’s pilot project for freer trade between the mainland and overseas. Flexible regulations will allow access for both Chinese and overseas companies to import and sell foreign goods domestically.

    Lees ook:

    Lees ook: