Wednesday, 2 April 2014

CITIC GROUP - CHINESE INVESTMENT CONGLOMERATE - "FIRMLY IN THE HANDS OF THE COMMUNIST PARTY"


Citic Group outlines massive restructuring

[source]

Chinese investment conglomerate Citic Group, whose businesses span property, mining, energy, banking and a soccer team, plans a massive restructuring that will allow it to tap more overseas capital for its sprawling empire.

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The restructuring brings Citic Group more in line with other SOEs that have placed the majority of their assets into listed entities. That has made operations and finances more transparent, although strategic and managerial decisions remain firmly in the hands of the Chinese state and ruling Communist Party.

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“Citic is nowhere near a private company or anything like that so this is purely a state company rejuggling its assets,” said Fraser Howie, co-author of Red Capitalism and other books about state sector restructuring and fundraising in China. “The company you are then buying will just be an absolute behemoth. It may ironically be a good proxy for the state sector.”

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