CITIC Securities and Starr International to form JV |
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issue time:2007-03-10 08:12
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Jan. 25, 2007 (China Knowledge) - CITIC Securities Co. said yesterday that it plans to form an equity investment venture with Starr International Co to become the first broker to buy stakes in Chinese mainland firms that are considering launching public offerings. The Beijing-based brokerage and the U.S. firm will each contribute RMB 500 million to set up the joint venture. Starr International is controlled by Maurice Greenberg, the former chairman of American International Group. China’s brokerage industry is currently undergoing consolidation as smaller players are being bought over by bigger companies, and the government may issue regulations that could halve the number of firms by August. Chinese brokerages also tend to earn most of their revenues in commissions trading securities for clients, leaving their operations vulnerable when the stock market experiences a downturn.
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