Bottom line: The pending collapse of Citic Securities’ bid for Russell Investments is the direct result of company instability due to corruption allegations and stock market volatility, and highlights the risk of doing business with big state-run companies.
Instability sinks Citic’s bid for Russell
Recent turbulence in China’s corporate world may be set to claim one of its first big victims, with word that a deal to sell fund manager Russell Investments to top Chinese brokerage Citic Securities (HKEx: 6030; Shanghai: 600030) is on the brink of collapse. London Stock Exchange Group has been looking to sell Russell for the last few months, and Citic had emerged as the preferred buyer after several others dropped out.
But Citic Securities has suddenly become a symbol of instability in China, hit by the one-two double whammy of corruption allegations and plunging profits for its core securities brokerage business. The recent corruption allegations against some of its top officials are part of a bigger national crackdown on graft, while the woes at its core brokerage business are the result of volatility in China’s stock markets. Read Full Post…
Bottom line: Haitong’s purchase of a Portuguese investment bank marks the start of a new wave of cross-border tie-ups in the financial services sector, which could fuel a rally in stocks of Chinese brokerages.
Haitong eyes Portuguese investment bank
A new wave of Sino-foreign tie-ups in the financial services arena could be taking shape, with word that China’s Haitong Securities (HKEx: 6837; Shanghai: 600837) is in talks to buy a Portuguese investment bank. I predicted just a couple of weeks ago that such a wave of tie-ups could be coming, following the launch of a historic Hong Kong-Shanghai financial link that will give average western and Chinese investors access to each other’s stock markets for the first time. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 15. To view a full article or story, click on the link next to the headline.
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