Citic holds a lesson for state enterprises
Article Abstract:
The Chinese government has made an important decision in transferring control of its financially unstable state-owned companies (SOEs) to the private sector. China allowed Citic Pacific to buy 24.5% of its parent company, China International Trust and Investment Corp. at a discounted rate of 33%. Citic has a proven track record of earning $850 million in 1996 alone. The government has recognized the problems plaguing SOEs which include inefficient management, excessive leverage, and an inadequate compensation system for senior managers.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Rating moves by Moody's could raise cost of raising funds for Citic group
Article Abstract:
Moody's Investors Service decided to downgrade China International Trust and Investment Corp.'s (Citic) credit rating from A3 to Baa1. The credit rating agency also lowered ratings for Citic's subsidiaries', Citic Pacific and Citic Hong Kong Holdings Ltd. Moody's Investors Service lowered its Citic rating because of the absence of direct guarantees from the Chinese government. Meanwhile, Citic officials stated that the lower credit rating would not likely affect domestic investor confidence.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1995
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Citic's plan to buy stake in China Light paves a path
Article Abstract:
Citic Pacific Ltd. will buy a 20% stake costing about $2.1 bil in China Light & Power Co. The deal is expected to boost China-Hong Kong relations and will benefit both companies. Citic Pacific will be able to increase its per-share earnings and utilize China Light & Power's technical expertise in handling power projects. China Light & Power, on the other hand, will be able to deal with power contracts and enhance its power business in the mainland.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Comment about this article or add new information about this topic:
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