Citic Securities' global ambitions have been given a boost with plans to buy stakes in CLSA and Cheuvreux, Credit Agricole's brokerage units.
The Beijing-based brokerage, the mainland's biggest by market value, said it would pay a combined US$374 million for a 19.9 per cent stake in each of the brokerages.
Following the deals, Citic and Credit Agricole, France's third-largest bank, would seek to create a global brokerage platform by integrating the CLSA and Cheuvreux businesses, Citic said.
Cheuvreux has a network of brokerages across Europe while CLSA is an Asian-focused securities firm. The investments are subject to regulatory approvals. Following the stake purchases, the partnership between Citic and Credit Agricole would become 'substantive', the Chinese brokerage said.
Citic is leading plans by Chinese brokerages to tap overseas securities markets, banking on the country's increasing financial strength.
It also has announced plans to launch a Hong Kong share offering to raise up to US$3 billion, part of efforts to hone its image as a global competitor in the securities sector.
'The deals reflect Citic taking a step-by-step approach in internationalising its businesses,' Huatai Securities analyst Zhou Lin said. 'Overall, Chinese brokerages are not prepared to participate globally but acquisitions should help them quicken the pace of going abroad.'
