China’s CICC: Capital Insufficient For Overseas Acquisitions
TIANJIN, China (Dow Jones)–China International Capital Corp. Chairman Li Jiange
said Sunday that as an investment bank CICC doesn’t have sufficient capital to
make overseas acquisitions.
Li, who took up his post in July, made the comment on the sidelines of the World
Economic Forum in response to a reporter’s question about whether CICC is
planning any overseas acquisitions.
The U.S. turmoil has aroused speculation that some Chinese companies may be
interested in buying into ailing overseas financial institutions.
CICC is a major Chinese investment bank. It has underwritten many Chinese
companies’ domestic and overseas share offerings and has advised on a lot of
acquisitions.
It has registered capital of US$125 million, according its Web site.
Morgan Stanley helped set up CICC in 1995 as China’s first Sino-foreign joint
venture with China Construction Bank Corp. But the U.S. firm reduced its role to
that of a passive investor after it struggled to exert its influence at CICC.
In March, Morgan Stanley halted a plan to sell its 34.3% stake in CICC because
the offers it had received were too low.
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