Yesterday (Monday Oct 22 Beijing time) I was wondering why the Citic Securities 600030 stock did not trade in Shanghai: the official reason is CS expected to announce some news. I thought about the Bear Stern (NYSE: BSC) thing, and my guess was right. Here is the news this morning (Oct 23), in Chinese and in English (Bloomberg).
Citic, Asia’s largest securities firm, will pay $1 billion for the equivalent of 6 percent of New York-based Bear Stearns’s shares, and the U.S. brokerage will invest the same amount in Citic, the companies said in a statement today. They agreed to team up to sell financial products and services in China, and plan a Hong Kong-based joint venture for other Asian markets.
Although I don’t expect this move will bring significant impact to CS’s top and bottom line, and I can’t predict the outcome, nonetheless CS took baby step outside China, which is a good thing.