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Citic Securities tied up with Bear Stern

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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.

1 thought on “Citic Securities tied up with Bear Stern

  1. (Update: 10pm Nov. 1 CDT, or 11am Nov. 2 Beijing Time) Citic Securities (, resumed trading, after it released the reports from the board meeting regarding Bear Stern tied up. It’s a bit strange they suspended the stock just to release already known news. But nonetheless I liked the 10% bump.

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