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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).

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贝尔斯登(BSC.NYSE)和中信证券(105.93,0.00,0.00%)(600030.SH)各自的董事会昨日达成了一致性决议,宣布一项原则上建立全面战略性联盟的协议。这个联盟将共享管理经验和技术以在中国内地发展新的资本市场产品和业务,建立一家排他性的合资公司,联合在亚洲其余地区的两家公司现有业务,和在对方公司里各进行10亿美元的交叉控股。分析师表示看好这项合作,但认为合资公司的成立和资金的流动需要经过中国内地证券监管部门和外汇管理部门的批准。

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.
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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.

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