CITIC Group Overview and History

CITIC Group has its roots in the Chinese government's decision to establish the China International Trust and Investment Corporation in 1979.

CITIC Group was originally formed as a state-owned enterprise to facilitate foreign investment in China.

The company's early years were marked by a focus on infrastructure development, including the construction of major projects such as the Qinghai-Tibet Railway.

CITIC Group's business operations expanded rapidly in the 1980s and 1990s, with the company becoming a major player in a range of industries including finance, real estate, and energy.

A different take: CITIC Capital

CITIC Group was founded as the China International Trust Investment Corporation in 1979.

Rong Yiren, a former businessman and politician, led CITIC in the 1980s and chose to stay in mainland China after his family business was nationalized in the 1950s.

CITIC Group's headquarters was based in Beijing and its Hong Kong office was formally opened in 1985.

The mainland-based CITIC Bank was founded by the group in 1984, and the group acquired a 12.5% stake of Cathay Pacific in 1987.

CITIC also acquired Hong Kong-based Ka Wah Bank in 1986 and absorbed some of the subsidiaries of another state-owned company, 中国康华发展总公司, in 1990.

Explore further: CITIC Securities

CITIC Group was founded in 1979 as the China International Trust Investment Corporation, a Chinese state-owned enterprise.

The group's leadership was under Rong Yiren, a former businessman and politician who had stayed in mainland China after his family business was nationalized in the 1950s.

Rong Yiren's son, Larry Yung, was the former chairman of CITIC Group's listed subsidiary CITIC Pacific, and also led the Hong Kong office and parent company of CITIC Pacific since 1986.

CITIC Group's headquarters was based in Beijing, and the Hong Kong office was formally opened in 1985.

The mainland-based CITIC Bank was founded by the group in 1984, and the group acquired 12.5% stake of the Hong Kong flag carrier Cathay Pacific in 1987.

CITIC Group also acquired Hong Kong–based Ka Wah Bank in 1986, and absorbed some of the subsidiaries of another state-owned company, 中国康华发展总公司, in 1990.

The group's notable acquisitions included a 38.3% stake of another airline Dragonair, and a 20% stake of Hong Kong Telecom.

Discover more: Metro Pacific Investments

In the 2000s, CITIC Group took on a significant role in developing Quilamba in Angola, trading Chinese construction materials and expertise for Angolan natural resources.

CITIC Pacific, a subsidiary of CITIC Group, made a major misstep in 2008 by placing unauthorized bets on the foreign currency market, resulting in a staggering loss of HK$14.7 billion.

This loss led to the resignation of senior executives, including Financial Controller Chau Chi-Yin and Group Finance Director Leslie Chang.

The stock price of CITIC Limited plummeted 55.1 percent upon the resumption of trade following this incident.

In a bold move, CITIC Group sold a 10% stake of CITIC Limited to a joint-venture of Itochu and Charoen Pokphand in 2015 for HK$34.4 billion.

This transaction was the largest investment ever made by a Japanese general trading company, and the largest acquisition in China by a Japanese company.

Suggestion: CITIC Resources