CITIC Securities 400 million USD increase in Xin Securities International

The increase is mainly used to enhance CITIC Securities international business capabilities, including: investment in offshore funds, the development of long-term equity investment, improve the supporting construction in the backstage. Citic Securities announced today that its board of directors agreed to add $400 million to its subsidiary Citic Securities International Limited (hereinafter referred to as Citic Securities international) and to provide guarantees or corresponding arrangements for CITIC Securities International (or its wholly owned subsidiary) for Commercial bank loans of not more than USD 235 million (including 235 million US dollars).　　Market participants pointed out that the increase in the capital will further expand CITIC Securities overseas business chips. According to the announcement issued by Citic Securities, the increase is mainly used to enhance the business capability of CITIC Securities International Limited, including: investing in offshore funds, developing long-term equity investment, expanding fixed income, stock self-management and strategic investment, wealth management business, securities financing business, expanding institutional sales and retail networks　　and improve the supporting construction in the backstage. The biggest change brought about by the increase in capital and bank loans is the surge in international assets of CITIC Securities. In yesterday's USD/HK $1:7.7722 ratio, CITIC Securities International's net assets will increase from 4.234 billion Hong Kong dollars to 7.342 billion Hong Kong dollars at the end of last year to an increase of 73.43%. At the same time, CITIC Securities international assets scale will leap in Hong Kong, the first of the Chinese brokerage. Data show that as of December 31, 2009, CITIC Securities International total assets of HK $4.724 billion (excluding customer assets), liabilities of 490 million Hong Kong dollars (of which, the total amount of loans 100 million Hong Kong dollars, the total amount of liabilities due within one year is 490 million Hong Kong dollars).　　2009 Operating income of HK $584 million to achieve net profit of HK $206 million. In this regard, Guotai Securities analyst Static that the rapid increase in capital, Citic Securities international expansion of its full licensing business benefits self-evident, especially in the business of the comprehensive upgrade will be more obvious.　　Other market participants believe that the increase in real terms Citic Securities through its CITIC Securities international and international large-scale financial institutions cooperation model will be further confirmed, but also for this cooperation increased the chips, Hong Kong subsidiary will become its parent company overseas business to undertake platform. It is worth mentioning that the increase in capital mentioned in the backstage construction is in Hong Kong, the current weak link.　　CITIC Securities International CEO Nicho that the company to increase the number of back-Office system construction, is fully aware of the difference between the domestic and foreign market development model to do the deployment. It is reported that Citic Securities International is a wholly-owned subsidiary of CITIC Securities set up in Hong Kong, which has a number of subsidiaries, respectively, holding investment banking, stock and futures brokerage, asset management, proprietary investment and other business licences. CITIC Securities International is the platform for CITIC to carry out international business, and is responsible for the internationalization of Citic's overall business development strategy process.