Citic Securities and Orient Exchange negotiations postponed

Citic Securities internationalization process is moving forward, Citic Securities Co., Ltd. (CITIC Securities, 600030) and the Oriental Bank strategic Cooperation in the initial framework of the formal launch yesterday.　　Citic Securities said last night that the two sides will, through the holding company, integrate CLSA, Shengfu Securities, CITIC Securities International Limited's institutional securities brokerage and equity capital markets and corporate financing operations in Hong Kong, as well as the eastern bank's equity capital markets and mergers and acquisitions in Asia, in the form of a reciprocal equity stake in a holding company. The announcement of CITIC Securities last night announced that the two sides signed a memorandum of understanding and exclusive negotiations after Citic Securities Board agreed to the strategic cooperation between the company and the Orient Bank, although the final negotiations will be completed half a year later than planned.　　is deferred until June 30, 2011 (originally scheduled for completion before December 31 this year). The strategic partnership between CITIC Securities and Orient Exchange was disclosed May 3 this year, Citic Securities announced at the time of the two sides of the cooperation program includes: the scope of cooperation with the Eastern bank and its subordinate Shengfu Securities, agricultural Credit Bank Securities (United States) companies and CLSA and other companies, cooperation, including but not limited to business cooperation, customer resource sharing　　, the formation of joint ventures, the establishment of strategic alliances, the two sides jointly build a global brokerage and derivative products business platform, the company is the only partner, through the integration of the company, the East Bank Asia Pacific subsidiary and CLSA related subsidiaries and business, to build the Asia-Pacific region's leading investment banking, international agencies sales, research and investment banking business. Data show that the French Agricultural Bank Group is one of the world's largest financial group, Oriental Bank is the French Agricultural Bank group's Corporate and investment banking branch.　　At present, Oriental Factoring Bank has about 13,000 employees, in 50 countries, the main business includes four major aspects, namely, business and investment banking, stock brokerage and derivative transactions, fixed income market and structured finance.　　Citic Securities announced yesterday that, in accordance with the Board resolution, the company actively with the eastern bank and the relevant parties to negotiate, to promote the cooperation plan. Citic Securities, which is to hold a counterpart, said yesterday that Citic Securities had initially set up a trading structure with Orient Exchange: The two sides held a reciprocal stake in a holding company, integrating CLSA, Shengfu securities,　　CITIC Securities International Limited is an institutional brokerage and equity capital market and corporate finance business in Hong Kong, as well as the Asian equity capital markets and mergers and acquisitions business of Oriental Factoring Bank.　　In addition, the two sides are further discussing other regional and business cooperation frameworks. Last night's announcement did not disclose specific integration content. However, the national securities in November this year issued a research report on Citic Securities said, Citic Securities may set up a joint venture with the newly established holding company of Orient Bank in 50% to 50% per cent, Citic Securities international into the joint venture, and Orient Bank to inject CLSA into the joint venture. and analysis said that the cooperation will enhance theThe competitiveness of securities investment in overseas markets.　　Citic Securities has long been purchasing a 2/3 per cent stake in fortune CLSA, as part of a partnership between Citic Securities and the Oriental Bank.　　CLSA, a subsidiary of the French Agricultural Credit Bank Group, holds a 33.33% per cent stake in CLSA, which holds a 66.67% per cent stake in the wealth CLSA, an analyst who says Citic Securities is in possession of the latter. Cooperation remains uncertain "the establishment of this trading structure indicates that CITIC Securities has taken an important step in internationalization.　　One industry insider said yesterday. In fact, Citic Securities began its overseas expansion plan as early as three years ago. Citic Securities had planned to co-operate with Bear Stearns in 2007, but Bear Stearns fell into bankruptcy in March 2008, and cooperation between the two sides was finally stranded.　　CITIC Securities also established an investment banking business with Evercorepartnersinc, an independent investment bank, in March 2009, which mainly deals with the operations of Chinese and foreign companies.　　Hongjin, an analyst with China Merchants Securities, said Citic Securities had never stopped the pace of overseas expansion, and Citic Securities had been actively seeking overseas partners to gain the platform and experience of international expansion after the company's joint programme with Bear Stearns failed. Citic Securities said last night that there is still an unknown element of cooperation, the relevant cooperation issues need to comply with the relevant national policy provisions, and the relevant regulatory authorities and the relevant departments for examination and approval after the execution, the process and the results of the examination and approval of a certain degree of uncertainty; partner companies for overseas companies,　　The relevant provisions of this cooperation will also be subject to the relevant regulatory policies, laws and regulations of the host country, and can be implemented without objection by local regulatory authorities, and there is some uncertainty about the implementation process and results of the relevant provisions.　　In addition, the relevant terms of cooperation will be discussed further after the two sides, the board of Directors, shareholders meeting and the relevant departments or third party approval, therefore, the content of cooperation there is a certain degree of uncertainty. As of the weekend (17th), Citic Securities closed at 13.16 yuan/share, down 0.53%.