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China International Capital Corporation

From Alfawiki
China International Capital Corporation Limited
Company typePublic (joint stock company with limited liability)
IndustryFinancial services, Investment management
FoundedJuly 31, 1995; 31 years ago (1995-07-31) in Beijing, China
Headquarters
Beijing
,
China
Area served
Worldwide
ProductsInvestment banking, Securities trading, Asset management
OwnerCentral Huijin Investment Ltd. (40.17%), HKSCC Nominees Limited (30.74%), Haier Group Financial Holdings Ltd. (8.26%), Alibaba Group Holding Limited (4.49%), Tencent Holdings Limited (4.48%), others

China International Capital Corporation Limited (CICC; 中国国际金融股份有限公司) is a multinational financial services and investment management company partially owned by the Chinese government. Established in 1995, CICC provides a range of services including investment banking, securities trading, and asset management to clients worldwide, encompassing corporations, institutions, and individual investors.

With its main office situated in Beijing, CICC maintains an extensive network of more than 200 branches across mainland China. Additionally, it has established international offices in major financial centers such as Hong Kong, Singapore, New York City, London, San Francisco, Frankfurt, and Tokyo.

History

Founded on July 31, 1995, CICC was the first Sino-foreign joint venture investment bank, created through collaboration among China Construction Bank, Morgan Stanley, China National Investment and Guaranty Co Ltd, GIC, and the Mingly Corporation. Initially, ownership was divided with China Construction Bank holding 42.5% and Morgan Stanley owning 35%.

In 1997, CICC established its inaugural overseas subsidiary in Hong Kong, becoming the first Chinese investment bank to undertake securities underwriting in that market. That same year, it successfully managed the IPO of China Mobile on the Hong Kong Stock Exchange—then the largest initial public offering in Asia—signifying a pivotal moment for Chinese state-owned enterprises listing abroad.

By 2004, China Construction Bank transferred its shares to China Jianyin Investment, which subsequently handed them over to China Central Huijin, a subsidiary under the China Investment Corporation. Morgan Stanley exited its holdings in 2010, selling its stake to investors including TPG, KKR, GIC, and Great Eastern. CICC also led innovation in China’s fixed income sector by founding its FICC division.

In 2015, CICC transitioned into a joint stock company with limited liability. Major shareholders at that time included Huijin, GIC, and TPG. The firm completed its own initial public offering on the Hong Kong Stock Exchange in November of that year.

The following year, in 2016, CICC acquired China Investment Securities from Central Huijin through an all-share transaction. In 2017, it expanded its asset management presence by obtaining a controlling interest in KraneShares, a US-based ETF provider specializing in Chinese-listed equities. Also in 2017, Tencent secured a 5% ownership stake in CICC.

Reflecting alignment with President Xi Jinping’s common prosperity initiative, CICC initiated cost reduction strategies beginning in 2023, including cutting back on travel benefits for senior bankers. By May 2024, a revamped performance evaluation system was introduced that led to demotions and salary reductions for employees with lower performance ratings; base pay for bankers on the mainland was reduced by as much as 25%. By mid-2024, approximately one-third of CICC’s workforce were members of the Chinese Communist Party as the company increasingly aligned its governance with CCP directives.

Shareholding Structure

As of October 31, 2021, the ownership distribution was as follows:

Distinguished Alumni

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Additional Resources

External Resources

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