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CITIC Lays Ground for Crucial Reform

CITIC Lays Ground for Crucial Reform

CITIC Industrial Bank, one of China's leading joint-stock lenders, is stepping up its financial restructuring as part of its preparations to receive a cash injection of 9 billion yuan (US$1.1 billion) from its parent company in mid-December, according to China Daily.

The cash from CITIC Group is expected to raise the lender's capital-adequacy ratio to 8 percent from its current 5.9 percent.

"The ongoing financial restructuring paves the way for CITIC's transformation into a retail bank, and its plan to get listed next year, Chen Xiaoxian, president of China CITIC Bank, said.

In a symbolic move, the bank changed its name and logo to "China CITIC Bank"on November 25, leaving "industrial"out, as the word may give a misleading impression that the bank only focuses on some industries.

The bank is strengthening its personal banking business by focusing more on its credit card business and VIP wealth management.

Even as it changes its business structure, the bank is also in discussions with foreign strategic investors.

As for criteria needed to select the most correct strategic investor, Chen disclosed that CITIC's decision will be based on the plan offered by a foreign investor. "It would be the one most favourable to CITIC Bank,"Chen said.