China International Capital Corp Chairman Ding Xuedong, attends a meeting with a group of International CEO's during a Strategic Attractiveness Council at the Elysee Palace in Paris, March 22, 2016. Picture taken March 22, 2016. REUTERS/Gonzalo Fuentes
As China’s first Sino-foreign investment bank, $11 billion CICC for years has profited by brokering deals for state behemoths thirsty for overseas money. It began losing market share with the rise of mom-and-pop investors, who prefer trading smaller private companies. Partner Morgan Stanley exited in 2010, and five years later CICC raised over $800 million in a Hong Kong stock sale before taking over China Investment Securities in a $2.5 billion deal that brought more retail customers.
CICC’s capital hike has not exactly been a good advertisement for its business so far, however. In July, it said it would triple the offering size because the original amount was insufficient. And yet, without explanation, it is now sticking with the $1 billion target. One possible explanation is that Beijing intervened because of CICC’s role in the recent Luckin Coffee scandal.
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