CITIC Group was founded as the China International Trust Investment Corporation, a Chinese state-owned enterprise in 1979. In the 1980s, Chinese government founded many for profit corporations, which CITIC was under the leadership of Rong Yiren, a former businessman and politician at that time, who chose to stay in the Mainland China in the 1950s after his family business was nationalized. His son, Larry Yung, was the former chairman of CITIC Group's listed subsidiary CITIC Pacific. Larry also led the Hong Kong office and parent company of CITIC Pacific since 1986; Larry became a Hong Kong-based businessman since 1978. CITIC Group headquarters was based in Beijing; Hong Kong office was formally opened in 1985. The Mainland-based CITIC Bank was founded by the group in 1984. The group also acquired 12.5% stake of the Hong Kong flag carrier Cathay Pacific in 1987, and became a member of a shareholders' agreement in 2006; the stake was sold to fellow state-owned company Air China in 2009. The group also acquired Hong Kong-based Ka Wah Bank in 1986. In 1990, the group also absorbed some of the subsidiaries of another state-owned company,. Other notable acquisitions included 38.3% stake of another airline Dragonair, 20% stake of Hong Kong Telecom, etc. CITIC also acquired a Hong Kong listed company and renamed to CITIC Pacific in the 1990s. Part of the assets of the group were injected into the listed company as reverse IPO, including the stake of aforementioned Cathay Pacific. A full reverse IPO was took place in 2014.
2000s
Its subsidiary, CITIC Pacific, made unauthorized bets on the foreign currency market in October 2008 and lost HK$14.7 billion. Senior executives such as Financial Controller Chau Chi-Yin and Group Finance Director Leslie Chang resigned. Its stock price plunged 55.1 percent upon the resumption of trade. CITIC Group injected most of their assets to CITIC Limited in 2014. However, CITIC Guoan Group was excluded, which was recapitalized by other private capital. In 2015, CITIC Group sold 10% stake of CITIC Limited to a joint-venture of Itochu and Charoen Pokphand for HK$34.4 billion ; the joint venture also subscribed new convertible preferred shares for HK$45.9 billion. It was reported it was the largest investment ever made by a Japanese general trading company. The transaction is also the largest acquisition in China by a Japanese company, and the largest investment by foreigners in a Chinese state-owned enterprise. In 2016, CITIC Group ranked 156th among the Fortune Global 500, with an annual revenue of $55,938 million.
Group companies
CITIC Limited, a subsidiary of CITIC group in Hong Kong
