China CITIC Bank (00998) plans to invest 10 billion yuan to establish a wholly-owned subsidiary CITIC Gold Investment

According to Zhitong Finance App News, China CITIC Bank (00998) issued an announcement. In order to keep up with national policy guidelines, write “technology finance” articles, and continue to increase support for science and innovation enterprises and the private economy, the Bank plans to invest 10 billion yuan of its own capital to establish a wholly-owned subsidiary CNBC Financial Asset Investment Co., Ltd. (The provisional name will be subject to the name approved by the relevant regulatory authorities and market supervision and administration departments).

The registered capital of CNCBI is to be RMB 10 billion. The Bank invests with its own capital, and the shareholding ratio is 100%. Subsequently, it is proposed to select and hire directors and senior managers in accordance with regulations, establish a complete corporate governance structure in accordance with the “Company Law of the People's Republic of China”, “Corporate Governance Guidelines for Banks and Insurance Institutions” and relevant regulations on corporate governance rules, and carry out market-based debt-for-equity swaps, pilot business and other supporting services.

This investment is a key step for the Bank to respond positively to the national call and strongly support the development of “technology finance”. The Bank will do a good job in “five major articles” on finance based on the strategy of serving the country. The source of funding for this investment is the Bank's own capital. The Bank's capital can support the establishment of CNBC Gold Investment, which has little impact on the Bank's various liquidity indicators.