| CITIC east china and Calyon Financial to form JV |
| Wednesday,March 28,2007 Posted: 06:28 BJT(2228 GMT) CRI |
CITIC East China (Group) Corp., Ltd. and Calyon Financial Hong Kong Ltd. today announced the signing of a joint venture agreement, forming a new futures brokerage entity established under the Closer Economic Partnership Arrangement. If all approvals are obtained as per schedule, the joint venture may become the first futures brokerage in Shanghai and second futures brokerage in China that is jointly owned by a Chinese firm and a Hong Kong brokerage firm. CITIC East China will be the majority shareholder. CITIC Futures is part of China's top State-Owned Enterprise, namely CITIC Group. CITIC Futures currently has memberships on the Shanghai Futures Exchange, Dalian Commodity Exchange and Zhengzhou Commodity Exchange. Calyon Financial Hong Kong is a part of the Calyon Financial Group, which is wholly owned by Calyon Credit Agricole CIB and part of the Credit Agricole Group in France. Calyon Financial is a leading global futures brokerage firm and has access to more than 70 global financial and commodity exchanges. After signing the agreement, the joint venture will seek regulatory approval from the China Securities Regulatory Commission (CSRC) and relevant required regulatory bodies. The overall approval process is anticipated to conclude within three to six months. "We're enthusiastic about the opportunities for the new joint venture," said Mr. CAI, Xiliang, General Manager of the CITIC East China (Group) Corp., Ltd., the majority shareholder of CITIC Futures. "The company will be well- positioned to participate in China's rapidly developing financial and commodity futures industry." "The joint venture will combine the access and experience of CITIC Futures in the Chinese markets with Calyon Financial, a proven leader in global futures brokerage industry," said Mr. LUO, Heng, Chairman of CITIC Futures. "One of the primary reasons we selected Calyon Financial for this partnership is the company's proven system of internal risk control and its IT systems." The China Securities Regulatory Commission has announced plans to open the Chinese futures markets to foreign investors. Currently, fully or majority- owned Chinese futures firms are the only participants on the Chinese markets. The joint venture will seek qualification as a majority-owned Chinese firm. The China Financial Futures Exchange, the country's first financial derivatives exchange, was inaugurated on Sep. 8, 2006, and trading on its first financial product, the Shanghai-Shenzhen 300 (Hu-Shen 300) index, is anticipated in 2007. The new joint venture will seek membership on the exchange. "We have the highest respect for the CITIC Group and for CITIC Futures," said Richard Ferina, Calyon Financial's Chairman and Chief Executive Officer. "We're pleased to have formed this partnership and look forward to working with CITIC Futures to continue developing China's futures markets." "The joint venture will give us the opportunity, at the appropriate time, to provide our institutional clients with entry to a fast-growing and promising market," said Pierre Gay, Managing Director of Calyon Financial Asia. "We're looking forward to working with CITIC Futures in developing this new company through both companies' existing experience as well as Calyon Financial's global network." |
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