CITIC Bank announced that its wholly owned subsidiary, CITIC Financial Asset Investment (CITIC AIC), has obtained operational approval from the National Financial Regulatory Administration on Nov 23. It is the second joint-stock commercial bank-sponsored AIC in China to receive such approval, following Industrial Bank's "Xingyin Investment".

CITIC AIC has designated the Yuehai Finance Center, Zhujiang New Town, Tianhe district as the site for its national headquarters, with a registered capital of 10 billion yuan ($1.37 billion). As a key part of CITIC Bank's comprehensive financial services, it will focus on strategic emerging industries and enterprises that use special and sophisticated technologies to produce novel and unique products, conduct market-oriented debt-to-equity swaps and equity investments, support sci-tech and private enterprises, and explore the value of emerging and future industries.

CITIC has set up the CITIC Equity Investment Alliance with professional institutions within the group. The alliance manages over 320 billion yuan in funds, has invested in and incubated over 1,100 enterprises, and has supported the growth of many industry leaders. CITIC AIC's establishment will further strengthen the CITIC system's patient capital function.

CITIC Bank has distinct advantages in corporate finance, including a customer base, credit and risk control, and is the first joint-stock bank to systematically engage in sci-tech finance. CITIC AIC's approval marks a breakthrough for Tianhe in attracting national headquarters of licensed financial institutions and reflects CITIC's high recognition of the Guangdong-Hong Kong-Macao Greater Bay Area's sci-tech vitality and industrial foundation.

CITIC AIC is set to locate its national headquarters at the Yuehai Finance Center in Tianhe district. [Photo/VCG]