SHANGHAI, China, and CHICAGO, March 26 /CNW/ -- 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 (referred as CEPA).
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
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
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
"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."
About CITIC Futures Brokerage Co. Ltd.
CITIC Futures is one of the oldest futures companies approved by CSRC
with registered capital RMB30.30 million, registered addresses on the 3rd
floor of CITIC Penta-Bull Building at No 1085 Pudong Avenue in Shanghai, and
its shareholder CITIC East China (Holdings) Ltd. and CITIC Shanghai Import and
Export Co. Ltd. Since its establishment in October 1993, CITIC Futures has
consistently adhered to the directive of Mr. WANG, Jun, former chairman of
CITIC Group, to "abide by the law, and regulate transactions." By taking
advantage of the strength and reputation of China CITIC Group, CITIC Futures
insists on sound operation and firm risks control. In addition to a high-
quality team with rich experience in transactions and management, sound
operation (consistent profitability during the past five consecutive years),
steady growth, and commitment to ensure customer's legal interest, CITIC
Futures enjoys a good reputation in China's futures industry.
About Calyon Financial
Calyon Financial (www.calyonfinancial.com) is a leading global brokerage
firm dedicated to providing institutional clients efficient access to all
major markets. The firm has access to over 70 financial and commodity
exchanges. Headquartered in Chicago, Calyon Financial has presence in 16
major global financial centers. Calyon Financial is a wholly owned subsidiary
of Calyon S.A. (www.calyon.com), the corporate banking arm of the Credit
Ms. Ying Yao
CITIC Futures - General Manager's Office
Mr. Barry Neumann
Calyon Financial Corporate Communications
For further information:
For further information: SHANGHAI, Ms. Ying Yao, of CITIC Futures -
General Manager's Office, +86-21-5860-6488, or firstname.lastname@example.org; or CHICAGO,
Mr. Barry Neumann of Calyon Financial Corporate Communications, or
+1-312-441-4564, or email@example.com Web Site: