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Arabian Post
29-04-2025
- Business
- Arabian Post
CICC Strengthens Global Reach with Dubai and Southeast Asia Push
China International Capital Corp. is intensifying efforts to expand its presence beyond mainland China by establishing a new branch in Dubai and deepening its foothold in Southeast Asia, as global demand for cross-border financial services continues to grow. The Beijing-based investment bank, recognised as one of the country's most influential financial institutions, is preparing to open a new branch in the Gulf city to cater to sovereign wealth funds and large conglomerates, according to Wang Hanfeng, deputy president for CICC International. The move is part of a broader strategy to bolster its international business amid shifting global investment flows and intensifying competition among major financial firms. The Dubai expansion marks a significant milestone for CICC's ambitions in the Persian Gulf, a region where sovereign wealth funds manage trillions of dollars in assets and have become increasingly active in overseas investments. The choice of Dubai underscores the emirate's growing importance as a financial hub linking Asia, Europe and Africa. Wang said CICC aims to serve not just the Gulf's sovereign investors, but also major corporations seeking advisory, asset management and capital markets services. Beyond the Gulf, CICC is extending its reach into Southeast Asia. The firm opened a representative office in Vietnam last year and has operated a unit in Singapore since 2008. As Southeast Asia continues to attract capital with its rapid economic growth and favourable demographics, financial institutions are vying for a stronger presence in markets such as Indonesia, Malaysia, Thailand, and the Philippines. CICC's strategic focus on these regions aligns with the evolving needs of Chinese enterprises and investors looking to expand their international footprint, as well as with global clients seeking connections to Asian opportunities. CICC's expansion strategy comes as Chinese investment banks increasingly seek growth opportunities abroad to diversify their revenue sources. Domestic markets have become more competitive, with tighter regulatory oversight and shifting economic conditions prompting firms to look outward. Institutions such as CITIC Securities and Haitong Securities have similarly enhanced their overseas activities, yet CICC's methodical approach, rooted in long-term partnerships and a full-service offering, positions it uniquely among its peers. The choice of Dubai for CICC's new branch is driven by multiple factors. The Gulf's sovereign wealth funds, including Abu Dhabi Investment Authority, Qatar Investment Authority and Saudi Arabia's Public Investment Fund, have ramped up their global investment strategies, moving beyond traditional holdings into technology, infrastructure and sustainability sectors. By establishing a presence in Dubai, CICC aims to position itself as a trusted partner capable of bridging opportunities between Asia and the Gulf, offering advisory services on mergers and acquisitions, capital raising, and strategic investments. In Southeast Asia, CICC's expansion is informed by the region's dynamic financial ecosystems and the rise of local capital markets. Vietnam, where CICC set up a representative office, has emerged as a major investment destination, fuelled by manufacturing growth and a young population. Singapore remains a key financial centre, serving as a regional hub for private banking, wealth management, and corporate financing. CICC's operations there allow it to tap a sophisticated client base and act as a gateway to broader ASEAN markets. Wang Hanfeng emphasised that CICC's international strategy focuses not just on expanding its physical presence but also on enhancing its cross-border service capabilities. This involves leveraging the firm's research strengths, investment banking expertise, and asset management platforms to support clients navigating complex global markets. He noted that building trusted local relationships, understanding regulatory frameworks, and offering tailored solutions are crucial elements of CICC's approach. CICC's global ambitions have been steadily unfolding over the past two decades. The firm, which was founded in 1995 with backing from entities such as Morgan Stanley, has transformed from a pioneer in China's domestic capital markets to an internationally recognised investment bank. Its international division, CICC International, based in Hong Kong, has played a critical role in supporting cross-border transactions, including mergers and acquisitions, initial public offerings, and bond issuances. Challenges remain, however, as the global financial environment grows increasingly complex. Geopolitical tensions, evolving regulations, and shifts in monetary policy present risks that international financial firms must navigate carefully. Moreover, competition from Western investment banks and regional players means that CICC must continuously differentiate itself through client service, innovation, and market insight. Despite these challenges, CICC appears poised to make significant strides. The firm's measured but determined expansion into the Gulf and Southeast Asia suggests a commitment to building sustainable and meaningful international operations. It also reflects the broader trend of Chinese financial institutions adapting to a more globalised economy and playing a larger role on the world stage. Dubai's strategic location and pro-business environment make it an ideal choice for CICC's Gulf ambitions. The emirate's free zones, regulatory reforms, and investment-friendly policies have attracted a wide array of global banks, asset managers and investment firms. CICC's entry adds another dimension to the city's growing status as a bridge between emerging and developed markets. Similarly, Southeast Asia's burgeoning middle class, infrastructure demands, and technology-driven growth offer fertile ground for investment banking services. CICC's proactive engagement with these markets positions it to capture opportunities in sectors ranging from renewable energy and digital finance to healthcare and logistics. CICC's expansion drive also highlights the growing integration of Asian and Middle Eastern economies. Trade, investment and financial ties between China, the Gulf states, and Southeast Asian nations are deepening, driven by initiatives such as the Belt and Road Initiative and new regional trade agreements. Financial services play a critical role in facilitating these linkages, and institutions like CICC are well-placed to benefit from these evolving trends. Wang Hanfeng reiterated that CICC will continue to assess new opportunities for international growth, with an eye toward establishing a stronger, diversified global network. The firm's latest moves underscore its belief that global engagement is essential to long-term competitiveness and relevance in the investment banking industry. As CICC prepares to open its Dubai branch and strengthens its Southeast Asian footprint, the firm is charting a course aimed at becoming a truly global financial powerhouse, bridging East and West in an increasingly interconnected world.
Business Times
29-04-2025
- Business
- Business Times
China's CICC eyes Middle East, South-east Asia in global push
[NEW YORK] China International Capital Corporation (CICC), one of the nation's largest brokerages, is seeking to tap the growing demand for cross-border financial services in the Persian Gulf and South-east Asia as the firm pushes its global expansion. Beijing-based CICC is gearing up to open a new branch in Dubai to target sovereign wealth funds and conglomerates in the Gulf region, according to Wang Hanfeng, deputy president for CICC International. It's also exploring more South-east Asian markets, after having opened a representative office in Vietnam last year and a Singapore unit in 2008. 'If we don't connect with the world and just focus our efforts on the domestic market, our role and influence will wane,' Wang said. 'We aim to form a bridge for Chinese firms to go abroad and overseas firms to invest in China.' The company will now also prioritise deploying resources to areas including Latin America, central Asia as well as Japan and South Korea to better support China's Belt and Road Initiative, Wang said. Since the inception of the initiative in 2013, China has managed to extend its global influence through the development programme that mainly funds infrastructure for member countries. Beijing is now actively seeking closer ties with trade partners in regions including South-east Asia as it braces for growing tensions with US President Donald Trump's US administration. The overseas expansion of Chinese brokerages also dovetails with the nation's strategy for its firms to 'go global' and a drive to cultivate two to three top-class Chinese investment banks by 2035. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The push comes amid increasing tension with the US over tariffs and as China's economy has struggled to regain traction. The firm's profit dropped 7.5 per cent in 2024 from a year earlier as brokerage commissions and investment banking revenue slid. Underwriting and sponsoring fees from equity financing dropped almost 37 per cent as initial public offerings and follow-on share sales in China plummeted. CICC aims to participate in the energy transition and infrastructure construction drive in the Gulf region by providing structured financing and services, according to Wang. It will cater to increasing demand from both Chinese firms and their counterparts in that region for cross-border investment, share offerings, as well as mergers and acquisitions, he said. There's 'great synergy' between the two sides in areas including green energy, he said. The firm expects stronger ties and more cooperation between companies in China and South-east Asia as the latter seeks to upgrade the new energy, high technology and consumption sectors. CICC can play to its strength by facilitating two-way financing and investment services, said Wang. Peer CGS International, a unit of China Galaxy Securities, is also looking to help boost cross-border investments by Chinese and South-east Asian firms amid optimism over stronger ties between the two sides given the US tariffs, CEO Carol Fong told Bloomberg Television in early April. CICC will add more headcount in both the Gulf region and South-east Asia to aid its local expansion, Wang said, without disclosing specific targets. The company, a leading underwriter and sponsor for initial public offerings in Hong Kong, also expects listing activities in the city to pick up in 2025 from the past few years with more big deals above US$1 billion. The benchmark Hang Seng Index has gained 9.5 per cent this year, ranking among the best-performing major indexes globally. CICC's global operations began as early as 1997 when it set up a Hong Kong unit, the predecessor of CICC International. Its global business operations have over the years expanded to amass HK$194.4 billion (S$32.8 billion) in assets as at end-2024, with its net profit contributing to about 50 per cent of the group's total last year. BLOOMBERG
Bloomberg
29-04-2025
- Business
- Bloomberg
China's CICC Eyes Middle East, Southeast Asia in Global Push
China International Capital Corp., one of the nation's largest brokerages, is seeking to tap growing demand for cross-border financial services in the Persian Gulf and Southeast Asia as the firm pushes its global expansion. Beijing-based CICC is gearing up to open a new branch in Dubai to target sovereign wealth funds and conglomerates in the Gulf region, according to Wang Hanfeng, deputy president for CICC International. It's also exploring more Southeast Asian markets, after having opened a representative office in Vietnam last year and a Singapore unit in 2008.
