Citic Securities stumbles in global push

Trading commissions from some of its biggest erstwhile international clients – BlackRock Inc and Capital Group – have plunged, while more than half the revenue from its equities business now comes from selling derivatives to predominantly mainland Chinese clients, sources say. — Reuters

SHANGHAI: Citic Securities Co’s dream of going toe-to-toe with Wall Street’s powerhouses in global finance is fizzling over troubles at its once free-wheeling Hong Kong operations.

CLSA Ltd, acquired by Citic a decade ago to spearhead the Chinese broker’s international expansion, has seen more than 750 employees, or about a third of the staff, quit since 2021 after increasing clashes between its Beijing and Hong Kong workers, cuts in pay and budgets as well as management issues, said people familiar with the matter.