Citibank announced to its customers that they have accelerated the pace of change by realigning Citi into two distinct businesses, Citicorp and Citi Holdings.
According to Citi, Citicorp will be focusing on leveraging the competitive advantages of the company's global reach which extends to over 100 countries and on services which include Consumer Banking and Cards, Commercial Banking, Corporate and Investment Banking, Global Transaction Services and Citi Private Bank.
Citi Holdings on the other hand will be comprised of brokerage and asset management, local consumer finance and a special asset pool.
On top of announcing it's new alignment to be officially split apart last Friday, Citigroup also acknowledged a USD $18.7 billion loss in 2008.
CEO Vikram Pandit is said to run Citigorp with someone else to take over Citi Holdings. The new structure fits as to what Pandit said last spring of which Citi businesses he would keep and those he could do without.
Sunday, January 18, 2009
Wednesday, January 7, 2009
Bank of America Sells 5.62 B shares in Chinese Bank
On Wednesday Bank of America Corp sold 5.62 billion shares in China Construction Bank at HK $3.92 per share at an 11.91 percent discount, reaping a total of HK $22.03 billion. However, Bank of America still has a holding in the mainland bank at 16.6 per cent down from 10.13 per cent.
China Construction Bank had been notified of Bank of Americas transaction and understood that the US Bank had sold its shares due to the financial situation at this time. The shares were sold to other long-term institutional investors. In terms of relativity, the disposal of shares only accounted for 29 per cent of the total shares that had its 3-year lock up period expired.
In related news, Mr. Li Ka-shing sold his stake in Bank of China for HK$4.06 billion. Mr. Li sold his shares at HK$1.98 to 2.03 each for 5.14 to 7.48 per cent lower than yesterday’s HK$2.14 close.
Foreign financial groups and other investors are being compelled to sell their shares in many mainland banks due to the need to raise cash. Bank of China, Bank of Communication, Industrial and Commercial Bank of China are also banks that have foreign institutions which hold a stake.
China Construction Bank had been notified of Bank of Americas transaction and understood that the US Bank had sold its shares due to the financial situation at this time. The shares were sold to other long-term institutional investors. In terms of relativity, the disposal of shares only accounted for 29 per cent of the total shares that had its 3-year lock up period expired.
In related news, Mr. Li Ka-shing sold his stake in Bank of China for HK$4.06 billion. Mr. Li sold his shares at HK$1.98 to 2.03 each for 5.14 to 7.48 per cent lower than yesterday’s HK$2.14 close.
Foreign financial groups and other investors are being compelled to sell their shares in many mainland banks due to the need to raise cash. Bank of China, Bank of Communication, Industrial and Commercial Bank of China are also banks that have foreign institutions which hold a stake.
Sunday, January 4, 2009
CITIC Pacific Investigated by the SFC
CITIC Pacific announced that its chairman Larry Yung Chi-kin and managing director Henry Fan Hung-ling are being investigated by the Securities and Futures Commission.
17 directors in total are being probed at the moment due to CITIC Pacific's disclosure in October that it was facing estimated losses of HK$15.5 billion from unauthorized currency trades.
Hamilton Ho Hau-hay of New World Development and directors Vernon Francis Moore and Hansen Loh Chung-hon OF CLP.
New World and CLP said they have no reason to believe that the SFC's investigation concerns, either directly or indirectly, any aspect of the affairs of their companies.
Mainland Bourses Rise in Strong Finish
After Premier Wen Jiabao's promised measures to help the steel and auto sectors, mainland shares closed up 3.29 percent.
The benchmark Shanghai Composite Index closed at 59.91 points higher at 1,880.72 on a turnover of 46.1 billion yuan.
Hong Kong share prices closed today 3.5 percent higher, buoyed by the rally in Shanghai and other strong Asian markets. The Hang Seng Index closed up 520.5 points at 15,563.31. Today's turnover was HK$49.42 billion Hong Kong.
17 directors in total are being probed at the moment due to CITIC Pacific's disclosure in October that it was facing estimated losses of HK$15.5 billion from unauthorized currency trades.
Hamilton Ho Hau-hay of New World Development and directors Vernon Francis Moore and Hansen Loh Chung-hon OF CLP.
New World and CLP said they have no reason to believe that the SFC's investigation concerns, either directly or indirectly, any aspect of the affairs of their companies.
Mainland Bourses Rise in Strong Finish
After Premier Wen Jiabao's promised measures to help the steel and auto sectors, mainland shares closed up 3.29 percent.
The benchmark Shanghai Composite Index closed at 59.91 points higher at 1,880.72 on a turnover of 46.1 billion yuan.
Hong Kong share prices closed today 3.5 percent higher, buoyed by the rally in Shanghai and other strong Asian markets. The Hang Seng Index closed up 520.5 points at 15,563.31. Today's turnover was HK$49.42 billion Hong Kong.
Tuesday, November 25, 2008
U.S. Government Outlines Rescue Package for Citigroup
On Monday the U.S. government outlined a massive rescue package for Citigroup which would include an injection of another $20 billion.
This is followed up by the initial $25 billion as part of the $700 billion bank bailout Congress passed earlier in October.
Concerns that the exposure to toxic mortgage assets have greatly rattled the markets and Citigroup stocks ended last Friday at below $4 a share. Citigroup shares are now down roughly 87 per cent this year, and the bank has announced plans to lay off 50,000 workers from its 350,000 person workforce.
This is followed up by the initial $25 billion as part of the $700 billion bank bailout Congress passed earlier in October.
Concerns that the exposure to toxic mortgage assets have greatly rattled the markets and Citigroup stocks ended last Friday at below $4 a share. Citigroup shares are now down roughly 87 per cent this year, and the bank has announced plans to lay off 50,000 workers from its 350,000 person workforce.
Monday, November 24, 2008
Gome Chief Detained in Share-price fixing Probe
Wong Kwong-yu of Gome Electrical Appliances was detained by Beijing police for questioning last week as part of an investigation into alleged market manipulation.
He is apparently being investigated for allegedly manipulating the share price of Shandong Jintai Group, a pharmaceutical company owned by his brother Hunag Junqin and listed in Shanghai.
Prices of Shandong Jintai shares have surged around the 10 per cent daily limit 26 times in July and August.
Gome shares were suspended yesterday from trading in Hong Kong and is not expected to resume trading until further announcements.
The company will look into verifying the authenticity of allegations made against their Chairman.
He is apparently being investigated for allegedly manipulating the share price of Shandong Jintai Group, a pharmaceutical company owned by his brother Hunag Junqin and listed in Shanghai.
Prices of Shandong Jintai shares have surged around the 10 per cent daily limit 26 times in July and August.
Gome shares were suspended yesterday from trading in Hong Kong and is not expected to resume trading until further announcements.
The company will look into verifying the authenticity of allegations made against their Chairman.
Wednesday, November 19, 2008
CCB Dives Tuesday on talk of US Lender Selling Stake
Shares of China Construction Bank Corp fell as much as 10.46 per cent on Tuesday amid concerns that Bank of America may sell its stake in the mainland lender.
On Monday Bank of America exercised a call option to acquire 19.58 billion H shares from China SAFE investments for $54.8 billion. Market speculators widely believe that the US lender will also sell the 19.2 billion shares of CCB H which they acquired in 2005, for which the lock-up period expired last month.
Potential disposal of old stake in shares would help Bank of America realise US$6.8 billion. It is also likely that the impact of share disposal would not be significant as it is believed that Bank of America will likely sell the shares through displacement rather than the open market.
Broker downgrades depress property stocks
JP Morgan downgraded five developers and cut share-price estimates on two leading players which resulted in lower property stocks on Tuesday. The brokerage expects residential prices to fall 35 per cent by June and office rents to drop by 40 to 50 per cent by the end of next year from the third quarter and retail rents to decline 15 per cent. JP Morgan expects earnings by most developers to fall by 13 to 17 per cent.
Monday, November 17, 2008
Bank of America to Lift Stake
China Construction Bank said that it had received a notice on Monday that Bank of America is proposing to buy 19.58 billion H shares from China SAFE Investments through a call option this month. Although they did not say how much the US lender would pay, the exercise price per share should be 1.2 times what CCBs audited net asset value at the end of September.
The audited net asset value per share was revealed to be at 2.05 RMB (HK$2.33) so Bank of America had to pay 2.46 RMB or HK$2.80. CCB shares fell 0.72 per cent close to close yesterday at HK$ 4.11.
The shares that Bank of America is seeking will be locked up until 2011.
The audited net asset value per share was revealed to be at 2.05 RMB (HK$2.33) so Bank of America had to pay 2.46 RMB or HK$2.80. CCB shares fell 0.72 per cent close to close yesterday at HK$ 4.11.
The shares that Bank of America is seeking will be locked up until 2011.
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