By Enda Curran
HONG KONG--China's largest brokerage is expanding its global
footprint.
Citic Securities Co. has bought a stake in U.S. brokerage firm
BTIG LLC, the company's latest move to grow outside of China
through buying a holding in a Western investment firm.
Citic made the purchase through its Hong Kong-based brokerage
CLSA Asia-Pacific Markets, which it bought from French bank Crédit
Agricole for $1.25 billion in 2013. That deal was the first major
acquisition by a Chinese broker of a foreign competitor.
China's banks have steadily increased their global influence in
recent years by taking advantage of economic weakness in the West
to acquire stakes in capital-hungry banks or through beefing up
their presence in the global loan market.
In January, Industrial & Commercial Bank of China, the
country's biggest bank by assets, bought a controlling stake in
Standard Bank PLC's London-based global markets business.
Terms of Citic's deal with BTIG weren't disclosed. The U.S.
brokerage said it would operate as an independent unit and plans to
use the proceeds from the stake sale to expand its business.
BTIG has enjoyed rapid growth over the past decade, expanding to
over 450 staff in offices across the U.S. and in four locations
around the world. The firm has added 75 staff in the past year, and
its offerings include trading in equities, derivatives, futures,
commodities and foreign exchange.
"The investment by CLSA will help us pursue continued growth in
our core businesses and help us expand into new areas," Scott
Kovalik, BTIG chief executive officer and co-founder, said.
Citic Securities is listed in Hong Kong and Shanghai and is 20%
owned by conglomerate Citic Group Co., which in turn is owned by
the Chinese government.
CLSA has built a reputation around its often tongue-in-cheek
research and provocative analysts such as Christopher Wood, author
of the widely read Greed & Fear newsletter. The firm has drawn
attention for its investor forums featuring keynote speakers such
as former heavyweight boxing champion Mike Tyson and popular music
acts including Katy Perry.
Write to Enda Curran at enda.curran@wsj.com
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