CITIC Capital To Tap Into China's Distressed Asset Market(6 December, 2004 – Hong Kong) CITIC Capital (“the Company”) is poised to tap thebusiness opportunities in China's non-performing assets market.
“China is the second largest non-performing loan market after Japan in Asia,” said
Mr. Yichen Zhang, Chief Executive Officer of CITIC Capital. “As China steps up its
efforts in opening up its financial market, it is time for us to take hold of the rising
opportunities of the distressed assets and loans market on mainland China.”
As the company recognizes the prospects of the distressed assets market comes theimpending establishment of CITIC Capital China Opportunity Fund, which will be
run by a professional team led by Mr. Wang Fanglu, a seasoned banker in China's
financial markets.
In charge of the development of distressed assets business, Mr. Wang's team is now
actively identifying potential investment opportunities from the asset managementcompanies (AMCs), as well as other financial institutions.
In a bid to clean up the distressed assets as a result of the historical problem of thesystem, China has set up four official AMCs in 1999 to deal with the four state
commercial banks' non-performing debts, to repackage and dispose of them.
“ Apart from the state banks, there are also other sellers of distressed assets
including conglomerates which are striving to exit non-core businesses,” explained
Mr. Wang, “There is an extensive playing field for both players like ourselves andforeign banks to develop in this market which is estimated to have a face value of a
few trillions renminbi.”“ Our unique strength lies in our local expertise and close relationship withbusinesses at all levels in China, complemented by the synergy with CITIC Group's
franchise in China on the one hand,” pointed out Mr. Wang, “and on the other, ourextensive experience and broad exposure of our professional team in international
financial markets, further boosted by our capabilities to advise cross-border merger
and acquisition, and restructuring.”
With over 13 years of experience in investment banking, Mr. Wang's last position
was Head of Sales and Product Marketing, China, Global Markets, at HSBC. Prior tothat, Mr. Wang has held various senior positions at top investment banks including
Salomon Brothers Inc, New York, Bankers Trust, Sakura Global Capital, Citibank
and Merrill Lynch. Mr. Wang holds a Master's degree in Statistics from University of
Chicago and bachelor degrees in International Journalism and Applied Mathematics
from Fudan University.

Since its inception in 2002, the Company has rapidly built up its diverse capabilities
in investment banking, asset management and brokerage, moving seamlessly andeffectively across primary and secondary markets for its clients. It has beenrelentlessly enhancing its asset management capabilities and expanding its productoffering. The CITIC Capital Greater China Active Fund was recently launched by
CITIC Capital in conjunction with Samsung Asset Management (Asia) Limited in
September targeted for Korean investors.
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About CITIC Capital Holdings Limited
CITIC Capital Holdings Limited was formed on 4 February 2002, which is theinternational investment banking arm established by CITIC Group in providing afull range of financial services to both private and institutional clients. After ashareholding restructuring in April 2004, currently CITIC Pacific Limited and CITIC
International Financial Holdings Limited are the major shareholders of the Company,
each holding a 50% stake in the company respectively. Leveraging on the in-depth
knowledge of China and resources backed by CITIC Group and the expertise of our
first-rate financial professionals, the Company provides comprehensive andprofessional financial services in investment banking, asset management andsecurities brokerage.