CITIC Capital and CITIC Securities Join Forces to Create an Integrated,
Cross-Border Equities BusinessHong Kong, January 16, 2006: CITIC Capital Holdings Ltd. (“CITIC Capital”) andCITIC Securities Co., Ltd. (“CITIC Securities”) today jointly announced that they
have signed a Memorandum of Understanding (the “MOU”) and agreed to join
forces in developing an integrated, cross-border, Greater China focused equities
business platform.
Under the MOU, CITIC Securities (HK) Limited (“CITIC Securities HK”), in which
CITIC Securities will own a majority stake with CITIC Capital as the minority
shareholder, will be the engine for integrating the domestic and overseas equities
businesses of CITIC Group. CITIC Capital’s equities business (the “ECMBusinesses”), including origination, equity capital markets, institutional and retailsales, part of equity research, and related back office and support functions, will betransferred to CITIC Securities HK. Mr. Ted Tokuchi, Head of Investment Banking at
CITIC Securities, will become the Chairman of CITIC Securities HK and Mr.
Dominic Li, currently the Chief Operating Officer of CITIC Capital, will become theChief Executive Officer of CITIC Securities HK.
Mr. Wang Jun, Chairman of CITIC Group, said, “CITIC Capital and CITIC Securities
have been separately built and successfully grown under separate regulatory
regimes. With the recent reforms in regulatory environment and the growing
business need to develop cross- border capabilities, we believe it is time to integrate
the resources in order to capitalize on the cross-border capital markets opportunities
and maintain CITIC’s leadership in China focused investment banking business.”
Mr. Wang Dongming, Chairman of CITIC Securities, commented, “The strategic
integration of the equities businesses of CITIC Capital and CITIC Securities will
immediately create a unique, full-fledged cross-border platform which would enable
us to take advantage of the opportunities domestically and overseas and better serve
our clients and investors.”
Mr. Zhang Yichen, Chief Executive Officer of CITIC Capital, said, “Since CITIC
Capital’s inception in 2002, our equities business has rapidly established its presencein the Hong Kong market. Our proven expertise and track record in international
equities will bring enormous advantages to the integrated platform and enable
CITIC Securities to accelerate its international expansion, as well as provide
tremendous opportunities for our employees and enhance our shareholders’ return.”“After the completion of the injection of our ECM Businesses into CITIC Securities
HK, CITIC Capital will focus on developing our principal businesses of asset
management and investments in private equity, real estate and marketable
alternative investment products and on corporate advisory, structured products andmezzanine financing. This focused business model will be further augmented by ourcontemplated investment in CITIC Trust & Investment Co., Ltd. which is expected toserve as an important part of our cross-border asset management and corporate
advisory platform, and allow us to better capitalize on the increasing cross-border
capital and investment flows.” Mr. Zhang added.
The proposed transaction is subject to regulatory approvals in Hong Kong and theMainland.

Editors’ Notes
About CITIC Capital Holdings Ltd.
CITIC Capital Holdings Limited was formed on 4 February 2002 and has served asthe international investment banking arm of CITIC Group providing a full range offinancial services to both private and institutional clients. CITIC Pacific Limited andCITIC International Financial Holdings Limited each holds a 50% stake in thecompany. Leveraging on the in-depth knowledge of China and the resources ofCITIC Group, and the expertise of its financial professionals, the Company provides
comprehensive and professional financial services in investment banking, asset
management and securities brokerage. For more information, please visit
www.citiccapital.com.
About CITIC Securities Co., Ltd.
CITIC Securities Co., Ltd. was formed on 25 October 1995 and its shares are listed onthe Shanghai Stock Exchange. It is one of the largest securities houses in Mainland
China in terms of net assets and provides comprehensive and full-range of financial
services to domestic customers. For more information, please visit, www.ecitic.com.