CICC Accelerates Expansion into the Middle Eastern Market
In recent developments, Chen Yongxing, the head of Asia and Australia regions at China International Capital Corporation (CICC), announced that the company has established offices in both the United Arab Emirates (UAE) and Saudi Arabia to facilitate business operations in the two countries and the broader Middle East region. Currently, CICC is in the process of obtaining the necessary operational licenses for providing financial services in these regions. Reports indicate that the company has deployed around 5-6 personnel in the Middle East, consisting of Chinese and local employees, responsible for handling regional business connections. By establishing permanent institutions, CICC aims to move away from the traditional “business trips” approach and adopt a more stable presence while expanding its operations in the Middle East.
CICC recognizes the Middle East as an untapped and massive market for the financial sector in Hong Kong. As the company expands its business in the region, it plans to create a broad platform, including the Hong Kong cooperation channel, for institutions within the region that intend to invest in the Chinese market or collaborate with Chinese enterprises (CICC International, the company’s headquarters, is based in Hong Kong).
From a broader perspective, since December 2022, China’s relations with major countries in the Middle East have been steadily improving. The level of bilateral and multilateral cooperation in politics, diplomacy, and trade has continuously escalated. This growing partnership offers more opportunities and potential for CICC to expand its operations in the Middle East and for Middle Eastern enterprises to explore the Chinese market and find Chinese partners.
In February 2023, CICC CEO, Huang Chaohui, accompanied Hong Kong Chief Executive, John Lee, on a delegation visit to Saudi Arabia and the UAE. During the visit, they met with several important strategic partners, including the Saudi Public Investment Fund, Saudi Investment Ministry, and Saudi National Development Fund. On this occasion, CICC signed a cooperation memorandum of understanding (MOU) with the Saudi Investment Ministry to enhance bilateral capital and investment cooperation between China and Saudi Arabia. While in Saudi Arabia, CICC was invited to participate in one of the world’s largest tech events, the LEAP Forum, and became a founding member of the China-Saudi Entrepreneurs Association established during the forum.
China International Capital Corporation, also known as CICC, was founded in 1995 and became the first joint venture investment bank in Mainland China. In November 2015, the company went public on the Hong Kong Stock Exchange. As of 2021, its largest shareholder is Central Huijin Investment, a subsidiary of China Investment Corporation, with a stake of approximately 43%. Other major shareholders include Singapore’s Government Investment Corporation (holding about 16% of shares) and TPG Asia V Delaware, L.P. (holding around 10%, affiliated with Texas Pacific Group, TPG), among others.