Citic Group Seeks to Merge Financial Leasing Units
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Chinese state-owned conglomerate Citic Group Corp. is seeking regulatory approval to merge its two financial leasing subsidiaries to resolve internal competition and comply with ownership rules.
The proposed transaction involves Citic Financial Leasing Co. Ltd. acquiring Huarong Financial Leasing Co. Ltd. Citic Group directly took over a 60% controlling stake in the latter at the end of 2024 as part of the broader restructuring of distressed debt manager Citic Financial Asset Management Co. Ltd., formerly known as China Huarong Asset Management Co. Ltd. Because Chinese regulations generally prohibit a single shareholder from controlling more than one financial leasing firm, Citic Group pledged to resolve the overlapping operations.
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- Citic Group seeks approval for Citic Financial Leasing to acquire Huarong Financial Leasing, resolving dual control after 60% stake takeover end-2024.
- Citic Financial Leasing capital tripled to 12B yuan; assets: Huarong 158.9B yuan (mid-2025), Citic 112.9B yuan (Sep end).
- Phased buyout frustrates minority shareholders like CSSC (2.16% stake); aligns with leasing sector consolidation and shift from quasi-credit activities.
- Citic Group Corp.
- Citic Group Corp., a Chinese state-owned conglomerate, seeks regulatory approval to merge subsidiaries Citic Financial Leasing (assets: 112.9B yuan) and Huarong Financial Leasing (assets: 158.9B yuan). It acquired 60% of Huarong in late 2024 during restructuring, aiming to end internal competition and comply with rules barring single-shareholder control of multiple leasing firms. Acquisition will be phased.
- Citic Financial Leasing Co. Ltd.
- Citic Financial Leasing Co. Ltd., a Citic Group subsidiary, seeks regulatory approval to acquire Huarong Financial Leasing Co. Ltd., starting with its 60% stake. China Citic Bank tripled its capital to 12 billion yuan. Assets: 112.9 billion yuan (end-Sept). Aims to resolve competition and comply with rules.
- Huarong Financial Leasing Co. Ltd.
- Huarong Financial Leasing Co. Ltd. held 158.9 billion yuan ($23.3B) in assets by mid-2025. Citic Group took a 60% controlling stake end-2024 amid China Huarong restructuring. Citic Financial Leasing plans staged acquisition to resolve ownership overlap and comply with rules barring single shareholder control of multiple leasing firms. Minority stakes, like CSSC Finance's 2.16%, face divestment delays.
- Citic Financial Asset Management Co. Ltd.
- Citic Financial Asset Management Co. Ltd., formerly China Huarong Asset Management Co. Ltd., is a distressed debt manager. Citic Group took over a 60% controlling stake in Huarong Financial Leasing at end-2024 as part of its restructuring.
- China Huarong Asset Management Co. Ltd.
- Citic Financial Asset Management Co. Ltd., formerly China Huarong Asset Management Co. Ltd., was restructured at the end of 2024. As part of this, Citic Group took a 60% stake in Huarong Financial Leasing Co. Ltd., prompting plans to merge it with Citic Financial Leasing.
- China Citic Bank Corp. Ltd.
- China Citic Bank Corp. Ltd. injected capital into Citic Financial Leasing twice over the past year, tripling its registered capital to 12 billion yuan to match Huarong Financial Leasing’s size.
- CSSC Finance Co. Ltd.
- CSSC Finance Co. Ltd. holds a 2.16% stake in Huarong Financial Leasing Co. Ltd. Facing regulatory mandates to divest non-core assets, it has repeatedly slashed its asking price on a Shanghai exchange since late 2025 but has yet to find a buyer. Citic Group is in no rush to absorb such minority stakes.
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