CIC buys 40% stake in Citic Capital

China Investment, also known as CIC, will buy new shares to be issued by Citic, according to the report, which didn't provide more information on pricing.

Citic Capital had about HK$3 billion ($387 million) of capital by the end of 2008, with Citic Taifu Ltd and CITIC International Financial Holdings Limited holding 50% of the shares respectively, according to the report.

Citic Capital manages $2 billion from international investors, of which 80% are international investors, including General Electric , IBM, Canadian Pension Funds and Development Bank of Japan Inc., etc.

CIC's shareholding is good for the further development of Citic as it optimizes the background of stockholders, Citic Capital wrote in the letter.

It also added that CIC didn't seek control power to affect Citic Capital in its business location and policy. Citic Capital will maintain its business of marketization and specialization.

The injection of CIC will enhancing the capital of Citic, boosting the stability and sustainability of its business.