Citic Buys Stake in U.S. Brokerage BTIG

By Enda Curran 

HONG KONG--China's largest brokerage is expanding its global footprint.

Citic Securities Co. has bought a stake in U.S. brokerage firm BTIG LLC, the company's latest move to grow outside of China through buying a holding in a Western investment firm.

Citic made the purchase through its Hong Kong-based brokerage CLSA Asia-Pacific Markets, which it bought from French bank Crédit Agricole for $1.25 billion in 2013. That deal was the first major acquisition by a Chinese broker of a foreign competitor.

China's banks have steadily increased their global influence in recent years by taking advantage of economic weakness in the West to acquire stakes in capital-hungry banks or through beefing up their presence in the global loan market.

In January, Industrial & Commercial Bank of China, the country's biggest bank by assets, bought a controlling stake in Standard Bank PLC's London-based global markets business.

Terms of Citic's deal with BTIG weren't disclosed. The U.S. brokerage said it would operate as an independent unit and plans to use the proceeds from the stake sale to expand its business.

BTIG has enjoyed rapid growth over the past decade, expanding to over 450 staff in offices across the U.S. and in four locations around the world. The firm has added 75 staff in the past year, and its offerings include trading in equities, derivatives, futures, commodities and foreign exchange.

"The investment by CLSA will help us pursue continued growth in our core businesses and help us expand into new areas," Scott Kovalik, BTIG chief executive officer and co-founder, said.

Citic Securities is listed in Hong Kong and Shanghai and is 20% owned by conglomerate Citic Group Co., which in turn is owned by the Chinese government.

CLSA has built a reputation around its often tongue-in-cheek research and provocative analysts such as Christopher Wood, author of the widely read Greed & Fear newsletter. The firm has drawn attention for its investor forums featuring keynote speakers such as former heavyweight boxing champion Mike Tyson and popular music acts including Katy Perry.

Write to Enda Curran at [e-mail]

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