CICC reportedly mulls Southeast Asia expansion

China International Capital Corporation (CICC) (中金公司), an investment bank headquartered in Beijing, is reportedly planning to expand into Southeast Asia by opening offices in countries such as Malaysia and Indonesia.

According to Reuters, Wang Shuguang, head of the investment banking department, CICC, said that the expansion is driven by a slowdown in domestic deals, which has impacted its growth prospects.

Wang oversees more than 2,000 investment bankers at CICC, according to the report. He said the group sees promising business prospects in Southeast Asia and hopes to capitalise on these opportunities by establishing a local presence through new offices.

This aims to allow CICC to get closer to regional clients and support their growth ambitions.

Meanwhile, Wang did not disclose details on the investment amount, hiring plans, or revenue and deal targets for the regional expansion. 

MARKETING-INTERACTIVE has reached out to CICC for more information. 

Founded in 1995, CICC has established subsidiaries or branches in seven international financial centres, including Hong Kong, New York, London, Singapore, San Francisco, Frankfurt, and Tokyo.

Meanwhile, CICC is reportedly planning to cut its investment banking headcount by at least 10% this year. According to a Reuters report in May, the decision is driven by the ongoing capital market downturn and sluggish economic conditions, which have dampened the firm's growth prospects.

According to the report, CICC is planning to downsize its mainland China-based investment banking division by around one-third between 2024 and 2026. This may involve an annual staff turnover rate of around 13%, primarily impacting investment banking staff in cities such as Beijing, Shanghai and Shenzhen.

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