China's CITIC Sec plans to buy back stake in fund company

SHANGHAI Tue May 21, 2013 8:51pm EDT

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SHANGHAI May 22 (Reuters) - CITIC Securities Co Ltd , China's biggest brokerage, plans to spend up to 2 billion yuan ($325.97 million) to acquire a 10 percent stake in China Asset Management, the country's top fund management company, it said late on Tuesday.

CITIC Securities will buy the stake from Wuxi Guolian Development Group and will hold 59 percent of China Asset Management when the acquisition is complete, the securities firm said in a filing to the Shanghai Stock Exchange.

The brokerage was forced to sell down its stake last year following a regulatory requirement that barred Chinese companies from holding shares in more than two securities firms, or holding a controlling stake in more than one.

Authorities said last week that the regulation is under review.

CITIC Securities sold the 10 percent stake in China Asset Management to Wuxi Guolian for 1.6 billion yuan last year.

($1 = 6.1356 Chinese yuan) (Reporting by Fayen Wong; Editing by Stephen Coates)

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