CITIC Pacific shares set to open 20 percent higher after parent agrees to inject assets
HONG KONG Shares in Chinese steel-to-property conglomerate CITIC Pacific Ltd (0267.HK) are indicated to open 20 percent higher on Thursday after its parent CITIC Group agreed to inject its main operating arm into CITIC Pacific.
CITIC Pacific said in a filing late on Wednesday that it will purchase 100 percent of CITIC Ltd, which had total equity of about 225 billion yuan ($36.3 billion) at the end of 2013.
CITIC Ltd's businesses in China range from real estate to banking, securities, infrastructure, energy, natural resources and engineering among others. CITIC Ltd made a net profit of 34 billion yuan in 2013, the filing said.
Shares in CITIC Pacific are indicated to open at HK$15.20, up 20 percent from their previous close, while the benchmark Hang Seng Index .HSI is set to start flat.
CITIC Pacific shares had been suspended from trading since last Monday pending an announcement.
(Reporting by Denny Thomas; Editing by Kenneth Maxwell)