Business
16:40, 04-Apr-2018
Citic Group focuses on a shift in strategy
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Citic Group, China's state-owned banking and financial conglomerate, is announcing a shift in strategy. It now wants to build up stronger business portfolios in digital finance and non-financial sectors, to meet new market demands.
Citic used to have only traditional banking and financial services, according to the group's vice chairman Wang Jiong. In the future, Wang said that the group would focus on building “synergies between our businesses and China's new economic sectors, and between our China operations with overseas ventures.”
“We are also looking at China's internet plus strategy and new businesses in that area. We see lots of opportunities in driving new ventures and innovation in our management model,” he added.
And the scope of Citic’s non-financial businesses is wider than expected – the conglomerate has been buying McDonald’s China business and tire products in Formula One. What area will be the next? Instead of giving out detailed buying list, Wang said the group would pay more attention to “strategic redirection.”
A McDonald's fast food restaurant sign is seen past a Chinese lion statue in Beijing on January 9, 2017. /VCG Photo
A McDonald's fast food restaurant sign is seen past a Chinese lion statue in Beijing on January 9, 2017. /VCG Photo
“We want to combine businesses in both cyclical and counter cyclical industries for future profits. Consumer sector is a counter-cyclical industry. We want to drive the innovation in that area. We are also open to global opportunities to lift our value in a shared progress with stakeholders,” Wang explained.
With the new brand strategy, Citic is going global and going smart, where fin-tech plays a significant role. Based on his words, Citic will seek for breakthroughs in applying new technologies into businesses, as well as the internet of things and trade development.
“The development of internet finance is less about building platforms than seeking integration with our industry. We have our own cloud and industry alliance for technology. Blockchain is a hot topic, but we'd like to refine our current business first. We have some interest in crypto currency, but the development in that area relies on technology, policy and management. We will continue to look at this sector and look for opportunities,” Wang told CGTN.