CITIC, China Renaissance join hands in push to tap into China’s booming internet business

Chinese brokerage CITIC Securities and investment bank China Renaissance will join forces to offer financial services tailored for internet businesses to tap into the country’s entrepreneurship boom.

The two plan to expand services in private equity financing, initial public share offers, mergers and acquisitions and restructuring, among others, for tech-focused start-ups, they said in a joint statement.

China is seeing a surge in start-up companies as the government pushes through reforms to allow market forces more of a role in the economy.

Several start-ups have become global success stories, most notably drone maker DJI Technology, which is on track to be the most valuable start-up ever and effectively controls the market for consumer drones.

In addition, the government has laid out its Internet Plus strategy, which is aimed at promoting the transition to a digital economy, a must-do job as the conventional economy slows and exposes structural flaws.

Premier Li Keqiang, announcing the strategy, said it would take the economy to a higher level, though some observers noted that not all start-ups become like DJI: Typically, only about 10 per cent survive.

CITIC Securities and China Renaissance will select promising new start-ups and provide them a range of investment banking services, the two said.

CITIC Securities is the dominant investment banking and asset management house in China, while China Renaissance has had hands in many technology-related deals, including the merger earlier this year of car-hailing apps Didi Dache and Kuaidi Dache.