CITIC completes purchase of HK brokerage

CITIC Securities, one of China's leading brokerages, has completed its purchase of Hong Kong-based brokerage CLSA Asia-Pacific markets from French banking group Credit Agricole for $1.25 billion.

In a filing to the Hong Kong Stock Exchange on Wednesday, CITIC said it will be acquiring CLSA, a brokerage that specializes in stocks in Asia. The move, the company said, increases its ability to raise capital for Chinese companies by tapping into CLSA's global client list of 1,700 institutional investors.

CITIC last year agreed to acquire CLSA in two stages. The Chinese brokerage initially completed the purchase of a 19.9-percent stake in CLSA for $310.3 million. Credit Agricole gave CITIC an irrevocable option to buy the remaining 80.1 percent stake for $941.7 million.

Executives said CITIC plans to grow its fixed income business and act as a gateway for global investors in China, according to The Wall Street Journal.

CITIC is listed in Hong Kong and Shanghai, and State-owned conglomerate CITIC Group owns 20 percent of the brokerage's shares.