Citic Ltd., a Chinese conglomerate with assets from financial services to energy, said it was mulling listing some units, just as Chinese stocks plunged by the most since 2007.
“Some of our unlisted subsidiaries have quality assets with high potential that are under-appreciated and under-valued by the market,” Chairman Chang Zhenming said in a statement to Hong Kong’s stock exchange on Monday. “One solution is to bring these businesses to the market when the timing is right.”
Chang said Citic units could also look to team up with other companies, adding that this was the thinking behind drawing in overseas investors such as Japan’s Itochu Corp. and Thailand’s Charoen Pokphand Group.
The chairman’s comments came as China’s benchmark stock index tumbled as much as 8.8 percent on a worsening economy and concern that the government may withdraw from its efforts to prop up the market.
Real-estate assets are those most likely to be listed by Citic, and no move is likely until at least next year, Ronald Wan, chief executive at Partners Capital International Ltd. in Hong Kong, said by phone.
Citic said in March that it was undertaking a review that could lead to a restructuring of businesses including real estate, oil fields and mines.
Citic’s net income rose 46 percent from a year earlier in the first half to HK$37.7 billion ($4.9 billion), the company said on Monday. While financial services are the biggest contributor to the firm’s profits, Zhang didn’t comment in his statement on the market turmoil that last month prompted unprecedented government moves to support stocks.
In Hong Kong, shares of the state-controlled Citic fell 3.3 percent as of 1:02 p.m. local time, heading for the biggest decline since July 8.
Citic sprang from Citic Group, China’s first state-owned investment corporation, which was set up in 1979. The company, which describes itself as China’s biggest conglomerate, holds stakes in firms including Citic Securities Co., the nation’s biggest listed brokerage, and lender China Citic Bank Corp.