Citic Securities Would Face Takeover in Daiwa's `Worst Case'

  • Analysts lay out 4 potential developments for top China broker
  • Brokerage's `crisis' could lead to restructuring: Daiwa
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Citic Securities Co., China’s biggest brokerage, may be acquired by a rival in a regulator-driven transaction if its woes deepen beyond existing management “turmoil” and regulatory and legal probes, according to Daiwa Securities Group Inc.

That’s the worst-case scenario, Daiwa analysts led by Leon Qi said in a Nov. 30 note that laid out four alternatives for what happens next for the firm.