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The interesting backstory to this is that Swire and CLSA's ultimate owner Citic were once very close allies.
Citic was Swire's passport to China in the 1980s, 1990s and 2000s.
Citic was Swire's passport to China in the 1980s, 1990s and 2000s.
As @jamie_freed says, Citic had 17% of Cathay until 2009:
But the connections go deeper. Its mainland Chinese Coke bottling operations were a Citic JV. So was Dragonair, now Cathay Dragon, which opened up mainland China flights.
But the connections go deeper. Its mainland Chinese Coke bottling operations were a Citic JV. So was Dragonair, now Cathay Dragon, which opened up mainland China flights.
@Jamie_Freed They've had or have jointly-owned malls, logistics businesses, distribution companies, etc. etc.
At the time Citic sold out of Cathay in 2009 it wasn't seen as a big deal -- another SOE, Air China, took its place.
At the time Citic sold out of Cathay in 2009 it wasn't seen as a big deal -- another SOE, Air China, took its place.
@Jamie_Freed But I wonder if the gradual disintegration of that once quite tight relationship has contributed to the way Swire has been left without a mainland ally.
@Jamie_Freed I may be getting the history of this wrong, but from what I can see they started to drift apart when Larry Yung's family were removed from Citic.
Yung's father Rong Yiren set up Citic with Deng Xiaoping's blessing and was China's vice-president in the 1990s.
Yung's father Rong Yiren set up Citic with Deng Xiaoping's blessing and was China's vice-president in the 1990s.
@Jamie_Freed Yung and his family inherited control of the group, and you can see how there might have been some fellow-feeling between the Rong/Yung and Swire family dynasties. scmp.com/business/compa…
@Jamie_Freed Yung was removed in 2009 amid an investigation of trading losses, about six months before Citic sold out of Cathay. Chang Zhenming, his successor, has been in charge ever since: scmp.com/article/676217…
