Editing CITIC Group (section)

== CITIC CEFC bond default ==

In November 2016, CITIC CLSA acted as the sole bookrunner for CEFC Shanghai's US$250 bond issuance. CITIC CLSA hid from the market that the bond deal was only 60% subscribed at pricing.  It manipulated the bond price in the secondary market in an effort to offload the 100mm USD bond CITIC CLSA held on its balance sheet.<ref name="debtwire.com">{{Cite news|url = https://www.debtwire.com/info/cefc-energy-retail-bondholders-file-sfc-complaint-against-bond-bookrunner-clsa|title = UPDATE 1- CEFC Energy Retail Bondholders File SFC Complaint against Bond Bookrunner CLSA|newspaper = Debtwire|date = 2020-12-30|access-date = 2021-03-29|archive-date = 2021-04-20|archive-url = https://web.archive.org/web/20210420005432/https://www.debtwire.com/info/cefc-energy-retail-bondholders-file-sfc-complaint-against-bond-bookrunner-clsa|url-status = live}}</ref>

In May 2018, CITIC Group announced they would repay ca 450 million euros owed by CEFC Europe to finance and banking group [[J&T]] within days but since the debt was not paid a week later, J&T announced it had taken over shareholder rights and installed crisis management at CEFC Europe.<ref>{{Cite news|url = https://www.reuters.com/article/china-cefc-czech-citic/update-1-chinas-citic-to-pay-cefc-europes-450-mln-euro-debt-cefc-official-idUSL8N1SG7V8|title = UPDATE 1-China's CITIC to pay CEFC Europe's 450 MLN euro debt - CEFC official|newspaper = Reuters|date = 2018-05-09|access-date = 2021-03-29|archive-date = 2021-04-29|archive-url = https://web.archive.org/web/20210429043126/https://www.reuters.com/article/china-cefc-czech-citic/update-1-chinas-citic-to-pay-cefc-europes-450-mln-euro-debt-cefc-official-idUSL8N1SG7V8|url-status = live}}</ref><ref>{{Cite news|url = https://uk.reuters.com/article/china-cefc-czech/update-1-jt-private-investments-says-takes-over-shareholder-rights-in-cefc-europe-idUKL5N1SO6E5|title = UPDATE 2-J&T Private Investments says takes over shareholder rights in CEFC Europe|newspaper = Reuters|date = 2018-05-17|access-date = 2021-03-29|archive-date = 2018-07-05|archive-url = https://web.archive.org/web/20180705080803/https://uk.reuters.com/article/china-cefc-czech/update-1-jt-private-investments-says-takes-over-shareholder-rights-in-cefc-europe-idUKL5N1SO6E5|url-status = dead}}</ref> Several days later, CEFC Shanghai defaulted on $327 million in bond payments, and offered to make the payments six months after the maturity date.<ref>{{Cite news|url = https://www.reuters.com/article/china-bonds-cefc/update-1-cefc-shanghai-international-defaults-on-327-mln-in-bond-payments-idUSL3N1SS3NB|title = UPDATE 1-CEFC Shanghai International defaults on $327 MLN in bond payments|newspaper = Reuters|date = 2018-05-21|access-date = 2021-03-29|archive-date = 2021-04-29|archive-url = https://web.archive.org/web/20210429011149/https://www.reuters.com/article/china-bonds-cefc/update-1-cefc-shanghai-international-defaults-on-327-mln-in-bond-payments-idUSL3N1SS3NB|url-status = live}}</ref>

In October 2020, some retail CEFC bondholders in Hong Kong filed a complaint to the Securities and Futures Commission in Hong Kong against the bond's sole underwriter CITIC CLSA.<ref name="debtwire.com"/>