(Yicai Global) March. 5 -- CITIC Securities will spend up to CNY30 billion (USD4.5 billion) in cash to buy its stock in the secondary market as part of an employee stock ownership plan.
Staff will own up to 10 percent of CITIC's stock, according to a draft plan released by the Shenzhen-based firm.
The CNY30 billion figure is based on the firm's current value of CNY300 billion and signals that brokers are optimistic about the country's stock market, according to one market analyst.
The shareholding ratio of employees will not exceed 10 percent of units listed in China's mainland nor in the special administrative region of Hong Kong, and an individual employee's ratio will not exceed 0.5 percent.
Eligible buyers of the plan include the company's directors, supervisors, senior managers, middle managers, key employees, headquarter-based senior vice presidents, as well as domestic branch managers who have signed formal employment contracts.
Employees join the plan voluntarily and the company does not force employees to take part in the plan by means of apportionment or forced distribution, it said in the statement, adding that they joinplan at their own risk.
Share purchases through the plan will be completed within six months from when the firm's shareholders approve the move.
Editor: William Clegg