Is CITIC Pacific State-Owned or A Family Business

CITIC Pacific is in big trouble and some market analysts say it's finished.

Yesterday its share price fell by 55% and its valuation is down from HK$30 billion to HK$14 billion.

News media have called CITIC Pacific state-owned. But it's been run like a family business. The wholly state-owned CITIC Group is the biggest shareholder and owns 29% of Pacific, and Larry Yung owns 19%.

Yung is chairman of the board of directors. His son Carl is also an executive director and deputy managing director. His daughter Frances was director of group finance until she was demoted yesterday to take the responsibility of the HK$15 billion loss in a currencies bet.

Although CITIC Group had a 29% stake, its management, led by chairman Kong Dan and president Chang Zhenming, failed to safeguard its interest in Pacific.
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