Shares of China Industrial Securities International Financial Group Ltd (CICC) surged over 5% on Tuesday following the company's announcement of disposing $10 million worth of perpetual securities.
The Beijing-based investment bank said it had sold the perpetual securities for a consideration of $9.9 million. While the transaction amount is relatively small, it is seen as a positive move by investors as it could improve CICC's financial flexibility and balance sheet strength.
Perpetual securities, also known as hybrid securities, have characteristics of both debt and equity. By disposing these securities, CICC can reduce its leverage and future interest payment obligations. This could free up capital for the firm to invest in core operations or new business initiatives.
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