Aryanews- China International Trust and Investment Corp (CITIC) is mulling floating its real estate arm, but uncertain markets make it hard to decide when, the head of country's top financial group said on Thursday.
CITIC Real Estate, which posted a 1 billion yuan ($147 million) net profit last year, accounted for around 5 percent of the group's total and is seen as a substantial driver for CITIC's business down the road, Chairman Kong Dan said.
"We will consider an initial public offering for the property business on the basis of its improving business performance," Kong said in a media briefing on the sidelines of the annual session of parliament.
A listing in either Shanghai or Hong Kong was possible, he added.
"If market sentiment is not favourable over the short term, the group will offer financial support to real estate arm, which can also raise fund through other channels in the market."
Shares in Shanghai <.SSEC> and Hong Kong <.HSI> have fallen 6.9 percent and 3.4 percent respectively so far this year.
"If banks are rushing to replenish their capital at the same time, it would pressure the Chinese capital market," Kong said, referring to the recent fundraising efforts by Chinese banks after a lending binge in 2009.