CITIC Securities Co, Asia's largest brokerage by market value, plans to boost investment in CITIC Securities International Co Ltd in a bid to support its global strategy.

Beijing-based CITIC Securities will add US$450 million to Hong Kong-based CITIC Securities International, or CSI, according to a statement filed to the Shanghai Stock Exchange yesterday.

CITIC Securities will spend no more than US$25 million in purchasing 11.61 percent of shares in CSI from CITIC Capital Holdings Ltd, and make CSI its wholly-owned subsidiary.

It will allocate US$425 million to enhance CSI's business capability, especially in assets management, investment banking and related businesses.

The fund will also be used to improve trading equipment and infrastructure, as well as to invest in some proprietary trades.

The plan is waiting for regulatory approval, said the statement.

"The move is an important step in the globalization of CITIC Securities. It can help to expand its income sources, diversify operational risks and soothe performance volatility," said Liang Jing, an analyst at Guotai Jun'an Securities Co.

CSI, jointly established by CITIC Securities Co and CITIC Capital Holdings Ltd in 2006, has a mission to integrate the domestic and overseas equities business of the CITIC Group.

"CITIC Securities has decided to increase the degree of internationalization of its various business lines in order to strengthen its competitiveness against an increasingly globalized and integrated financial and capital market," said CSI on its Website.

"Reflecting an enhanced business platform and strategy, CSI accommodates CITIC Securities' strategic vision to transform into a leading international investment bank."

Earlier this month, CITIC Securities announced that it had reached a preliminary strategic agreement with US investment bank Bear Stearns Cos. The collaboration involved a cross-investment of US$1 billion each to pool their business in Asia.

"Teaming up with Bear Stearns and boosting investment in CSI are very helpful to CITIC Securities, whose overseas business only accounts for three percent of its total businesses and generates a mere 0.01 percent of profit at the moment," said Liang.

CITIC Securities reported a net profit of 4.16 billion yuan (US$560 million) in the third quarter, up 558.22 percent compared with the same period last year.

CITIC Securities shares soared more than eight times in the past year, propelling the company past Nomura Holdings Inc as Asia's largest securities firm by market value.