Citic turns down buyers seeking dollars as bridging finance

Zhengzhou

CHINESE companies seeking overseas acquisitions increasingly covet offshore dollar funds as capital controls make it hard for even state-controlled investment firms to finance deals with domestic resources.

Citic Capital Holdings Ltd, the alternative-investment arm of China's largest state-owned conglomerate, has been rejecting requests from firms asking to use its dollars as a bridge for buying assets, chairman Zhang Yichen said in an interview on Saturday.

The company's offshore dollar funds have become the only funding option for its own deals, as moving yuan overseas for itself has bec…