CICC Capital bans consulting firm Capvision after China crackdown-sources
HONG KONG – CICC Capital, a unit of Chinese investment bank CICC, has decided to stop using consultancy Capvision Partners’ services, three sources said, as some financial firms review their ties with China’s largest “expert network” group.
Capvision is the latest consultancy and due diligence firm to get caught in Beijing’s sweeping crackdown on what state media describes as “intensifying” law enforcement aimed at protecting national security.
In an internal memo issued on Tuesday, which was confirmed by sources with direct knowledge, CICC Capital’s research division said it would ban all its teams from using Capvision for due diligence-related expert calls and inquires.
The ban will come into immediate effect, the memo said, adding that the research teams should also review previous dealings with Capvision.
CICC, which handles media queries for the alternate investment arm, declined to comment. Capvision did not immediately respond to Reuters request for comment.