CIMB Group Holdings Bhd shares traded lower on Thursday despite the banking group’s recent move to strengthen its cross-border banking presence through a partnership with China CITIC Bank.
As at 4:12pm, CIMB shares fell nine sen, or 1.22%, to RM7.31, after opening at RM7.36. The stock traded between RM7.31 and RM7.40 during the session, with 17.41 million shares changing hands.
The decline comes a day after CIMB Bank announced a Letter of Intent with China CITIC Bank Corporation Limited to enhance financial connectivity between China and ASEAN, focusing on facilitating trade, financing and investment flows across Malaysia and Indonesia.
The collaboration combines China CITIC Bank’s extensive onshore network in China with CIMB’s regional ASEAN footprint, allowing clients of both banks to access a broader range of cross-border banking solutions covering trade transactions, payments and financing.
Under the partnership, both banks will explore initiatives to strengthen renminbi and foreign currency payment and clearing capabilities, while also enhancing treasury, cash management and cross-border financing services.
The banks will also support businesses seeking expansion opportunities across China and ASEAN through advisory services, client referrals and assistance with regulatory requirements, cross-border transactions and merger and acquisition activities.
Despite Thursday’s pullback, CIMB shares remain above the RM7 level and have traded within a range of RM7.00 to RM9.50 over the past six months, according to Bursa Malaysia data.
