Three sources said CICC Capital, a unit of Chinese investment bank CICC (3908. HK), has stopped employing consultant Capvision Partners as other financial businesses reassess their relationships with China’s largest “expert network” company.
Beijing’s “intensifying” law enforcement to preserve national security has caught Capvision.
CICC Capital’s research division banned all teams from utilizing Capvision for due diligence-related expert calls and inquiries in a Tuesday message, according to sources.
The message said the restriction would take effect immediately and that research teams should investigate prior Capvision deals.
CICC, which handles alternate investment media inquiries, declined to comment. Reuters requested a response from Capvision.
According to individuals not authorized to speak to the media, CICC Capital’s investment teams are prohibited from utilizing Capvision for such expert calls or inquiries.
CICC Capital managed 360 billion yuan ($52 billion) of private equity funds and fund of funds as of 2022.
State media stated last week that Chinese authorities searched Capvision headquarters for national security reasons.
Capvision, China’s largest specialist network organization with offices in eight cities, was featured in many news broadcasts, including a 15-minute CCTV story on Monday.
According to CCTV, Capvision accepted international contracts to source “state secrets and intelligence” on critical industries, including defense and sophisticated technologies.
