ABSTRACT
This chapter demonstrates how the function of the Company headquarters and some of the major “substitution variables” under its management can impact upon the Company’s business activities and development. It discusses issues such as corporate strategy, allocation of resources and coordination of transactions, organizational structure, distribution of decision-making power, policies, regulations and procedures, control and supervision mechanisms, risk-prevention mechanisms, human resources, information systems, and corporate culture. The Establishment Stage covers the period from 1979, when China International Trust and Investment Corporation (CITIC) was incorporated, to 1985. Compared to capital injection, the more valuable support was in the form of policies and institutional arrangements that the government has granted to CITIC. In 1988, CITIC decided to focus on the improvement of management and profitability in line with the national rectification campaign. An important aspect of CITIC’s business was to establish Sino-foreign joint ventures or to participate in local governments’ projects outside the State plan or fiscal budget.
