Economic Environment and Conditions

CITIC Limited operates diversified businesses globally. As a result, the Group’s financial condition, operations and business prospects are, to a significant degree, subject to the development of both international and domestic economies, as well as the political and legislative environment.

As China’s economy has entered into a restructuring period, the formation of new growth drivers involves further reforms in a variety of areas, including politics, economy, technology, culture and society. With the slower than expected global economic recovery, growth remains soft in the developed economies and tends to be more divergent across regions due to significant differences in inherent structures. In emerging markets, albeit with a slight acceleration in the growth rate, the economic rebound is still vulnerable due to the lowering of potential market growth as well as the decline in commodity prices and capital outflows. If negative economic factors appear in countries and regions in which CITIC Limited operates, there might be an adverse impact on the Group’s operations, financial condition and profitability.