Chinese Bank of China to rob a single Yi Tai group

--The first coal B to send a, H-Share text | The reporter Wang moved in Ordos, Inner Mongolia, one person briefed the Economist on the progress of the IPO financing of Inner Mongolia's Yi Tai Group (hereinafter "the Group"), "a recent CICC investment manager has written an email to the group to make its own decisions, The introduction of BOC International to jointly undertake the sponsorship business, expressed dissatisfaction. "A mountain is two tigers, and so is the investment banking sector." From the bull to date, the listed companies often see the "joint sponsorship" and "joint principal underwriting" the emergence of the words.　　But even so, competition among peers is inevitable, driven by interest, even if it is an intimate joint underwriting.　　Therefore, as China's top brokerage of CICC and BOC, there is a conflict of interest, this is not a curious thing. CICC and BOC "the group currently has a listed company, namely, Yi Tai B (900948), but currently in the B-share market is simply unable to meet the company's development requirements, so the group also hope to be able to market in more influential markets."　　"In Ordos, Inner Mongolia, this newspaper reporter heard the news.　　The current group, the scale has been very alarming, the assets reached 30.5 billion yuan, ranked No. 248 in the top 500 of Chinese enterprises, in the ranking of coal enterprises has reached the 20th place, is the State Council in the National Planning and construction of 13 major coal base backbone enterprises. In mainland China, CICC and another "giants" brokerage Citic Securities, almost monopolized the large enterprise project resources. Such projects, naturally, will not escape the vision of CICC. "So to speak, this project is CICC excavated. "And on this project, CICC has been working for some time," said the person.　　"Therefore, it is not difficult to understand that when the group introduced the BOC International, CICC will produce dissatisfaction." "At this time, the group also introduced the BOC International, so that CICC's project team is very unhappy." "The people briefed on the matter further spoke of CICC's well-known industry status," CICC is sufficient for a A-share listing only. The reason for the introduction of BOC International is that the group is also trying to list H shares.　　"Why does the H-share listing require BOC international intervention?" As a global coordinator and underwriter, CICC's performance in Hong Kong has been commendable in the past few years, with Fosun International, Citic Bank, China Life, the Chinese coal Energy, China Telecom, ICBC and the merchant bank, all notable projects.　　But the management of the group seems to be more reliant on the Hong Kong underwriting capacity of BOC International. "CICC has a dominant position in the sponsorship and underwriting of major mainland projects," he said. And in the past two years, BOC International in the A-share market appeal far less than in the past, the IPO project also on the Societe Generale and the gold and molybdenum shares worth mentioning, of which the gold and molybdenum shares or CICC joint main underwriting, a-share performance is obviously not as CICC. "ACICC and BOC International have cooperated with industry insiders told reporters, "but in Hong Kong, the Bank of China seems to have some advantages." CICC is a subsidiary of CICC and operates mainly in Hong Kong, a large state-owned company that serves CICC. The BOC Hong Kong Company is directly owned by BOC International Holdings, which is the same level as the mainland's BOC International. After many years of operation, Hong Kong has become a very powerful brokerage, not only in investment banking, but also in the brokerage and trading departments, the strength of the Bank of China is the premier. What makes mainland companies so tempting is that BOC Hong Kong not only has the capacity to promote the listing of large state-owned enterprises in Hong Kong, but has also been involved in more private companies and local companies listed in Hong Kong.　　"As a result, some of the weaker companies, such as the group, may choose BOC International to underwrite their possible H-shares." It must be hard for CICC to accept. "The strength of the CICC project team is very well known. "At a meeting, a senior intermediary told reporters about his cooperation with CICC," CICC is keen on a project coordination meeting to come up with a solution when it comes to listing hurdles. That's not surprising, but CICC leaves us with very little preparation time compared to other brokerages ' prior notice. It is often the notification that a meeting is requested immediately. "Here, the old intermediary shook his head," Who let them be big brokerage. "Although the intermediary expressed dissatisfaction with CICC, but when it comes to the development of the project, he still think that the problem is not," it should be said from the project personnel, more or less there will be some conflict, after all, the interests of the relevant. But CICC's relationship with BOC International is good. Two companies have deep connections at the top, and it's impossible to argue over how big a project can be.　　"Moreover, if the CICC can be listed, it is a good project for investment banks to bring huge profits, even if the share of a piece of soup, can make a fortune."　　The group was the first B-share-listed coal company, but the group was one of the few quality companies to be compared with other siblings in the B-shares market. First of all, to see the environment, the group is located in the Inner Mongolia coal industry, is in the high-speed development.　　In the first quarter of 2009, the coal production in Inner Mongolia reached 129.8 million tons, which grew close to 30%, and the output and growth rate of raw coal surpassed Shanxi for the first time, and it was the first place in China since then August 2008. Strictly speaking, Shanxi's status as China's largest coal province will not change in the short term.　　Shanxi's poor performance in 2009, in large part because Shanxi is speeding up the promotion of vigorous resource integration movement, resulting in a large number of small coal mines in production, production capacity is not fully released. But it is noteworthy that the Chinese Coal Marketing Association, the relevant Personage said, perhaps the recent coal production in Inner Mongolia more than the contingency of Shanxi,But from the coal reserves, Inner Mongolia is indeed richer than Shanxi, in the long run, production over Shanxi is inevitable. In the industry's unanimous optimistic, Inner Mongolia to its own positioning is "the future of China's most important strategic energy base." And the rise of Inner Mongolia's coal industry may even change China's energy map, and the group is on the cusp. B2009 the first half of the year's financial report, you can see the first half of the company produced 11.6967 million tons of raw coal, an increase of 50.5%.　　The growth of coal sales, along with the recovery of coal prices, but also natural impetus to the growth of the Yi Tai B, the first half of its main business income reached 4.98 billion yuan, an increase of 50.14%, to achieve net profit of 1.252 billion yuan, an increase of 48.7%.　　It can be said that the Thai group listed financing, it is the general trend, not to mention, the group is still in high-speed expansion. October 10, the listed company Guangzhou Holding issued a notice, announced the company's subsidiary Guangzhou Zhujiang Power Fuel Co., Ltd. and China Coal Energy Group, respectively, signed a long-term coal supply and demand agreement. It is not difficult to find that the Iranian group's occupation of the market has swept the Pearl River Delta region. If the agreement is carefully examined, it will be found that in 2010-2014, the coal provided by the coal to 4.8 million tons, while the group will provide 7.4 million tons, and according to the production and demand of the annual demand and supply volume within the scope of ±10% adjustment, in the actual implementation of the balance of cash.　　In other words, the most important supplier of the deal is the group. In addition to raw coal production operations, the group also began to extend the line of business efforts.　　March 27, Yi Tai B investment in coal-made oil synthesis equipment successfully output qualified oil, the company is expected to achieve a smooth operation in December. In the near future, the company also announced two investment options, including the 96% subsidiary of the Iran-Thailand B-Tai East Railway Co., Ltd. decided to build additional quasi-east railway lines, the total investment of 2.263 billion yuan.　　In addition, the decision to invest in the hotel industry, will set up a five-star Radegast Hotel Limited liability company, the new company registered capital reached 1.2 billion yuan.　　With the increasingly tight international energy prices, coal companies are now listed, is an excellent opportunity, and the group is also trying to find their own development highlights. From the point of view of choosing an underwriting institution, both CICC and BOC International are good choices.　　Of course, it may be better to work together, because in 2008 CICC and BOC International also joined hands to put China's coal giant, the coal-mining power, into the capital market.　　But for the listing work, the performance of the enterprise is not sufficient and necessary, both in Hong Kong and in the mainland, regulators and exchanges will be on some basic issues, such as the most basic independence, to ensure that enterprises can continue to operate after the listing. "Both in Hong Kong and in the mainland, the independence of corporate assets and the absence of flaws in the way assets are made are fundamental requirements." "AAn insider who has been in the capital market for more than 15 years has told our correspondent. According to our correspondent, the group also has flaws, its planned listing of assets of land ownership and access to problems. In other words, the land obtained by the group is not fully compliant. In a A-share listing, the acquisition of land can be said to be the focus of supervision Department. Even an H-share issue cannot evade the CSRC.　　It is therefore doubtful whether the group will be able to secure a listing. However, from the point of view of the industry, the group out of the B shares, to achieve in the A or H-share market, the initial public offering is worth looking forward to.　　As a result, this may also involve the future development of the B-share market, which has been pending for many years.　　Exploring the road to the B-share solution The huge historical legacy of the B-Shares, which the group wants to escape from the B-share. B shares, also known as domestic listed foreign shares, was created to meet the needs of foreign investors for Chinese stocks. But the B-shares, known as China's assets, have long since lost the appetite of investors.　　As the first company to complete the B-share listing, the group was also proud, but after experiencing the ups and downs of the B-shares market, it must be filled with emotion. In the current environment, foreign institutions to buy Chinese stocks, still have to pass the strict approval of the QFII system. Get a limited amount of money to complete the investment.　　In theory, B-shares that can be invested directly in foreign currencies (dollars or HKD) should be a good alternative.　　But that is not the case, the poor trading volume from the current B-share can be seen, both domestic and foreign investors have already lost confidence in it, on average more than 50% of the B stock discount rate has been able to show that investors would rather buy a more expensive a-share, but also unwilling to buy cheap, but uncertain future of the B. Fundamentally, this is because the financing function of the B-share market has largely disappeared. From the historical data, the B-share market has been a long time no financing and refinancing cases, the most recent financing of B-shares, is the October 2000 IPO of the Ray B (200168), from this distance has been 9 years.　　As a B-share listed company, the group is still willing to invest a lot of money in the embrace of a or H-shares, which illustrates the helplessness of the B-shares market. As a result, the ageing of the B-share market and the poor performance of most B-shares have constrained the market's development. At the same time, the implementation of the QFII system and the large number of state-owned enterprises listed in the H shares also gave foreign investors more choice.　　In this way, B-share reform can be said to be imperative.　　The problem is that this reform involves system reform, more related to the existence and abolition of the B-share market, it is not easy to propose a reasonable and effective scheme which can be accepted by investors. The most common saying is that B shares to a A-share, the two markets merged. Because of the rise of the H-share market and the increasing number of Chinese companies listed overseas, the existence of B shares has lost its meaning. Moreover, if B shares can be converted to a-shares, investors have also been found to cross the market arbitrage machineYes. For companies that both share a and B shares, it is tantamount to allowing investors to buy B-shares at very low prices (since B shares have an average discount of more than 50% per cent) and convert them to a higher-priced a-share.　　So when the news came out on the market, the B-share market was once in a crazy rally. However, this is not easy to do, its biggest obstacle is that a-share and B-trading currencies are not uniform.　　The prerequisite for the merger of A and B shares can only be free convertibility under the capital account, but since the renminbi is not yet freely convertible, the Chinese government cannot accept the overall conversion of the B-share market. So, in 2007, another voice began to surface, and that was the conversion of B shares into H shares. Because H shares are through the HKD, it is easier to convert to B-shares.　　The Shenzhen B-shares are traded in Hong Kong dollars, and the linked exchange rate system with the US dollar makes it easier for Shanghai B-shares to pass the dollar into H shares. June 2008, chenming paper in Hong Kong listed transactions, became the first in China to issue a-share, B and H shares of the company, which also gave investors a lot of reverie space, the truth is very simple, not to convert the highest price of a shares, into H-shares, but also enjoy a large arbitrage ah.　　Strategist, managing director of Citigroup, a Chinese research director, said at the time that B-shares would be able to repurchase the B-shares by issuing an H-share, and to complete the conversion of the trading market without any change in equity.　　But the idea ended in nothing. "My organization was involved in the release of the H-share in chenming, which is a total loss business for us," he said. We were involved in the project mainly because of its innovation. Although the SFC also gave us the award, but finally did not see the BH Conversion channel open, or very regrettable. "A member of the intermediary who had been involved in the morning-Ming paper listing said here, with a sigh," the plan was also done, but it was not implemented. "It's not hard to understand that if you open the financial statements of a B-share company, it can be said that the vast majority of B-shares are poorly run and cannot meet the listing requirements of the H-share market." Therefore, if the group B can follow the morning-Ming paper, once again on the H-Share distribution road, which is also for more B-shares listed companies to explore the future.