Citic Securities to underwrite or raise HK $20 billion

Citic Securities (600030.SH) innovation on the road.　　Following the April 13 issue of CITIC Securities provisional shareholder meeting through the issuance of the H-shares of the motion, the Hong Kong media recently reported that CITIC has finalized IPO underwriters, all for domestic investment bank.　　The news said Citic Securities IPO in Hong Kong will be jointly underwritten by CITIC Securities International, its Hongkong subsidiary and Bank of China International, Bank International and Xinda, and there is no foreign investment bank in the underwriting group. Although many commentators, each holding their own opinions, but the financial weekly from a large domestic brokerage investment banking department in charge of the understanding, "Citic Securities is intended to the long-term, BOC International, Jian Yin International, the letter Tatsu is a major Citic securities potential customers, many future cooperation opportunities." "Citic and underwriters" benefit swaps, the world is all for the benefit of shoving, the world is all for the benefit.　　Citic Securities as the first domestic listing of a securities company, is a veritable Chinese securities industry leader, more familiar with this way, the choice of Silver International, build Silver International and the letter to Hong Kong underwriting is one example. According to the announcement, Citic Securities issued in Hong Kong, the number of H-shares to be issued not more than 10% of the total shares issued after the issuance of the company, and the bookkeeping manager does not exceed the above issued the number of H-share shares of 15% of the excess placement rights.　　CICC's research department calculates that, if successfully carried out, the number of shares issued by Citic Securities can reach up to 1.292 billion shares, including 187 million shares of excess placements. As the listed financial stocks, in addition to the Citic Bank (601998.SH) A shares than the H shares have a premium, other bank insurance companies are a shares than H-shares discount, most discount margin of more than two digits, so Citic Securities in Hong Kong IPO is expected to surpass its a-share current price. National Securities and Securities industry researcher Song Jian believes that if the timing of CITIC Securities issue, may raise about 18 billion-20 billion Hong Kong dollars. Nearly 20 billion of the fund-raising, no matter to which investment banks, is a rare benefit.　　However, Citic Securities in its subsidiary Citic Securities International, the election of BOC International, CCB International and the joint underwriting, in addition to avoid foreign investment banks to their commercial secrets of prying, there is a more profound reason.　　Above securities bankers told the Financial weekly reporter, Citic Securities selected BOC International, Bank of China and the letter Tatsu, it is clear that in order to maintain long-term customer relationship with them, after all, they have a lot of opportunities for future financing. In the case of BOC International, BOC International is a wholly-owned subsidiary investment Bank of Bank of China (601988.SH), subject to the requirements of capital adequacy ratio, equity financing or bond financing has become commonplace. For the same reason, as well as CCB International, CCB International is a wholly-owned subsidiary investment Bank of Construction Bank (601939.SH), representing the bank to carry out diversified investment banking business.　　Although the construction bank has clearly indicated no refinancing plan this year, as a financial enterprise, there are still many opportunities for refinancing in future. And the situation is more complex, Xinda Securities are still not listed, and Fidelity Asset Management under the happiness of life, fidelityProperty insurance, Xinda Futures, Xinda real estate and so on, the nature of the cooperation with CITIC. There are also brokers said: "The Citic Securities H-share issue did not choose other domestic investment banks, one of the other investment banks H-share issuance experience is not rich, the second is Citic Securities and other investment banks is a competitive relationship, if the project to hand, but to their own ranking disadvantage."　　"Citic Securities Hong Kong, the performance of the National Securities Song Jian Statistics, the domestic financial industry, 8 listed banks, 3 listed companies are A+H listed, and all listed securities companies, are only listed in a shares." Citic Securities as a leading domestic securities industry, regardless of brokerage business, investment bank business, capital Management business or innovative business, in the domestic industry are the most. Citic Securities 9.9 billion of the total and 67.6 billion of the net assets of the securities company to stabilize the first, the scale of net assets than the second-ranked Haitong securities more than 52%, the total market capitalisation than the second largest GF securities more than 35%.　　IPO in Hong Kong is also in line with Citic Securities in the domestic securities industry position. But in the Hong Kong market, the performance of Citic Securities and its domestic leading brokerage position is very inconsistent. 2009 Annual report disclosed that in the 2009 Hong Kong Equity underwriting market, UBS Securities and Morgan Stanley ahead of the market share of 17% and 14% respectively, the concentration of further increase.　　CITIC Securities international market share of only 2.1%, ranked 13th. Citic Securities added $400 million to CITIC Securities international in 2010 to boost its business capabilities.　　In addition, Citic Securities earlier announced the proposed increase in the amount of HK $3.109 billion, CITIC Securities international registered capital will reach about 6.85 billion. However, Citic Securities seemingly abundant cash flow, in the various business scale expansion of the situation, Citic Securities existing capital scale is still hard to be stretched.　　Although 2010 reported currency capital of 64.719 billion yuan, but deducted the customer funds deposit 46.964 billion yuan, Citic Securities the actual available funds only 17.756 billion yuan. The two convergence of direct investment, CITIC Securities has been idle funds are basically depleted. At the end of the 3 quarter of last year, Citic Securities announced the expansion of financing and margin business limit of 20 billion yuan, the direct investment company Jinshi invested more than 4 billion registered capital, there are 1.2 billion yuan has been the board of directors through to inject.　　The two convergence of direct investment has taken up 21.2 billion of the amount of money, given the size of the available funds of 17.756 billion yuan, Citic Securities money is largely spent overseas expansion. China Merchants Securities and Securities industry researcher Hongjin that the Citic Securities issued in Hong Kong, on the one hand can raise the necessary funds, on the other hand as the first listed domestic brokerage, through roadshow promotion, the issue of new shares in the international market also carried out a brand publicity. Responsible Editor: NF018