The new survival rule of UBS Cai Hongping

As the market slumps and investor confidence is missing, the bull-run Chinese private-sector IPO King continues to make billionaires. New list: Wang Liu Zhongtian, chairman of China Zhong Wang, after two years of carnival, the cold snap in China's capital markets is making more and more investment bankers feel cold – even those who have been stars, May 8, after 2 years and 3 months of work, senior banker she from Merrill Lynch.　　Before that, a number of foreign investment banks such as Citigroup and Goldman Sachs had slashed their investment banking teams in China because of falling trading. Despite the same layoffs, the situation seems not so bad for Cai Hongping: "The market is better than expected and UBS will be the first in China's equity capital market this year." "This assertion is a bit arrogant in the middle of the 2009, but the confidence of the Swiss bank's Asian investment banker is not unfounded," he said.　　On the second day of the interview with global entrepreneur, a total of HK $9.494 billion in China loyal to the Hong Kong Main board of the official listing transactions, a 2009-year global IPO fund the highest record, and its underwriters are UBS, JPMorgan Chase and Citic Securities three, of which UBS accounted for the highest share. Even for Cai Hongping, who had repeatedly sent private entrepreneurs to the rich club, the story of the rich-world IPO, which had been on the verge of drying up, still makes sense-though it slipped through its IPO date, But Liu Zhongtian, chairman of 4 billion shares of China's loyal and prosperous shares, is still the new richest man in mainland China.　　This will be the fourth year for UBS to occupy the top spot in China's stock market, if everything else is Cai Hongping. After the unprecedented collapse of financial markets, it was a much-needed victory for bankers.　　In the past year, investment banks, once the elite spokesmen, have been collectively hit by the demise of Bear Stearns and Lehman Brothers, Goldman Sachs and Morgan Stanley from independent investment banks to financial holding companies, and Citigroup, which has long been the largest financial institution in the United States, has been on the brink of a huge loss for investment banking. UBS is also in bad shape, despite the continued profitability of its wealth and asset management business, but its investment banking division lost 19.7 billion Swiss francs in its overall performance in 2008, the biggest loss record ever recorded by Swiss companies.　　In the first quarter of this year's financial report, which was released by UBS on May 5, the situation remained in remission, with a pre-tax loss of 3.162 billion Swiss francs in its investment banking division. It has also placed a high expectation on its one-show China business, just two months ago, when Cai Hongping, who was in charge of UBS's China operations, was promoted to the chairmanship of the Asian Investment banking division. In such a tough market situation, Cai Hongping still thinks investment banking is a dream industry when asked how it will continue to be, "This is the year of the restructuring of the global industry, the end of the financial turmoil, and the hope of the new investment bank.Years。 "Big deal even in conservative estimates, the IPO of China's Zhong-Wang remains the highest in the first half of the year. Prior to this year's global stock market there was no initial public offering of more than $1 billion trillion of companies, only the New York Stock Exchange listed on the United States to raise funds to 828 million U.S. dollars.　　In such a depressed market environment, this can certainly be seen as a needle tonic. As the world's third-ranked industrial aluminum product manufacturer, Zhong Wang Group's listing plan began a year ago. Later, as the stock market plummeted, the deal had to be postponed. "The market is deteriorating, people have no intention to see the company, but only to see how the market." Cai Hongping recalls.　　In this case, if you want to let Zhong Wang go on the market, you have to choose an unusual way. The first is what kind of story to sell. Initially, the IPO was positioned as "China's largest supplier of industrial aluminium", but the concept was overturned and replaced by "China's largest supplier of transportation materials" before it was ready to hear information this May.　　The change cleverly combines loyalty with a $4 trillion trillion economic stimulus package from a common industrial enterprise with China. Founded in 1993, Zhong-Wang initially to architectural aluminum profile, after entering the industrial aluminum market, in 2004, Zhong-Wang began to provide products for the transport industry, a large number of customers are the Ministry of Railways under the vehicle equipment manufacturers. By the year 2008, the business income of Zhong Wang was as high as $11.26 billion, with more than 40% of the traffic related to the transportation sector. In the $4 trillion stimulus package, about one-third of the spending is expected to be spent on projects related to railways, highways and power grids.　　This has convinced most investors that the loyalty of China's southern car and North vehicle group to manufacture train compartments and rail components will get more business from it. More importantly, the positioning of Zhong-Wang in the field of transportation has gained higher pricing space and price/earnings expectations. In August 2008, China Southern Car in Shanghai and Hong Kong listed in a a+h way, a total of 1.57 billion U.S. dollars to raise money, P/E is about 15 times times. In another railway concept stock, the price-earnings ratio was 25 times times more than expected in March 2008. In such a frame of reference, the price-earnings ratio of Zhong-Wang is set at a rate of 10 times to 14 times times, which is quite tempting, and the average industrial profile firm has a ratio of only 5-6 times. "No one has rejected this concept. "The market has formed a consensus, and that is the value of such companies," Cai Hongping said. "Even so, in the extremely volatile capital markets, there is still more reason for investors to take out real money." After the introduction of the concept of transport materials, another important strategic change for Zhong-Wang listing is road design.　　In the past, mainland enterprises in Hong Kong usually more value Hong Kong, Europe and the United States, and even the Middle East overseas markets, in the domestic roadshow is generally very simple, and the loyal Wang listed roadshow is the opposite: started in Shanghai, the end of overseas. This is mainly out ofLoyal to the degree of familiarity, in Cai Hongping's view, as a Chinese company, local investors have a higher degree of understanding of Zhong Wang. An important local investment force is the QDII fund, this year, the performance of a number of QDII funds has become more eye-catching, according to a Wanguo report, the QDII fund in the first quarter significantly increased the allocation of the Hong Kong market, and mainly increased the financial and industrial areas of overweight.　　It is understood that in the process of Zhong-Wang listing, long-term quality funds as the main body of the institutional investors to become the main purchase, and in the previous transactions, this phenomenon is rare. Not only that, the normal market conditions to continue to two weeks or so of the road show, was slashed to eight days, this is the IPO of Zhong-Wang to seize the fleeting market recovery period. "I have been waiting for this opportunity for a year. "Cai Hongping said," This is not a regular issue, not well-organized. "In the view of market analysts, as the rebound in the Hong Kong stock market has slowed, the IPO performance may be difficult to reproduce this year, and in the course of its issuance, the timely price reduction is also a key reason for investors to approve." During the placement of Chung-mong, the initial price per share was set at HK $6.8-8.8, and in the past a similar company's IPO, the final prices were usually set at the top end of the IPO.　　However, due to market volatility and the impact of influenza A HIN1, the public subscription is only 70%, the final share price has to be set at HK $7 low.　　But for Yuzhongwang, the result is still satisfactory, according to the person close to the deal, as the dust settles, Mr Wang, the Executive Director and Vice president of the company, is even directly authorized to Cai Hongping: In UBS, JPMorgan Chase and Citic Securities three underwriters, UBS is fully responsible for the distribution of economic interests, and Zhong-Wang does not intervene too much. Battle effectiveness There is no doubt that the past year has been an unprecedented panic in the history of investment banking. The nightmare of capital city seems endless: The collapse of Bear Stearns in March 2008, the arrival of the subprime crisis, and the collapse of Lehman Brothers in September marked a full-blown financial crisis, and at the end of last year AIG was forced to admit the reality of the recession. "It's not a normal season.　　"Even for the more than 10-year Cai Hongping in the investment banking sector, the pressure is far greater than ever before," he said. Cai Hongping never took part in IPO pricing during the fiery period of Chinese companies ' IPO in 2006 and 2007, but from last year he began Duzhan every project himself.　　Cai Hongping had flown to San Francisco for a one-hour pricing meeting last March, when food and beverage companies went on sale in China's booming market. It was just before the collapse of Bear Stearns that the US market panicked, and the business involving Taiwan wanted want would have to retire from Singapore and then go back to the market, a slightly more complicated process. According to people involved in the deal, another underwriter initially held a conservative stance, preferring to set the P/E ratio at 15-16 times, but by this calculationThe size of the financing is not enough to repay the prosperous when the withdrawal of the bank loans owed by enterprises do not accept this price.　　In the end, under the coordination of UBS, the IPO price of Wang-Wang was finalized at 18 times times P/E and successfully listed. It is undeniable that Chua's renewed move to play "key Mr" in the deal has brought more confidence to his investment banking team. "He was in the evening with the client after dinner, come back to accompany the staff to stay up late overtime, but also like us, only sleep four hours."　　"This is crucial to morale in a depressed market," says a UBS employee. UBS still topped China's investment banking business with $83 million trillion in 2008, according to Dealogic, a record that stems in part from the timely strategic adjustment of UBS. In the past, UBS's investment banking operations in China have focused more on underwriting, but since last year, Cai Hongping's bankers have had to introduce shares, bonds and mergers and acquisitions of three of products as they meet clients. At the same time, a "pluralistic thinking as the key words of the internal training began in UBS quickly launched." "Since June, the market has been visibly out of touch. can only be profitable through new products.　　"said one investment banker. If studied carefully, it is not difficult to find that the Chinese companies in the recent series of overseas mergers and acquisitions are no lack of UBS's figure: in May last year, in a case in which China Merchants Bank acquired the wing Lung Bank of Hong Kong, UBS acted as financial advisor to the wing Lung Wood family, and in September, Mr. Buffett took over as BYD's financial advisor in the case of BYD, and by the end of this February , UBS also appeared in the Minmetals Group's takeover of the Australian Resources Company, OZ Minerals.　　In 2008, UBS has completed 73 deals in Asia-Pacific markets outside Japan, worth as much as $80.7 billion and 20 more than the second-highest JPMorgan Chase. In addition, UBS has begun to seek more say in its traditionally not-leading bond market.　　Since the beginning of this year, UBS Securities has been the Beijing gold corner issued 1.97 billion yuan debt financing, the Chinese gold group issued debt 2.07 billion yuan. In a tougher market environment, the brand advantages of UBS and Cai Hongping are also beginning to emerge.　　One thing to note is that Cai Hongping's team did not intervene from the outset in a number of UBS underwriting projects, with Soho China in 2007 and special steps in 2008, when UBS was killed halfway through the underwriting group. That is partly thanks to Cai Hongping's long years of good relations with Chinese private entrepreneurs and their trust, which has allowed UBS to grow intensively in a client. As early as 2001, Cai Hongping in the Hundred-Fu service in search of the embodiment of "Chinese manufacturing upgrade" in the process of discovering BYD; in November 2007, BYD's mobile phone business was listed in Hong Kong, UBS as its underwriter, 2008 BYD returned a shares, its sponsor is UBS's joint venture in China UBS Securities , and in the following, UBS as a financial advisor to BYD's sharesSold to Buffett. Unlike the listing characteristics of large state-owned enterprises, private entrepreneurs tend to pay more attention to the commercial value that investment banks bring, while Cai Hongping is quite adept at telling such stories. In fact, in many of the UBS underwriting projects, the IPO price is more than peers.　　Prior to the listing in 2007, the company's two underwriters differed significantly on the firm's earnings ratio: UBS was expected to be 17 to 23 times times, while the other investment bank had a price-to-earnings ratio of 11 to 15 times times. Also cannot ignore is CAI's diligence, "I have nothing to rest."　　"Until today, he insisted on doing 30 push-ups a day, 20 times in situ touch high jump, but in 2008, he said he still committed stomach and shoulder inflammation."　　Man's business There is no doubt that, in the past few years, with the rise of Chinese companies in capital markets, Cai Hongping is one of the most "richest" bankers: Zhang Yin, yang, and freshly baked Liu Zhongtian have all been pushed to the top of the rich list. Correspondingly, Cai Hongping also frequently into people's field of vision, and was dubbed "the richest Yuan dong," the richest man behind the scenes of the High-profile title. However, in his opinion, these are not important, but also let him care about his own led by the Swiss syndicate in the equity capital market tough strength: "People do not dare to do, we do it to explain the strength of a bank."　　For himself, Cai Hongping is more willing to be likened to the well-trained conductor of the symphony Orchestra--as long as the tune is Dingzhun, the music can be played. In fact, in the past year, the other big thing that Cai Hongping has focused on is a new effort to temper UBS's investment banking team. After the collapse of Lehman Brothers last September, Cai Hongping quickly found several former Lehman Brothers oil and gas bankers, inviting them to join UBS, four of whom were formally admitted in October.　　To appease them, Cai talked to the group the day after his work. In addition, Cai Hongping also personally recovered from the Shenzhen holding company UBS's senior staff Zhanghua as UBS Investment Bank in China deputy general manager. Before that, Zhang, who had been an analyst for many years at UBS, left Zhenri Ban, head of the China Research Division of the investment bank. "Cai's overall enthusiasm for the work, his views on the industry, you are not impressed is more difficult." "Later, when it comes to the reasons for regression, Zhang will be a considerable part of the reason due to Cai Hongping," his phone you do not answer is very difficult. "Even so, the region is suffering from layoffs as a result of huge losses in UBS's global investment banking sector, but the impact on the Chinese team is minimal." "It certainly has a lot to do with Cai Hongping," he said. A former UBS employee said.　　The stable team was seen by Cai Hongping as a key to UBS's ability to maintain its market position. To a large extent, the newly completed IPO has brought more confidence to UBS. "The economy has come to the bottom, will appear zigzag development, at the bottom of the concussion." Cai has judged the current economic situation and encouraged people to return to the housing market and the stock market. andOn its sales list, the next domestic company to be listed in Hong Kong will be the Beijing Gold corner stake. On its official website, Bbmg described himself as "one of the country's largest building materials manufacturers, leading property developers in Beijing and large property investment and management companies." "But in the face of this year's questioning of the real estate industry, Cai Hongping said:" The golden Corner should focus on the concept of cement. "In the context of the stimulus package, it is not yet known whether this very similar story will appeal to investors again." But Cai Hongping believes that even in a downturn, those who live in the growth sector and can take the lead in the industry remain valuable. "Enterprises are talking about technology and cost. To get back to basics, don't be complicated. "Cai Hongping said.