What is HSBC's attitude towards the Ping an event?

Financial Weekly reporter Wang Jiangtao/Finishing Time: June 15, 2009 meeting Host: China Ping An Investor relations (IR) head of Kinscholiang meeting guests: General manager of Ping An, Cheung, president of Ping An bank Richard Jackson, China Ping An asset management (Hong Kong) Managing director of Liu Shan School　　Q: What is HSBC's attitude towards the Ping an event?　　A: The deal was unanimously approved by the Board of directors, including 3 HSBC directors, HSBC in support of the deal and several times in public to hold peace.　　Q: board seats, accounting treatment, the new bridge shares lifted, the issue of additional H-shares related to the reduction of state-owned shares, how to deal with?　　A: Board seat: After the transaction is completed, nominate 3 directors, 1 independent directors, and nominate 3 more in the next 18 months. Accounting Processing: The completion process also requires approval, the need for procedures. The number of shares held at different points determines the accounting process. After the completion, according to the law of equity treatment.　　Will not be a table.　　New bridge shares are restricted: we are strategic investors, we do not need to buy and sell in Level 2 market, will not affect our delivery. H-Share swap arrangement: The process of future approval, in consultation with the regulatory authorities on all relevant provisions.　　The new bridge is a strategic investor and a single shareholder is directed to issue additional shares.　　What account does the Q:20 period reserve come from? Difference between reserve acquisition and capital Purchase. A: It is a traditional account and holds 4.6% of the shares. Future participation in directional additional, using the same account funds. It is estimated that the account reserve will continue to grow in the next 50 years.　　These account customers are relatively young and contain some free capital, because liabilities are a fixed cost of debt, profit and loss into the company profit statement account.　　Future deep development of profits, equity law accounting treatment into investment income, as long as the deep development of profit stability and development, the balance of assets and liabilities will have a good return.　　Q: How much is the average cost of ping an life?　　A: The current average cost is more than 18 yuan. The use of traditional account insurance funds does not affect solvency.　　If the profits enter the report, the future long-term stable rise process, the return over the cost of debt, can improve solvency. The stake in the new bridge may be cash or stock exchange. If it is a swap, for the group, the use of the group's surplus capital will not affect the solvency of the subsidiary. In cash, less than half of the surplus capital is occupied.　　After last year's increase, the group also has more than 20 billion of the surplus capital, the subsidiary capital is relatively abundant.　　How to transfer the q:3.94% equity? Is it necessarily 585 million? How to treat the synergy between Ping an bank and deep development? The a:3.94% section, which is an investment under a traditional account, has no trading restrictions. For the overall transaction, it involves the uncertainty of the time, and we want to ensure that no point is more than 30%.　　The possible arrangement is for the targeted issue to push for the subscription limit. Synergy: 16 New cities, Ping an bank notCovered, ping An life insurance has a good customer base, many cross-selling opportunities. Infrastructure: sharing, such as it. Areas of cooperation: credit card repayment, cooperation areas need detailed agreement, to take care of legal and regulatory requirements.　　Take care of the business interests of both parties. H-Share swap: There are no restrictions after the exchange, can be lifted. New bridge optimistic about peace, there is the right to choose shares.　　We must be finished by the end of 2010, if the other party has no choice, automatic decision for cash payment scheme.　　Q: Does the integration of banking business continue to increase holdings in deep development? A: There are no other plans, the future model is to continue to have ping an bank, continue to operate, develop the network, at the same time with the deep development of a close cooperative relationship. Bullish on deep development management to support development. After injecting capital, deep development has better development space. In customer resources, day-to-day operations and other aspects, mutual support and sharing, sales and service promotion.　　There are no further plans at this time.　　Q: is the replacement purchase only to the new bridge? After the cash acquisition, the group still has 13 billion capital, the next step is refinancing demand?　　A: The additional for one-way, only to the new bridge, the new bridge is a single strategic investors. Last year, the capital injection of production and life insurance, more adequate. Most of the subsidiaries are not issued debt, the issuance of debt is lower, if the future business development faster, lower interest rates, can be through the issuance of debt replenishment capital, conducive to optimizing the capital structure.　　There is no need to worry about capital adequacy and solvency. Q: Synergy, how to avoid peer competition.　　How does the resources of Shenzhen overlap? A: At present we are satisfied with the development of Ping an bank. Our group has done the acquisition and merger of Ping An bank and deep firm. We will develop ping an bank according to the original strategy. Deep development will continue to develop. The two banks have different positions and do have some overlap. But deep development has done well in the area of trade finance, especially in the field of supply-chain financing.　　Ping An Bank is committed to cross sales to group customers. The deal has just begun, and there are a lot of approvals, and both banks are going to be fully developed during this period. After the end of the first phase, we began to seek areas for cooperation. Where both banks have outlets, find areas of cooperation and provide better service to customers.　　such as credit card repayment, ATM machine use.　　Q: What is the order of approval procedures? What is the progress of the approval of the fund licence under Ping An trust?　　A: The competent authorities, the SFC and the CIRC, the SSE, the Shenzhen Securities and Futures Commission. The Shenzhen municipal government will not participate in the approval. Shenzhen municipal government is one of ping an shareholders, about 10% of the shareholding, it participates in shareholder voting, in addition to no other approval chain. Ping An and Dahua to apply for a fund licence, the opening and approval is still in progress.