CITIC Securities Rush To H-Share Financing, Expected To Be Listed This Quarter

According to a report a few days ago, citic securities H shares coming to Hong Kong list In addition to being the sponsor and lead underwriter, the investment banks of the four major mainland banks also served as the main members of the underwriting group and the joint account book manager. According to the source, it is estimated that the application for listing H-shares of CITIC Securities will soon be approved by the CSRC, which will be able to catch up with the launch of the second quarter.

　　 Ah stock is expected to become the first listed securities company

On March 23, 2010, CITIC Securities announced that due to major issues being discussed, the company's stock temporarily Suspension of trading It is estimated that the suspension will not exceed 5 working days. Just five working days later, CITIC Securities issued an announcement, saying that the company intends to issue overseas listed foreign shares (H shares) and apply for listing on the main board of the Hong Kong stock exchange, with a par value of RMB 1 per share.

By the end of 2010, CITIC Securities had a total share capital of 9.945 billion shares. Based on this calculation, its H-share issuance scale will not exceed 1.1 billion shares. At the closing price of RMB 1.4 billion, CITIC Securities closed at RMB 1.4 billion. If h-myers and H-shares are listed successfully, they will become the first securities company to be listed internationally.

Industry insiders said that the listing of CITIC Securities in Hong Kong can not only solve the capital problem, but also accelerate the development of international business, laying the foundation for future business expansion. In fact, since this year, many securities companies have been actively seeking capital market financing. For example, Hongyuan securities plans to raise 7 billion yuan, Pacific Securities plans to raise 5 billion yuan, and GF Securities refinances 18 billion yuan, which has been accepted by the CSRC.

According to the performance express of CITIC Securities, in 2010, the operating revenue was 27.426 billion yuan, and the net profit was 10.944 billion yuan, up 24.63% and 21.82% respectively compared with the same period last year.

CITIC Securities said that the offering price was determined according to the situation of domestic and foreign capital markets at the time of issuance and with reference to the valuation level of similar companies in domestic and foreign markets. The issuance method is Hong Kong public offering and international placement, including the United States, Japan and other regions. The fund raised by the company's issuance of H shares will be used for the construction of overseas business platform through supplementary capital, including: 1. Establishing or purchasing overseas research, sales and trading network, including the establishment of international research team, construction of international sales network, development of securities guarantee financial assets and other overseas and cross-border businesses; 2. Development of capital intermediary business, including It includes brokerage business, structured products business, fixed income, foreign exchange and bulk commodity business; 3.

　　 Speed up the pace of internationalization

As the first securities company to try to internationalize, CITIC Securities had planned to issue H shares in Hong Kong as early as 2007, raising about US $3 billion, but failed to do so due to various reasons.

In 2005, CITIC Securities established CITIC Securities (Hong Kong) in Hong Kong and began to expand overseas business. In 2006, it increased the capital of CITIC Securities (Hong Kong) and acquired three subsidiaries of CITIC Capital Market holding company of CITIC Group, and obtained the qualification of securities underwriting, securities brokerage and futures business.

In October 2007, CITIC Securities and Bear Stearns reached a consensus on strategic cooperation and signed a comprehensive strategic cooperation plan. However, Bear Stearns was knocked down by the US subprime mortgage crisis which started in early 2008. In March 2008, Bear Stearns' liquidity deteriorated rapidly due to the run. After that, JP Morgan and Bear Stearns quickly reached an agreement for a full-scale acquisition of $2 per share, and CITIC Securities narrowly escaped.

Since then, CITIC Securities has targeted at the Oriental Credit Union Bank.

In May 2010, CITIC Securities announced that it plans to establish a strategic cooperative relationship with Calgary Oriental Bank. The scope of cooperation includes Shengfu securities, agricultural credit bank securities (USA) and Lyon securities. The cooperation methods include business cooperation, customer resource sharing, joint venture, and strategic alliance.

At the end of last year, CITIC Securities completed the equity transfer of CSCI. The equity transfer is completed in two times, 45% of the equity delivery date is November 15, 2010, and the investment income is about 6.075 billion yuan; the delivery date of 8% equity is December 16, and the investment income is about 1.08 billion yuan. CITIC Securities recorded 7 billion yuan in total. In fact, CITIC Securities is not short of money. Because, accelerating the pace of internationalization is the key to its strategic layout.

In recent years, it is the most important point for China CITIC Securities Company to expand its overseas capital raising business, especially in the overseas securities market.

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