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Appeal to Upscale Clients

CICC was of "noble lineage" at birth. Back then, several large international investment banks kept the secret to success in the investment banking industry. For CICC, its parentage enabled it to learn from the giant Morgan Stanley. Since its incorporation, CICC has kept growing at a rapid speed. By building upon expanding business activities, constant improvement and innovation of products and services, as well as outstanding business performance, CICC stands in a leading position in the Chinese investment banking and enjoys a good reputation in the global capital market. CICC has successfully accomplished many milestone projects in the capital market, which have had a profound influence on the Chinese investment banking industry.

CICC almost dominates the overseas issuance projects of Chinese government-owned companies and has an amazing underwriting record. Since 1997, when large Chinese government-owned companies started to appear in the international capital market, CICC has remained on the top in terms of cumulative totals of IPO underwriting amount in Asia (except Japan), overseas IPO underwriting amount, and overseas financing in general.

In October 1997, CICC helped China Telecom (Hong Kong) go public in New York and Hong Kong in the capacity of joint global coordinator, bookrunner, lead underwriter, and sponsor. After that, CICC promoted successful international flotation of China Unicom, PetroChina, Sinopec, and many other large Chinese government-owned companies. It became the main Chinese facilitator, helping Chinese companies in overseas finance as an irreplaceable intermediary between Chinese companies and the international capital market.

In 1999, CICC helped China International Trade Co. go public on the Chinese A-share market. After that, CICC underwrote the A-share IPOs of Baosteel, Sinopc, China Merchants Bank, China Unicom, and other large government-owned companies on the Chinese stock market. Its "noble lineage" is not the only quality that dims the light of other brokers. CICC also has superior investment banking skills and a management philosophy that other brokers envy.

In recent years, CICC obtained several big IPO underwriting contracts (e.g., China Construction Bank, China Shenhua, and PetroChina). Meanwhile, management has been working on internal structural adjustment in the hope of becoming a multi-business securities firm that participates in a complete range of activities. CICC had previously served institutional investors until 2007, when it started to offer services to individuals after seeing the fast-growing demand of asset management services in the Chinese market. Committed to providing upscale customers in the Chinese mainland a market with professional investment services of international standards, CICC has made available to domestic investors securities trading, brokerage services, and investment advisory services at its Beijing, Shanghai, and Shenzhen business offices. It also offers Hong Kong securities investment advice and other services via CICC (HK).

As the first Chinese foreign-securities firm (joint venture) incorporated with special approval, CICC is undergoing a transformation in an attempt to make use of its noble legacy and expand its market share in the upscale market. It also aims to achieve a balanced growth by making an effort in the downscale market.

Lessons

CICC has superior investment banking technical skills, management philosophy, international capital market experience, and an extensive global support network. This gives CICC a competitive edge over other Chinese mainland securities brokers. The lessons to learn from CICC are as follows:

- Local presence is as important as a global vision. A unique international perspective and shareholder background enables CICC to gain real-world experience in international capital markets and build an extensive global support network. To make the most of such advantages, CICC must adapt to the changes in the market and focus on the needs of customers. China continues to enjoy economic growth at a fast pace despite a global recession. However, it faces a great challenge in industrial upgrading and developmental transformation, which could bring along great opportunities in the Chinese capital market and a huge potential demand for securities services. Therefore, CICC must focus on the great Chinese market and make the most of its strengths for a successful business transformation, as well as further and faster business growth.

- A great team of professionals continues to be essential. CICC has brought together a group of Chinese and international professionals that have professional ethics as well as outstanding business skill sets. They are experienced and have been growing with the Chinese capital market. CICC's team of professionals is the hope for future growth and the builders and champions of the CICC brand.

 
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