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The CICC: Going Upscale

About the CICC

China International Capital Corp. Ltd. (CICC) was the first Chinese foreign-securities firm (joint venture). It was incorporated in June 1995 by the former China Construction Bank, Morgan Stanley International

Corp., China National Investment and Guaranty Co. Ltd., the Government of Singapore Investment Corp., and the Mingly Holdings Ltd. From the outset, CICC has been the leader in the Chinese securities industry.

After its reorganization, China Construction Bank passed its stake in CICC to the China Jianyin Investment Co. Ltd., who in August 2010 relinquished its entire 43.35 percent stake in CICC to the Central Huijin Investment Co. Ltd. (the controlling shareholder of CICC). In December 2010, Morgan Stanley transferred its entire 34.30 percent stake in CICC to TPG Asia V Delaware LP, KKR Institutions Investments LP, Great Eastern Life Assurance Co. Ltd., and the Government of Singapore Investment Corp. CICC created its own wholly owned subsidiaries as follows:

- CICC (Hong Kong): created in September 1997, in Hong Kong, with a registered capital of HKD 39 million

- CICC-JIA CHENG Investment Management Co. Ltd.: created in October 2007, in Beijing, with a registered capital of CNY 50 million, and with direct investment as its main business activity

- CICC (Hong Kong) then created the following wholly owned subsidiaries of its own:

- CICC (HK) Securities Ltd.: created in March 1998, in Hong Kong, who later created its own wholly owned CICC US in August 2005, in the United States

- CICC Singapore: created in July 2008, in Singapore, with securities-related activities

- CICC UK: created in August 2009, in the United Kingdom, with securities-related activities

- CICC (HK) Futures: created in August 2010, in Hong Kong, with futures trading

As of December 31,2010, CICC had total assets of CNY 33.9 billion and a realized revenue of CNY 5.56 billion. This included a net income of CNY 109 million on average (among all business offices) from securities trading and brokerage services (ranking first in the industry). It also had a net income of CNY 2.466 billion from underwriting, sponsorship, M&A, and other financial advisory services (ranking first in the industry). The funds (principal amount) under its management totaled CNY 23.037 billion, making CICC a runner-up after CITIC Securities. By the end of 2010, CICC underwrote stocks, bonds, and debentures in an aggregate amount of CNY 137.6 billion (ranking second after CITIC Securities) and underwrote CNY 104.7 billion as lead underwriter (ranking first). The company realized a profit of CNY 1.22 billion.

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