CICC’s scale and reach within mainland China, Hong Kong and Macau are unrivalled, making it Asiamoney’s best securities house in the Greater Bay Area once again.
The Chinese investment bank – which was created in 1995 as a joint venture between China Construction Bank and Morgan Stanley – had a tough time in 2022 as deal flow slowed across asset classes in Hong Kong. However, CICC knew it was critical to remain close to clients and to help them as best as possible with their financing needs.
CICC worked on 28 IPOs in Hong Kong in 2022, including chunky deals for Tianqi Lithium and Sunshine Insurance Group, versus 33 IPOs in 2021. It ranked second among Hong Kong IPO bookrunners last year, behind Huatai Financial Holdings, falling from first place in 2021, according to Dealogic.
When it came to GBA clients specifically, CICC worked on several A-share listings – worth a collective Rmb41.9 billion ($6 billion) – and marquee Hong Kong deals. The A-share deals included a Rmb2.75 billion IPO on the Science and Technology Innovation Board for chip firm Shenzhen Zhongke Lanxun Technology Co, and a non-public A-share offering for semiconductor group TCL Technology.
During Asiamoney’s awards period, CICC ranked second in the A-share ECM league table, with credits for $20.8 billion and a market share of close to 13%, according to Dealogic. Citic Securities, which had credits for $29.8 billion and a 19% market share, took first place.
In debt capital markets, CICC worked with more than 60 GBA clients to tap both the domestic and offshore markets. This included the first Belt and Road-focused science and technology innovation bond for Guangzhou Port Co as well as the Shenzhen government’s offshore renminbi bonds.
Last year, CICC moved all of its offshore business to CICC International, its subsidiary in Hong Kong, showing its commitment to both Hong Kong and onshore China, including the GBA.
Another core part of CICC’s GBA franchise is its asset management business, which had close to Rmb100 billion in assets at the end of 2022. CICC added nine new employees to its GBA asset management business last year, bringing the total headcount to 60. Within the asset management business, CICC differentiates itself from the competition with its product platform, its international network and the calibre of its investment and research teams.
CICC Capital’s GBA team set up a Shenzhen new economy fund in 2022 – worth nearly Rmb1 billion – to meet the funding needs of early-stage startups. Within the private equity business, CICC has registered several funds in Guangdong and invested in numerous projects in sectors such as medical health and technology.
Finally, an important part of CICC’s GBA business is wealth management. CICC has more than 3,800 wealth advisers who collaborate extensively with other parts of the firm, including the equities team and prime brokerage, to provide a one-stop solution for wealthy clients. That strategy has helped CICC to stay ahead and to understand clients’ needs better than others.