China International Capital Corporation Global Reach and Operations

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China International Capital Corporation (CICC) has a significant global presence, with operations in over 20 countries. They have a strong presence in Asia, with offices in Hong Kong, Singapore, and Seoul.

CICC's global reach allows them to provide a wide range of financial services to clients worldwide. They offer investment banking, securities, and asset management services.

Their global operations are supported by a team of experienced professionals who have a deep understanding of the global markets. This expertise enables them to provide tailored solutions to clients.

CICC's global presence has enabled them to advise on some of the largest and most complex transactions in the world.

Business Operations

China International Capital Corporation (CICC) operates with a strong focus on its business operations. It has a well-established network of branches and subsidiaries across China.

CICC's business operations are supported by a team of experienced professionals. The company has a strong research and analysis capability, which enables it to provide high-quality investment banking services.

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CICC's business operations are diverse, with a wide range of services offered. This includes corporate finance, equity and debt capital markets, mergers and acquisitions, and asset management.

CICC has a strong presence in the Chinese market, with a significant share of the country's investment banking business. The company's business operations are closely tied to the growth of the Chinese economy.

CICC's business operations are guided by a set of core values, including a commitment to excellence and a focus on client needs.

Financial Information

China International Capital Corporation's stock price has fluctuated within a relatively narrow range, with a high of 13.78 and a low of 13.30. The current bid is 13.72, while the offer stands at 13.74.

The stock's open price is 13.58, and the previous close was 13.50. This indicates a slight increase in value.

The company's average trading volume is 38.90 million shares, which is a significant number considering the total shares outstanding is 4.83 billion. The free float is 2.46 billion shares.

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China International Capital Corporation's market capitalization is a substantial 131.26 billion HKD, and its price-to-earnings ratio (TTM) is 14.91. The company's earnings per share (TTM) is 0.9254 HKD.

The company pays an annual dividend of 0.1968 HKD, resulting in an annual dividend yield of 1.43%. The dividend ex-date is November 4, 2024, and the dividend pay-date is December 27, 2024.

Here's a summary of the key financial statistics:

Regional Presence

China International Capital Corporation has a significant presence in the Asia-Pacific region, with offices in key cities such as Hong Kong, Singapore, and Seoul.

They have a strong network of relationships with local investors, corporates, and financial institutions, enabling them to provide tailored advice and solutions to clients.

Their Hong Kong office serves as a major hub for their Asia-Pacific operations, with a team of experienced bankers and advisors who have deep knowledge of the local market.

They have also established a strong presence in the Chinese mainland, with offices in Shanghai and Beijing, allowing them to tap into the country's growing economy.

Their expertise in advising on M&A and equity capital markets transactions has been particularly valuable to clients in the region.

Organizational Structure

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China International Capital Corporation has a complex organizational structure with multiple subsidiaries. China International Capital Corp. (UK) Ltd. is a key subsidiary based in London, UK, founded in 2009.

The company has a global presence with offices in Hong Kong, where CICC US Securities (Hong Kong) Ltd. and China International Capital Corporation (International) Ltd. are based. These subsidiaries provide various financial services, including security brokerage and investment banking.

Here are some key subsidiaries of China International Capital Corporation:

Executive Committee

The Executive Committee is a key part of any organization's structure, and China International Capital Corporation Limited is no exception.

The committee is led by Liang Chen, who serves as the President and is 57 years old, having joined the company on April 9, 2024.

Yi Cheng Xu is the Director of Finance and Chief Financial Officer, bringing 51 years of experience to the role, also joining on April 9, 2024.

Long Cheng is the Chief Technology and Science/Research and Development Officer, a position he's held since February 28, 2021, at the age of 49.

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Jia Xing Zhou is the Compliance Officer, with 53 years of experience and having joined the company on December 27, 2021.

Dong Qing Liang is the Corporate Officer/Principal, the youngest member of the committee at 42 years old, having joined on September 25, 2024.

Here's a brief overview of the Executive Committee members:

Shareholding Structure

The shareholding structure of the company is quite complex, but let's break it down. As of October 31, 2021, Central Huijin Investment Ltd. held a significant 40.17% stake in the company.

Central Huijin Investment Ltd. is the largest shareholder, but there are several other notable investors. HKSCC Nominees Limited, a Hong Kong-based investment firm, held a 30.74% stake in the company.

Another significant shareholder is Haier Group (Qingdao) Financial Holdings Ltd., which owned 8.26% of the company's shares. Alibaba Group Holding Limited and Tencent Holdings Limited also held significant stakes, with 4.49% and 4.48% respectively.

Other notable investors include China National Investment and Guaranty Corporation, Hong Kong Securities Clearing Company Limited, China Reform Investment Co., Ltd., and China Structural Reform Fund Corporation Limited, each holding between 0.32% and 2.64% of the company's shares.

Here's a breakdown of the shareholding structure as of October 31, 2021:

Group Companies:

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China International Capital Corporation Limited has a number of group companies, each with its own unique focus and location.

China International Capital Corp. (UK) Ltd. is a brokerage services provider based in London, UK, and was founded in 2009.

CICC US Securities (Hong Kong) Ltd. is a Chinese company that provides security brokerage services from Hong Kong, Hong Kong.

Here are some of the group companies under China International Capital Corporation Limited:

China International Capital Corporation (International) Ltd. offers a range of financial services, including investment banking, stock trading, and wealth management.

Recent Developments

China International Capital Corporation has seen some significant developments in recent times. The company's equity trading has reportedly seen its best days behind it, according to a statement from China International Capital Corp in September 2024.

In April 2024, the company's FY23 results slightly exceeded expectations, which is a positive sign for investors. However, the company's 3Q23 earnings were disappointing, as reported in November 2023.

The company's international business has been a key area of focus, and a rebound in this sector has led to a re-rating of the company, as noted in April 2023.

History

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CICC was incorporated on July 31, 1995, by China Construction Bank, Morgan Stanley, China National Investment and Guaranty Co Ltd, GIC, and the Mingly Corporation as the first Sino-foreign joint venture investment bank.

Its largest shareholders at the time were China Construction Bank and Morgan Stanley, holding 42.5% and 35% of interests respectively.

CICC established its first overseas subsidiary in Hong Kong in 1997, marking the beginning of its expansion into international markets.

This move allowed CICC to become the first Chinese investment bank conducting securities underwriting business in Hong Kong.

In 1997, CICC completed its first overseas initial public offering project, the IPO of China Mobile on the Hong Kong Stock Exchange, making it the largest IPO in Asia at the time.

China Construction Bank transferred its equity interest to China Jianyin Investment in 2004, which later transferred it to China Central Huijin, a wholly owned subsidiary of China Investment Corporation.

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Morgan Stanley sold its holdings to TPG, KKR, GIC, and Great Eastern in 2010, marking a significant change in the bank's ownership structure.

CICC established its FICC division in 2010, making it one of the earliest investment banks to conduct fixed income business in China.

In 2015, CICC was converted into a joint stock company with limited liability, with Huijin, GIC, and TPG as its top three shareholders.

CICC completed its own IPO on the Hong Kong Stock Exchange in November 2015.

In 2016, CICC acquired China Investment Securities from Central Huijin in an all-share deal.

Tencent, a giant Chinese internet company, acquired a 5% stake in CICC in 2017.

CICC acquired a majority stake in US KraneShares, a leading exchange-traded fund provider, in 2017.

Recent Developments

In the world of finance, it's essential to stay up-to-date on recent developments.

China International Capital Corp had a significant announcement on September 9, 2024, stating that the best days of equity trading are behind us.

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Their FY23 results slightly exceeded expectations in April 2024, which was a welcome surprise.

However, their 3Q23 earnings missed estimates, which was a disappointing outcome on November 1, 2023.

China International Capital Corp also made a notable prediction on April 17, 2023, stating that the company is due for a re-rating due to the rebound in their international business.

Frequently Asked Questions

Is CICC an investment bank?

Yes, CICC is a leading global investment bank. Founded in 1995, it has grown to become a prominent player in the industry while maintaining its Chinese heritage.

Who is the owner of CICC?

CICC is a partially state-owned company, meaning the Chinese government has a stake in its ownership. However, the exact percentage of state ownership is not publicly disclosed.

Carlos Bartoletti

Writer

Carlos Bartoletti is a seasoned writer with a keen interest in exploring the intricacies of modern work life. With a strong background in research and analysis, Carlos crafts informative and engaging content that resonates with readers. His writing expertise spans a range of topics, with a particular focus on professional development and industry trends.

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