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  • Fixed Income and Structured Financing

    The Company has built up a most comprehensive debt business platform in China that covers all domestic bond products. In 2010, the Company made remarkable achievements in underwriting services in a variety of segments, including corporate bonds, mid-term notes, commercial paper, commercial bank subordinated debts, government-backed agency bonds, financial bonds issued by auto financial companies, subordinated term debts issued Rank by insurance companies, and Dim Sum bonds in Hong Kong, etc. The Company completed 24 bond deals as the lead underwriter, with an amount of RMB 75.998 billion, ranking the first among the peers in both the size and number of bond lead underwriting deals.

    The Company¡¯s bond business stood out among banks and securities houses due to its tremendous underwriting achievement, abundant innovative accomplishments and extraordinary profitability. It acted as the lead underwriter of a number of large-size bond issues, including the RMB 55 billion Huijin bond and the RMB 22 billion subordinated bond of the Industrial and Commercial Bank. The Company¡¯s bond business has also played an important role in the development of the Chinese capital markets and in product innovation.The Company closed the deal of the financial bond issued by GMAC-SAIC Automotive Finance as its lead underwriter in September 2010, which was the first financial bond issued by an auto financial company in China, opening the door for debt financing by the local auto financial companies. The Company closed the deal with Taikang Life Insurance Co., Ltd. in November 2010 for its RMB 4 billion subordinated term debt as the lead underwriter, which subordinated debt product was the first one in its kind using market-based pricing, issued by an insurer and whose lead underwriter was a securities company. That bond was also a first product that was custodied at the China Securities Depository and Clearing Corporation (SD&C) and transferred at the fixed income platform of Shanghai Stock Exchange, expanding the scope of bond custody and transfer at the SD&C and the exchange as being the first financial institution bond custodied and transferred at the exchange. And the 10-year mid-term note of CITIC Group, in which deal the Company acted as the lead underwriter, contributed to the complement of yield curves in the mid-term notes market. The Company was also in 2010 qualified as one of the first credit risk mitigation instruments dealers, dealers and warrant issuers, thus became one of the two securities companies that were granted the three qualifications at the same time.

    While maintaining its leading position in the traditional businesses, the Company is vigorously exploring overseas debt business and the offshore market, and has served more than 500 large enterprises all over the world. Following the Hong Kong RMB FRN project of HSBC in 2009, the Company successfully underwrote the Hong Kong RMB bonds of China Merchants Hong Kong in 2010. Thanks to its excellent performance in bond business in 2009, the Company was awarded the honor of the ¡°Best Bond House in China 2010¡± by The Asset, the ¡°Best Bond House in China 2010¡± by the Finance Asia, and the ¡°Best Bond Investment Bank 2010¡± by the Securities Times.

    As a window of innovations in asset securitization and structured financial products, the structured financing business is aimed at offering diversified structured financial services to the investors and borrowers, on top of the traditional financial instruments. The current primary service areas include: credit asset securitization, corporate asset securitization, private placement structured financing and private placement structured investment, etc.

    The Company is at a leading position in the asset securitization business. In the total 17 deals of credit asset securitization deals so far in China, CITIC Securities acted as the sole lead underwriter in 5 deals, ranking the first in the market in the number of deals; among the RMB 58.27 billion prioritized issue of the credit asset securitization products, CITIC Securities acted as the sole lead underwriter for 35.44% of it, ranking the first in the market in terms of underwriting amount and even claimed a market share as high as 66% in 2008. The Company was the first securities house that took on the asset securitization project of distressful loans of commercial banks, and also the first in China that took on securitization of personal auto loans. Meanwhile, the Company was also one of the first securities houses in China participating in the corporate assets securitization. As the program manager and promoter of the corporate assets securitization project of Jiangsu Wuzhong, CITIC Securities undertook designing and offering of a total of RMB 1.658 billion securitization products of the group; it is the largest BT category assets securitization project in China so far.

    From 2008 to date, CITIC Securities reported 5 deals of credit assets securitization projects to People¡¯s Bank of China and China Banking Regulatory Commission, ranking the first among the peers in the number and amount of the reported projects; CITIC Securities acted as the program manager and promoter in both of the two corporate assets securitization projects approved by CSRC in 2010, ranking the first in the market.

    While obtaining the leading advantages in the public offering assets securitization, the Company also aggressively expanded the new model of private placement structured businesses. In 2010 the Company completed private placement structured financing for six enterprises in 2010, i.e., Sunshine100 Real Estate Development Group, Hainan Zhenghe Industrial Group, Beida Jade Bird Group, Xinhu Zhongbao, High-way Real Estate Group in Anhui Province and Changchun Charter Time Square General Merchandise, as well as the equity product investment of Changchun Charter, achieving a material breakthrough in the private placement structured business and paving a way for the massive operation of non-channel businesses of the Company going forward.