CITIC Construction Investment’s corporate business

Stock underwriting and financial consulting business CITIC Securities stock underwriting and financial consulting business is committed to providing services from plan design to issuance pricing and underwriting for the restructuring, mergers and acquisitions, reorganization and equity financing activities of various domestic enterprises. The whole process of professional services. At present, it mainly carries out sponsorship, underwriting and listing recommendation business for initial public offerings and listings, various types of refinancing of listed companies, and provides financial advisory services such as restructuring, mergers and acquisitions, and equity incentives for various enterprises, including listed companies.

In 2009, the company completed 5 IPOs of China National Chemical Engineering Co., Ltd., China International Travel Service Co., Ltd., Huayi Brothers Media Co., Ltd., Beijing Oriental Garden Co., Ltd., and Zhejiang Xianju Pharmaceutical Co., Ltd. Projects; completed 4 equity refinancing projects of Beijing Sanyuan Food Co., Ltd., Guangdong Guanhao High-tech Co., Ltd., China Gezhouba Group Co., Ltd., and Beijing Wangfujing Department Store (Group) Co., Ltd.; completed Oceanwide Construction Group Co., Ltd. Co., Ltd., Shanghai Tunnel Engineering Co., Ltd., Shanghai New Huangpu Real Estate Co., Ltd., Sichuan New Hope Agriculture Co., Ltd., and Beijing Hualian Supermarket Co., Ltd. as the lead underwriter for 5 corporate bond projects. Among them, China International Travel Service, as the first IPO project of a central enterprise completed by the company, became the central enterprise with the best market performance on the first day of listing that year; Huayi Brothers, as the only media and entertainment company in China that is listed on the whole content, was listed on the first batch of 28 GEM Among the enterprises, the company ranks first in the number of institutional subscriptions, first in the amount of online and offline subscription funds, first in the dynamic issuance price-to-earnings ratio, first in the first-day opening increase, and many other market firsts.

In 2009, the company's equity lead underwriting project financing amount reached 16.288 billion yuan, and the lead underwriting amount and number of projects ranked 4th and 7th among its peers. Among them, the lead underwriting amount and number of IPO projects ranked first in the industry respectively. It ranks 3rd and 4th among its peers, and ranks 3rd among its peers in terms of number of corporate creditor underwriters. In the past four years, the company has completed 30 lead underwriting projects for stocks and corporate bonds and 48 financial advisory projects, raising a total of 50.382 billion yuan.

The Capital Markets Department of CITIC Securities Capital Markets Department is responsible for organizing and coordinating the company's investment banking department, bond underwriting department, bond sales and trading department, institutional business department and other departments to participate in the completion of stock and bond financing. The issuance and underwriting of projects is responsible for the functions of formulating issuance plans, evaluating corporate values, controlling underwriting risks, forming underwriting syndicates, roadshow promotions, inquiry pricing, bookkeeping and placement, etc., to promote the company's securities underwriting business to further enhance professionalism and refinement. In 2009, the Capital Markets Department successfully organized and implemented the issuance work of all 9 stock lead underwriting projects and 20 bond lead underwriting projects undertaken by the company, and independently completed 11 deputy stock underwriting and distribution projects and 25 deputy bond underwriting projects. Underwriting and distribution projects.

Since its establishment, the Capital Markets Department has organized and implemented the issuance of 21 stock lead underwriting projects, including the Bank of Beijing IPO, Gezhouba Separate Trading Convertible Bonds, and Tunnel Share Allotment; Lead underwriting of 29 bond issuance projects, including state-owned central bonds, Beijing Metro corporate bonds, Dalian Bank subordinated bonds, etc. In addition, it also undertook 48 deputy lead underwriting and distribution projects for stocks and 71 deputy lead underwriting and distribution projects for bonds.

In order to provide customers with more comprehensive and in-depth integrated services, the Capital Markets Department also strives to strengthen comprehensive and in-depth research on international and domestic capital market data statistics, situation analysis and new financing tools and new financial products, and is dedicated to providing Provide customers with timely and effective professional consulting services.

Bond underwriting business CITIC Securities' bond underwriting business is committed to providing bond financing companies with professional and high-quality services throughout the entire process from plan design, bond pricing, organization of issuance to bond sales. The company currently mainly engages in the underwriting of fixed-income products such as treasury bonds, policy financial bonds, subordinated bonds, corporate bonds, and convertible bonds, as well as the design and development of innovative fixed-income products.

In 2009, the company seized the favorable opportunity of the rapid development of the bond market and completed the projects of State Grid Corporation of China, Beijing State-owned Capital Management Center, Aviation Industry Corporation of China, Chongqing Real Estate Group Co., Ltd., Shanxi Provincial Communications Construction Development Investment Corporation, Zhuzhou City Urban Construction Investment and Operation Co., Ltd., Chongqing Longhu Enterprise Development Co., Ltd., Heilongjiang Hecheng Construction Investment and Development Co., Ltd., Shandong Gold Group Co., Ltd., Chengdu Xingrong Investment Co., Ltd., Wuhu Construction Investment Co., Ltd., China National Machinery Industry Corporation , Dalian Small and Medium Enterprises Collective Bond and other 13 corporate bond lead underwriting projects; completed 2 subordinated bond lead underwriting projects of Bank of Dalian Co., Ltd. and Zhengzhou Bank Co., Ltd. Among them, Dalian SME Bond is the first SME collective bond to be issued after the China Banking Regulatory Commission stopped commercial banks from providing guarantees for corporate bonds. It is a useful attempt to broaden financing channels for SMEs; Longfor Real Estate Bond is the first non-listed private enterprise. Real estate corporate bonds have positive significance in supporting the development of private enterprises.

In 2009, the company’s dominant position in corporate bond underwriting business continued to be consolidated. The amount of funds raised for corporate bond lead underwriting projects reached 60.105 billion yuan, among which the number of corporate bond lead underwriters ranked 4th among the peers, and the amount of corporate bond lead underwriters ranked 6th among the peers. In the past four years, the company has completed 31 corporate bond lead underwriting projects, with the lead underwriting amount reaching 92.105 billion yuan.

Brokerage Agency Business CITIC Securities Brokerage Business adheres to the business philosophy of "service creates value, integrity wins customers", through 120 business outlets covering more than 80 large and medium-sized cities in 20 provinces (cities) across the country , providing more than 3 million customers with brokerage agency services for all investment varieties in the market, including Shanghai and Shenzhen A shares, B shares, funds, bonds, agency share transfers, warrants, quotation transfers, etc., and intermediary introduction services for financial products such as stock index futures. and other value-added products and services. The company has made all preparations to carry out margin trading and securities lending business, and has actively applied for gold business pilot qualifications, striving to become the first domestic securities firm to carry out gold spot agency business. The company is committed to building an investment advisory service brand with the characteristics of CITIC Securities. By establishing a professional and systematic investment advisory team, improving call centers, comprehensive information service platforms and other means, it provides customers with "CITIC Viewpoints", " Rich professional information products such as "Researcher's Frontline Express", "Fund Stock Selection", and "Monthly Strategy Tracking"; according to the special needs of different customers, we launch ETF arbitrage business, customer asset revitalization plans and "Zhi Sheng", " "Zhizun", "Zhiduoxing" and other series of combination products strive to provide customers with high-quality professional services and realize the value-added of customer assets.

In 2009, the market share of the company's brokerage business continued to increase, with a total transaction amount of 3,827.671 billion yuan, including a total stock fund transaction amount of 3,656.320 billion yuan, ranking 9th in the industry; the total stock fund transaction amount The market share of the amount reached 3.35%, ranking second among the top ten securities companies in the country; the total amount of bond transactions completed was 21.575 billion yuan, ranking second in the industry; brokerage business income ranked seventh in the industry.

Fund business CITIC Securities adheres to the principle of "standardization, marketization, and specialization" to provide comprehensive research services and sales services to fund management companies and other asset management institutions. Fund research services mainly rely on resource advantages such as company research and investment banking to provide fund management companies with high-level, all-round professional services including research reports, listed company surveys, entrusted topic research, IPO inquiry, investment banking project consulting, etc. In 2009, the company deeply explored the needs of fund customers and invited experts from the National Development and Reform Commission and the People's Bank of China to give special lectures to fund customers many times throughout the year. It planned and organized fund customers to conduct in-depth research on key listed companies in machinery, communications, electronics, textiles, food and other industries. Communication; participated in completing a large number of projects between fund management companies and the Social Security Council, achieving effective connection between company research and customer needs.

Fund sales services mainly rely on the company's nationwide business outlets and professional service advantages to sell various fund products to brokerage customers and develop and sell fund special account financial products. The company is the first in the industry to obtain the qualification for fund sales agency business and sells all public fund products of all domestic fund companies. It is currently one of the two agency sales agencies with the most complete range of fund products in China and has the qualifications of a primary dealer for all ETF products.

The company is the first in the industry to establish a "fund supermarket" to provide customers with systematic, comprehensive, professional and personalized fund services. It is also the first company approved to implement open-end fund online transactions and regular fixed-amount subscription fee discounts, and the first company to carry out intelligent Fixed redemption business. In 2009, the company became one of the first batch of agency sales agencies for fund “one-to-many” products and successfully issued 5 fund “one-to-many” products. It became the brokerage firm that sold the largest number and largest amount of fund “one-to-many” products that year.

Institutional Business CITIC Securities Institutional Business, by integrating corporate research, investment banking, fixed income, asset management and other resources, is committed to serving commercial banks, trust companies, fund companies, insurance companies, large state-owned enterprises, Listed companies, financial companies, investment companies, private equity funds, QFII and other institutional investors and high-end private customers provide high-level, all-round, diversified and differentiated comprehensive financial services, and strive to promote the company through professional sales and services. Maximize the income of institutional customers and increase the company's influence among institutional customer groups. The company provides customers with a full range of financial activities and strategic consulting services, and tailors personalized financial solutions for customers, covering the primary and secondary markets; using advanced asset securitization technology, it strives to explore and satisfy the financing business of institutional customers , financial consulting and asset management and other business needs, provide high-end customers with the best asset allocation, as well as innovative issuance design and investment and financing solutions to maintain and increase the value of customer assets. The main advantage of the company's institutional business is that it continues to track and take the lead in interpreting policies, seizes business opportunities, continuously launches innovative product plans, adapts to the market environment, and leads market trends; it designs, builds and executes various portfolio strategies according to the different needs of customers, Achieve investment goals.

The company’s institutional business currently covers market value management, cash management, annuity management, equity and wealth management, fixed income, block trading, financial futures, asset allocation, securitized products, special account financial management, financial financing and It has achieved good results in areas such as bridge loans. Not only has it achieved the largest scale of domestic bank trust product management, it has also strived to open cooperation channels with other investors through a wide range of banking channels, build a comprehensive business platform, and realize bank intermediary business and securities agency business. A win-win situation.

Bond sales and trading business CITIC Securities’ bond sales and trading business can provide customers with treasury bonds, central bank bills, policy financial bonds, medium-term notes, corporate bonds, short-term financing bonds, asset-backed securities, and subordinated securities. Sales and trading services of bonds, convertible corporate bonds, corporate bonds and other fixed income products and derivative products, carry out bond spot and repurchase transactions in the inter-bank market and exchange market, and conduct a certain scale of fixed income products such as bonds. business investment. In 2009, the corporate bond sales and trading business continued to achieve good results. The transaction volume of cash bonds completed throughout the year was RMB 774.573 billion, and the total transaction volume was RMB 1,014.159 billion, both ranking second in the industry; the underwriting volume of treasury bonds was RMB 7.714 billion, and the underwriting volume of various financial bonds was RMB 25.845 billion; 34 corporate transactions were completed The sales volume of bonds, corporate bonds and subordinated bonds reached 33.519 billion yuan.

The corporate bond sales and trading team has professional research capabilities and keen market insight and judgment, and can develop the sales market from multiple angles and levels. In the past four years, the company has completed a cumulative spot trading volume of 1,322.774 billion yuan, and completed a total bond trading volume of 1,755.156 billion yuan; it has underwritten a total of 33.413 billion yuan of treasury bonds and 66.045 billion yuan of various financial bonds. In 2009, it obtained the first-level fixed income platform of the Shanghai Stock Exchange Trader qualification opens up a broader path for business development.

Securities Investment Business The securities investment business of CITIC Securities is responsible for the investment in the company’s equity securities and financial derivatives, and obtains good investment returns for the company under the premise of strictly controlling risks. The securities investment business has established and improved a complete system and process from investment analysis, scientific decision-making, trading operations to risk control; it has a first-class talent team and rich investment experience; it has a complete range of securities investment products, covering stocks, open-end funds, trust plans, etc. Non-fixed income products and financial products and financial derivatives allowed for investment in other countries. In recent years, the investment performance of the company's securities investment business has always maintained a high level among its peers.

In 2009, the company’s securities investment business introduced a new asset management system, realizing the separate account management of securities investment business and the ex-ante risk management function of investment behavior.

Under the premise of strictly controlling risks, we accurately judge market trends, flexibly adjust investment strategies, continuously improve business processes, and timely seize market opportunities. The annual investment performance is significantly better than the average net value growth of the CSI 300 Index and comparable open-end stock funds. Rate. At the same time, the securities investment business also gives full play to its ability to select individual stocks, actively participates in non-public offerings and other businesses in the market, and achieves good returns.

Asset management business CITIC Securities Asset Management Business is responsible for providing customers with professional asset management services such as collective asset management, directional asset management, and investment consulting. By meeting the different needs of customers with different risk preferences, we can achieve The purpose of maintaining and increasing the value of customer assets. 2009 is the first year for CITIC Securities Asset Management business. On November 26, 2009, the company's first collective asset management plan - "CITIC Construction Wonderful Financial Management Flexible Allocation Collective Asset Management Plan" was approved by the China Securities Regulatory Commission.

Currently, China Securities Asset Management’s securities asset management business has built a complete product line from fixed income to equity and innovation, and has established a comprehensive product line covering customer development and services, product design and innovation, investment research and A complete asset management operation system in terms of management, business statistics and risk control. The company will continue to improve customer investment returns through active efforts and form a brand advantage in the asset management business as soon as possible.

Fund Operation Business CITIC Securities’ capital operation business gives full play to the company’s internal banking functions, actively promotes the continuous optimization of the company’s resource allocation efficiency, and improves the operating efficiency of the company’s own funds. In 2009, while adhering to the risk-free and low-risk allocation strategy, and through efficient management of its own funds, the company's secondary allocation rate of return exceeded the net value growth rate of money market funds.

At present, the company has obtained credit lines from a number of large state-owned commercial banks and joint-stock commercial banks. By actively carrying out currency transactions in the inter-bank lending market, the company's inter-bank lending activity and transaction volume in the market in 2009 Ranking among the best in the industry in terms of other indicators.

The company is committed to expanding and maintaining cooperative relationships with large and medium-sized commercial banks across the country, and has integrated and laid out a commercial bank-based inter-bank deposit of its own funds, inter-bank local currency transactions (lending, repurchase) ), a multi-level customer resource system for business cooperation such as third-party custody of customer funds, margin financing and securities lending, and customer sharing.

Research Business CITIC Securities Research Business, with the service concept of "leading professional investment and creating value through research", strives to provide professional research and consulting support to our customers. The research fields cover macroeconomics, industry analysis, listed companies, financial engineering and investment strategies, etc. It also undertakes projects commissioned by government agencies and large social groups, and has won wide recognition from all walks of life and customers with its professional research results and international perspective. In 2009, the company's research business tracked market trends in a timely manner, continuously improved product research, and steadily increased the popularity and market recognition of research products. At present, the company's research products maintain traditional information products such as "Morning Express", "Analyst Text Message", and "Capital Market Weekly Report", while adding new information products such as "Weekly Viewpoint Collection" and "Weekly Industry Rating"; Successfully organized two large-scale national investment strategy report conferences, "Road to Recovery" and "Return of the King", as well as multiple small-scale special conferences such as "Macroeconomic Seminar", "Food Safety", "3G Business", etc., forming a CITIC Construction A research results display platform with characteristics of investment securities. In addition, the company has successfully completed nearly 30 projects entrusted by the Ministry of Commerce, the Social Security Council and other institutions and groups, and its high-quality research reports have been unanimously recognized by the entrusting parties.

In 2009, the company's analysts won the second place in the "2009 Vision Cup China Macroeconomic Quarterly Forecast Winner Award" organized by "Securities Market Weekly" and won the "Sell-side Analyst Golden Finger Award" 4 people won the award; 7 people won the award in the "China's Best Securities Analyst" selection event hosted by Today's Investment and Financial Information Company, ranking second in the total number of awards.

For trading and clearing business, CITIC Securities has established a centralized, professional, and standardized unified registration and settlement operating system to provide stable, safe, and fast securities registration and settlement services for the company's various businesses and customer transactions. Mainly include: clearing and settlement of securities and funds, securities account opening and management, securities registration and custody, securities equity dividend distribution agency services. All business outlets of the company are qualified as real-time account opening agents and can handle account opening procedures for customers in a timely manner.

At present, all the transaction settlement funds of the company's customers have been implemented in third-party custody. It has opened third-party custody business with 16 commercial banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications. The settlement path is clear and clear, achieving This ensures the safe, closed and efficient operation of customer funds.

The company is further expanding the breadth and depth of registration and settlement services, focusing on settlement operations and oriented by business needs, striving to improve the operational safety, operational quality, and operational efficiency of the transaction clearing business, so as to achieve transaction settlement Centralized acceptance, safe and complete customer assets, controllable business operation risks, support services to create value, and actively build the company's centralized, professional, safe and efficient business operation platform.

In 2009, the company ranked 6th and 9th among its peers in the Shanghai-Shenzhen Depository and Clearing Corporation’s securities settlement volume rankings; it ranked 2nd in the industry in the inter-bank bond market’s securities settlement volume rankings; The total amount of securities custody ranks among the top in the industry.

Information Technology System CITIC Securities is committed to building an integrated, professional, standardized and intelligent information technology system to ensure the provision of safe, reliable, efficient information and personalized services to our customers. The company's centralized trading system has ensured safe, reliable, efficient and stable operation for several consecutive years, and provides professional on-site trading services to customers through nearly 50,000 counter, self-service, hot self-service and other trading terminals in 120 business outlets. The company has established dedicated online transaction channels covering the Internet backbone nodes of all telecom operators such as China Telecom, China Unicom, and China Mobile in 8 central cities including Beijing, Shanghai, and Guangzhou, and more than 20 large and medium-sized cities such as Shenyang, Xi'an, and Changsha. , providing the shortest path of high-speed online transaction services, with a total bandwidth of more than 7G, leading the industry. The company also provides multi-channel trading services to our customers by establishing a telephone entrustment system with a unified short number 95587 (the total number of access lines exceeds 9,000), and a mobile securities platform that supports all mobile operators.

In order to meet the different needs of customers, the company also provides a variety of optional online trading software, online market software, mobile securities software, and intelligent arbitrage software; the company uses its website, unified number SMS platform and call center to , CSC108 secretary, customer relationship management system, etc., to provide our customers with all-weather, professional and personalized information services integrating information, consulting, products, transactions and services.

Risk Control and Compliance Management CITIC Securities attaches great importance to risk control and compliance management, and always adheres to the concept of "risk control first, all employees risk control" to ensure the company's stable operations. At present, the company has established a comprehensive risk control system covering all business processes and management links, and implements effective identification, monitoring, measurement, control, etc. of operational risks, credit risks, market risks, liquidity risks, legal risks, etc. Evaluate, report, and pay attention to the research and management of new business risks to ensure that all risks are measurable, controllable, and bearable.

The company actively promotes the construction of a compliance management system, establishes an anti-money laundering management model, designs information isolation operation processes, and conducts compliance audits, compliance consultations, compliance monitoring, compliance inspections, etc. Compliance management runs through the company's decision-making, execution, supervision, feedback and other aspects, and is integrated into the entire process of the company's operation and management. It has initially formed a good compliance cultural atmosphere, ensuring that the company's operation and management work meets the requirements of laws and regulations, and effectively protects the company's customers. legitimate rights and interests.

The futures company CITIC Futures Brokerage Co., Ltd. was established on March 16, 1993 and registered in Chongqing, China, with a registered capital of 350 million yuan. It is one of the ten earliest professional futures companies established in China. The company is currently a member of the Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and a trading clearing member of the China Financial Exchange. It is also a member of the China Futures Association and a member of the Council of Chongqing Securities and Futures Association. The main business of CITIC Futures Brokerage Co., Ltd. includes commodity futures brokerage and financial futures brokerage. The company has established a research system covering major domestic futures varieties and provides customers with innovative financial services such as futures hedging, low-risk arbitrage products, and investment consulting. At present, it is making full use of the network advantages and customer resources of CITIC Securities to develop the stock index futures agency business.

The company attaches great importance to information construction and strives to build a high starting point and high-standard trading platform to provide safe, reliable and efficient information services for investors. The trading system can simultaneously satisfy the online needs of 100,000 investors. According to the requirements, a high-standard off-site disaster backup computer room has been built to realize multiple backups of the trading system and three channels of quotation lines. The technical system meets the requirements of China Financial Futures Exchange for comprehensive settlement membership and has reached a processing speed of 200 transactions/second.

CITIC Futures Brokerage Co., Ltd. has 7 business outlets across the country in Beijing, Shanghai, Jinan, Changsha, Dalian, Zhengzhou, and Nanchang. It provides futures investment in various places through website, call center, SMS and other service platforms. Provides round-the-clock personalized information services.

China Construction Investment Capital Management Co., Ltd. China Construction Investment Capital Management Co., Ltd. was established on July 31, 2009. It is one of the companies approved by the China Securities Regulatory Commission to carry out pilot direct equity investment business. The company is registered in Beijing, China, with a registered capital of 150 million yuan. Its business scope includes project investment, investment management, asset management and financial consulting.

With the advantage of CSC Securities’ network network covering the whole country and its strong investment banking business platform, CSC Capital Management Co., Ltd. actively pays attention to high-growth companies that plan to enter the domestic capital market and have independent intellectual property rights. Or companies with merger and acquisition value in industrial integration, we are committed to providing them with comprehensive financial services and technical support, and in the process of assisting customers to establish and achieve long-term development goals, we seek to win the most value with customers.

The company is exploring business opportunities in advantageous industries such as media, medicine, new energy, and information technology, and strives to obtain long-term and stable investment returns on the premise of controlling business risks.