联合利华的项目建议书.pptVIP

A share new issue already exceeds international offering China new issuance pipeline The second largest market in Asia by market capitalisation (US$500bn vs Hong Kong‘s US$450bn), only next to Tokyo There are 1,100 + companies listed in Shanghai Stock Exchange and Shenzhen Stock Exchange A share market is highly fragmented, the top 10 stocks account for only 12% of total market capitalization vs. 33 Hang Seng Index stocks account for over 80% of the total market cap of HK market Major quality corproates are beocming increasingly the focus of the market A share market has become major fund raising marketplace…. …and also the fastest growing market in the world In last 5 years 70% of China new issuance were completed in the domestic markets (in terms of dollar volume) Total domestic transactions amounted to US$100bn vs US$50bn for international offerings A share market has demonstrated its capacity to absorb large issues such as China Merchant Bank (US$1.32bn, Apr 02), Huaneng Power (US$335m, Nov 01) and Sinopec (US$1.43bn, Jul 01) * Implication of liberalization of A share market * Change percentage 2002 to date China market has underperformed in last 6 months Source Bloomberg Change percentage since “911” * A share markets have recovered since the beginning of the year after significant decline in 2H2001 Market relative performance (since 2001) A share volume (since 2001) Market became bullish on positive economic data and earnings prospects Government’s announcement of crack down on illegal funds financed by bank credit to the stock market Government decided to suspend the sale of state-owned shares Announcement of reduction of stamp duty of securities trading Market was speculating that no further market boosting policy measures would be implemented in near term and worried about over massive overhang of Sinopec A shares Shanghai A Source Bloomberg * New issue performance - China IPOs since 2001 International: post IPO performance...mixed Domestic: post IPO