DOCSLIB.ORG

An Equity Strategist's Diary Shadow Banking Monitor 24, Financial

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
An Equity Strategist's Diary Shadow Banking Monitor 24, Financial China: An Equity Strategist’s Diary Shadow banking monitor 24, financial system vulnerable to A-share losses Investment Strategy 27 July 2015 Equity Strategy Leverage, inflated collateral & unclear risk responsibility China We estimate that margin outstanding, only from the seven channels that we can estimate reasonably, easily exceeds Rmb3.7tr. Assuming an average 1x leverage, it means that at least David Cui >> Strategist Rmb7.5tr market positions are being carried on margin, equivalent to some 13% of A-share’s Merrill Lynch (Singapore) +65 6678 0411 market cap and 34% of its free float. Meanwhile, A-shares ex. banks are still trading at 36.6x [email protected] 12M trailing PER. We believe that the government will struggle to hold up the market beyond Tracy Tian, CFA >> a few months, unless it is prepared to let go some of its other policy objectives including Strategist Merrill Lynch (Hong Kong) RMB credibility (The A-share market may see another leg down within months, Jul 20). When +852 2161 7632 the market ultimately settles at a level that can be sustained on fundamental reasons, we [email protected] expect that the balance sheet of most financial institutions (FIs) may get impaired and the Katherine Tai >> Strategist financial system may wobble, due to high contagion risk. Merrill Lynch (Hong Kong) +852 3508 7524 [email protected] Leverage means relentless selling pressure The seven channels mentioned above are margin financing (MF), stock collateralized lending (SCL), umbrella trust (UT), stock benefits swap (SBS), structured mutual fund (SMF), P2P and offline private fund matching (Table 1). There are a few other difficult–to-estimate channels, such as banks’ corporate/personal loans that ended up in stocks, brokers’ proprietary desk and funds’ subsidiaries. We suspect that the size of these may be Rmb1-2tr. In addition, China Securities Finance Corp. (CSFC) might have borrowed Rmb1.5tr from banks & PBoC to buy stocks. All the leveraged positions may want to unwind at certain point given the inflated collateral value, in our view. Additional selling pressure may come from hedge funds with compulsory winding-down clauses, when the market heads lower. Balance sheet damage & contagion risk It seems to us that A-shares ex. banks could at least halve, which would only bring down their average PER to just below 20x, before any reasonable case about valuation support could be made. This means that most leveraged positions may suffer from losses ultimately, likely in Rmb trillions. On the other hand, the capital base of brokers and trusts, who are the first loss takers behind investors, is only Rmb1.6tr (Table 2). Banks’ capital may suffer greatly as well once the equity of the other FIs is depleted – banks provide or channel most of the leverage Table of contents: directly or indirectly. The risk is that the unwinding of the leverage will be disorderly – due to • WMP – P13 implicit guarantees behind most shadow banking financial products, investors could easily panic if they suffer from meaningful capital losses, by our assessment. The key risk to our • Trust – P21 view is that the government may be prepared to take on substantially all the leverage, in which case, we expect RMB or growth to come under pressure. • Corporate (LGFV) bond – Shadow banking update P26 Since our last publication in late-Apr, shadow banking activities continued to slow. Total • Price signals – P35 social financing balance growth slowed to 9.2%YoY in Jun, vs +11% in May, +11.8% in Apr and +13.6% in Mar. Correspondingly, sales of WMPs, trusts, and corporate bonds, especially • Shadow banking related LGFV bonds, all showed various degrees of weakness. Given a sizeable portion of shadow news – P39 banking lending likely went to fund stock investment during the covered period, the trend implied a tougher environment for real business borrowers compared to earlier in the year. • Links to our previous reports on shadow banking – P67 >> Employed by a non-US affiliate of MLPF&S and is not registered/qualified as a research analyst under the FINRA rules. Refer to "Other Important Disclosures" for information on certain BofA Merrill Lynch entities that take responsibility for this report in particular jurisdictions. BofA Merrill Lynch does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 70 to 71. 11537386 The Seven quantifiable leverage channels Table 1 summarizes the key figures of the seven leverage channels that we can put some reasonable estimates on. The size of these channels is roughly Rmb3.7tr. Table 1: Key figures of the seven leverage channels Common interest Size cost for borrowers Leverage channel (Rmb bn) As of Sources; basis of estimates Common leverage (p.a.) Main funding sources Margin Financing (MF) 1,455 July 23 China Securities Finance Corp. 1x 8-9% Bank WMP, broker (own fund + TAM) Stock Collateralized Lending (SCL) 901 July 22 Wind; We assume a 40% average 0.3-0.5x 5-13% Broker (own fund + TAM), bank loan-to-asset value loan, trust Umbrella Trust (UT) 621 1H China Trust Industry Associations; 2-3x 9-10% Bank WMP, broker TAM, fund We assume 1) 80% of stock related TAMC, P2P, offline private fund trust AUM increase since mid-14 is matching firms, HNWIs, for UT; and 2) 2Q15 increase in such corporations AUM = 1Q15's. Stock Benefits Swap (SBS) 123 1Q Securities Association of China 2-4x 8-10% Broker (own fund + TAM), bank WMP Structured Mutual Fund (SMF) 473 1H Fund Industry Association 2x 8-9% Retail P2P 20 1Q Securities Times article on March 3x 18-20% Retail 9th, citing local experts' estimate Offline Private Fund Matching 150 1Q As above 2-10x 15-20% Retail & HNWIs Subtotal 3,743 Source: Various news, BofA Merrill Lynch Global Market Margin Financing (MF): Rmb1,455bn This is the most transparent part of the leverage in the stock market with CSFC announcing the outstanding balance on a daily basis. The balance peaked on Jun 18th at Rmb2,267bn and has since declined to Rmb1,455bn by July 23rd (Chart 1 & 2). Chart 1: Margin purchase as % of daily turnover Chart 2: Margin trading balance as % of A-share market cap 24% 2,400 5% Margin trading outstanding, Rmb bn (rhs) Margin purchase as % of daily turnover (lhs) 20% 2,000 4% 16% 1,600 3% 12% 1,200 2% 8% 800 1% 4% 400 0% 0 0% Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-13 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Apr-12 Oct-14 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Jan-11 Jun-11 Mar-10 Mar-15 Feb-13 Nov-11 Dec-13 Aug-10 Sep-12 May-14 Source: WIND, BofA Merrill Lynch Global Market Source: WIND, BofA Merrill Lynch Global Market This is likely the safest part of the leverage as well because the government has kept a fairly tight control over the leverage ratio – for example, brokers will call for additional margin if an account’s Collateral Maintenance Ratio, defined roughly as market value/margin financing, falls below 130% (Margin call - it's what we don't know that matters, Jun 30). That said, we don’t believe that the leverage here is completely safe because 1) average entry level for MF 2 China: An Equity Strategist’s Diary | 27 July 2015 positions can be quite high judging from the large size of the daily buying activities financed by margins, often in hundreds of billions of Rmb; and 2) the government had allowed brokers to loosen margin requirements in recent weeks as part of its efforts to stabilize the market (Table 1, The A-share market may see another leg down within months, July 20). MF is largely funded by banks via bank wealth management product (WMP) and brokers via their own funds and their Targeted Asset Management programs (TAM) – Exhibit 1. Although the government forbids banks to directly lend for stock purchase, it allows banks to do so indirectly via WMP because, in theory, banks do not bear losses if WMP loses money (more on this latter), and buyers of WMP are supposed to be reasonably sophisticated. Exhibit 1: How MF is funded Source: BofA Merrill Lynch Global Market CSRC limits a broker’s MF balance outstanding to 4x of its net equity. Stock Collateralized Lending (SCL): approx. Rmb900bn Holders of listed stocks can go to brokers, banks and trust companies to obtain a loan, using the stocks as collateral. Although in theory the borrowers can use the obtained funds for many purposes, we suspect that in recent times most of them used the funds to invest in the stock market, sometimes by buying the very stocks they used as collaterals to drive up their prices. It appears to us that potential margin calls from this lending source is one of the main reasons why, at the height of the A-share market crash, close to half of the A-share companies had their stocks suspended from trading (Chart 1, The A-share market may see another leg down within months, July 20). Based on data from Wind, we calculate that the outstanding value of stocks being collateralized, based on the value on the date of collateralization, reached Rmb2,253bn by July 22, up from Rmb1,475bn at the end of June 2014.
Load more

Recommended publications
  • Wuhu 37 Interactive Entertainment Network Technology Group Co., Ltd
    Wuhu 37 Interactive Entertainment Network Technology Group Co., Ltd. 2020 Annual Report (Summary) April 2021 Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail. 1 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Wuhu 37 Interactive Entertainment Network Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the truthfulness, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Li Weiwei, the Company’s legal representative, and Ye Wei, the Company’s Chief Financial Officer & Board Secretary, hereby guarantee that the financial statements carried in this Report are truthful, accurate and complete. All the Company’s directors have attended the Board meeting for the review of this Report. Possible risks facing the Company have been detailed in the section under the heading of “Prospects” under “Part IV Operating Performance Discussion and Analysis” herein, which investors are kindly reminded to pay attention to. The Company is subject to the disclosure requirements for listed companies engaged in software and IT services. The Board has approved a final dividend plan as follows: based on 2,217,864,281 shares, a cash dividend of RMB 2 (tax inclusive) per 10 shares is planned to be distributed to all the shareholders of the Company, with no bonus issue from either profit or capital reserves.
    [Show full text]
  • Annual Report, and They Severally and Jointly Accept Legal Responsibility for the Truthfulness, Accuracy and Completeness of Its Contents
    (A joint stock limited company incorporated in the People's Republic of China with limited liability) Stock Code: 1618 * For identification purpose only IMPORTANT NOTICE I. The Board and the Supervisory Committee of the Company and its Directors, Supervisors and senior management warrant that there are no false representations, misleading statements contained in or material omissions from the information set out in this annual report, and they severally and jointly accept legal responsibility for the truthfulness, accuracy and completeness of its contents. II. The Company convened the 14th meeting of the third session of the Board on 31 March 2020. All Directors of the Company attended the meeting. III. Deloitte Touche Tohmatsu CPA LLP issued an unqualified audit report to the Company. IV. Guo Wenqing, the Chairman and legal representative of the Company, Zou Hongying, the Vice President and the Chief Accountant of the Company, and Fan Wanzhu, the Deputy Chief Accountant and the Head of the Financial Planning Department, have declared that they warrant the truthfulness, accuracy and completeness of the financial report contained in this annual report. V. The proposal for profit distribution or transfer of capital reserve to share capital for the Reporting Period was considered by the Board The net profit attributable to Shareholders of the Company in the audited consolidated statement of MCC in 2019 amounted to RMB6,599,712 thousand and the undistributed profit of MCC headquarters amounted to RMB1,920,906 thousand. Based on the total share capital of 20,723.62 million shares, the Company proposed to distribute to all Shareholders a cash dividend of RMB0.72 (tax inclusive) for every 10 shares and the total cash dividend is RMB1,492,101 thousand, the remaining undistributed profit of RMB428,805 thousand will be used for the operation and development of the Company and rolled over to the coming year for distribution.
    [Show full text]
  • 中國銀行股份有限公司 Bank of China Limited
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. 中國銀行股份有限公司 BANK OF CHINA LIMITED (a joint stock company incorporated in the People’s Republic of China with limited liability) (the “Bank”) (Stock Code: 3988 and 4619 (Preference Shares)) Report for the Third Quarter ended 30 September 2020 The Board of Directors (the “Board”) of the Bank is pleased to announce the unaudited results of the Bank and its subsidiaries (the “Group”) for the third quarter ended 30 September 2020. This announcement is made by the Bank pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. I. BASIC INFORMATION 1.1 Corporate information A Share Shanghai Stock Exchange Stock Name 中國銀行 Stock Code 601988 H Share The Stock Exchange of Hong Kong Limited Stock Name Bank of China Stock Code 3988 Domestic Preference Share Shanghai Stock Exchange First Tranche Stock Name 中行優1 Stock Code 360002 Second Tranche Stock Name 中行優2 Stock Code 360010 Third Tranche Stock Name 中行優3 Stock Code 360033 Fourth Tranche Stock Name 中行優4 Stock Code 360035 Offshore Preference Share (Second Tranche) The Stock Exchange of Hong Kong Limited
    [Show full text]
  • Netizens, Nationalism, and the New Media by Jackson S. Woods BA
    Online Foreign Policy Discourse in Contemporary China: Netizens, Nationalism, and the New Media by Jackson S. Woods B.A. in Asian Studies and Political Science, May 2008, University of Michigan M.A. in Political Science, May 2013, The George Washington University A Dissertation submitted to The Faculty of The Columbian College of Arts and Sciences of The George Washington University in partial fulfillment of the requirements for the degree of Doctor of Philosophy January 31, 2017 Bruce J. Dickson Professor of Political Science and International Affairs The Columbian College of Arts and Sciences of The George Washington University certifies that Jackson S. Woods has passed the Final Examination for the degree of Doctor of Philosophy as of September 6, 2016. This is the final and approved form of the dissertation. Online Foreign Policy Discourse in Contemporary China: Netizens, Nationalism, and the New Media Jackson S. Woods Dissertation Research Committee: Bruce J. Dickson, Professor of Political Science and International Affairs, Dissertation Director Henry J. Farrell, Associate Professor of Political Science and International Affairs, Committee Member Charles L. Glaser, Professor of Political Science and International Affairs, Committee Member David L. Shambaugh, Professor of Political Science and International Affairs, Committee Member ii © Copyright 2017 by Jackson S. Woods All rights reserved iii Acknowledgments The author wishes to acknowledge the many individuals and organizations that have made this research possible. At George Washington University, I have been very fortunate to receive guidance from a committee of exceptional scholars and mentors. As committee chair, Bruce Dickson steered me through the multi-year process of designing, funding, researching, and writing a dissertation manuscript.
    [Show full text]
  • Annual Report CONTENTS
    (A joint stock company incorporated in the People’s Republic of China with limited liability) Stock Code: 6066 2018Annual Report CONTENTS Definitions ................................ 2 Chairman’s Statement ....................... 6 Section 1 Important Notice ................. 8 Section 2 Company Information ............. 10 Section 3 Financial Summary ............... 29 Section 4 Management Discussion and Analysis .................... 35 Section 5 Report of Directors ............... 102 Section 6 Other Significant Events ........... 120 Section 7 Changes in Shares and Information on Substantial Shareholders .......... 124 Section 8 Directors, Supervisors, Senior Management and Employees ....... 129 Section 9 Corporate Governance Report ...... 163 Section 10 Environmental, Social and Governance Report ............... 192 Annex Independent Auditor’s Report and Notes to the Consolidated Financial Statements ..................... 224 Annual Report 2018 1 DEFINITIONS Unless the context otherwise requires, the following expressions have the following meanings in this annual report: “A Share(s)” listed domestic shares in the share capital of our Company with a nominal value of RMB1.00 each, listed on the Shanghai Stock Exchange and traded in RMB “Articles of Association” or “Articles” the articles of association of CSC Financial Co., Ltd. “Board” or “Board of Directors” the Board of Directors of our Company “BSCOMC” Beijing State-owned Capital Operation and Management Center (北京國有資本經營管理中心) “Central Huijin” Central Huijin Investment Limited (中央匯金投資有限責任公司)
    [Show full text]
  • Mizuho China Business Express Economic Journal (No
    October 27, 2017 Mizuho Bank (China), Ltd. Advisory Division ―The macroeconomy― Mizuho China Business Express Economic Journal (No. 72) Summary Though China’s real GDP growth rate slowed slightly to +6.8% y-o-y in July–September, it remained above the 2017 government’s target of ‘around +6.5%.’ Xi Jinping unveiled his ‘Thought on Socialism with Chinese Characteristics for a New Era’ at the 19th National Congress of the Communist Party of China. In his report, Xi Jinping said that after the Party had finished building a moderately prosperous society in all respects by 2020, a two-step approach should be taken (the first step from 2020 to 2035 and the second step from 2035 onwards) to build China into a ‘great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful’ by the middle of the century. 1. September’s economic indicators improved on the previous month ・ Growth slowed to +6.8% over July–September ・ Production, investment and consumption all accelerated ・ The floor space of residential buildings sold grew at a slower y-o-y pace for the first time since March 2015 ・ Imports and exports both improved ・ CPI growth slowed while PPI growth accelerated ・ Net new loans and total social financing both increased 2. Topics: The economic policy position revealed at the National Congress ・ A change in the ‘principal contradiction facing Chinese society’ ・ Building a ‘great modern socialist country’ by the middle of the century - 1 - 1. September’s economic indicators improved on the previous month ･Growth slowed to +6.8% over July–September On October 19, the National Bureau of Statistics (NBS) announced that China’s real GDP growth rate had hit +6.8% in July–September, down from the +6.9% recorded in April–June (from here on, all figures refer to ‘same- period previous-year’ growth unless otherwise specified).
    [Show full text]
  • China Connect Supplement – Custody
    Goldman Sachs International China Connect Supplement – Custody Peterborough Court 133 Fleet Street, London EC4A 2BB Tel: 44 (0) 20 7774 1000 Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Goldman Sachs & Co. LLC 200 West Street New York, New York 10282-2198 This China Connect Supplement supplements and forms part of website and the SFC website relating to China Connect from the General Terms and Conditions (as defined below). time to time and other relevant sources. Capitalised terms used in this China Connect Supplement 3.3 Goldman Sachs shall have the right to apply any procedures (including any Appendices hereto) will have the meanings given to or requirements in respect of any trading of China Connect such terms in Schedule 1 hereto or otherwise in the General Securities through China Connect which it determines in its Terms and Conditions. In the event of any inconsistency between absolute discretion to be necessary or desirable for the this China Connect Supplement and the General Terms and purpose of any Applicable China Connect Laws or market Conditions, this China Connect Supplement shall prevail with practice. respect to matters prescribed herein. 3.4 Goldman Sachs may, in its absolute discretion, refuse to 1. Application execute any instruction provided by you. 1.1 Notwithstanding any provision in any General Terms and 3.5 You shall provide all information (including translations into Conditions, this China Connect Supplement shall apply, and Chinese, if required) to Goldman Sachs which Goldman Sachs shall be deemed to be accepted by you, where you place an requests in relation to any request or requirement by any order to trade or otherwise deal in, or inform or indicate to China Connect Authority or an exchange, regulatory authority Goldman Sachs that you wish to trade China Connect or any organisation (whether within or outside Hong Kong) Securities through China Connect.
    [Show full text]
  • Eswar S. Prasad February 4, 2016
    CHINA’S EFFORTS TO EXPAND THE INTERNATIONAL USE OF THE RENMINBI Eswar S. Prasad February 4, 2016 Report prepared for the U.S.-China Economic and Security Review Commission CHINA’S EFFORTS TO EXPAND THE INTERNATIONAL USE OF THE RENMINBI Eswar Prasad1 February 4, 2016 Disclaimer: This research report was prepared at the request of the U.S.-China Economic and Security Review Commission to support its deliberations. Posting of the report to the Commission's website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 108-7. However, it does not necessarily imply an endorsement by the Commission or any individual Commissioner of the views or conclusions expressed in this commissioned research report. Disclaimer: The Brookings Institution is a private non-profit organization. Its mission is to conduct high- quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars. 1 Cornell University, Brookings Institution, and NBER. The author is grateful to members and staff of the Commission for their thoughtful and constructive comments on an earlier draft of this report. Audrey Breitwieser, Karim Foda, and Tao Wang provided excellent research assistance. William Barnett and Christina Golubski provided editorial assistance.
    [Show full text]
  • To the Board of Directors of Huatai Securities Co., Ltd. (Incorporated in the People’S Republic of China with Limited Liability)
    Contents 1 About Us 004 Important Notice 006 Definitions 008 Company Profile 014 Summary of the Results 018 Major Events of the Company 2 Operating Analysis and Strategies 024 Summary of the Company’s Business 036 Management Discussion and Analysis 086 Major Events 3 Corporate Governance 114 Changes in Ordinary Shares and Shareholders 120 Directors, Supervisors and Senior Management 124 Corporate Bonds 4 Financial Report and Documents for Inspection 134 Report on Review of Interim Financial Report 211 Index of Documents for Inspection 211 Information Disclosure of Securities Companies 212 Appendix 1 ABOUT US HU AT AI S E CU R I T I E S HU AT AI S E CU R I T I E S Important Notice Definitions Company Profile Summary of the Results Major Events of the Company 004 006 008 014 018 HUATAI SECURITIES IMPORTANT NOTICE I. The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior management of the Company undertake that the information in this interim report is true, accurate and complete and contains no false record, misleading statement or material omission, and assume individual and joint legal liabilities to the information contained herein. II. All Directors of the Company have been present at the Board meeting. III. This interim report has not been audited. IV. Zhang Wei, the person in charge of the Company, Jiao Xiaoning, the person in charge of accounting, and Fei Lei, the officer in charge of the accounting office (head of accounting department), hereby warrant and guarantee that the financial report contained in the interim report is true, accurate and complete.
    [Show full text]
  • 2020 Annual Report Contents
    2020 Annual Report Contents ABOUT US CORPORATE GOVERNANCE i Five-Year Summary 116 Corporate Governance Report 1 Introduction 131 Changes in the Share Capital and ’ 2 Business Performance at a Glance Shareholders Profile Directors, Supervisors, Senior Management 4 Chairman’s Statement 134 and Employees 152 Report of the Board of Directors and MANAGEMENT DISCUSSION AND ANALYSIS Significant Events 170 Report of the Supervisory Committee 8 Customer Development 14 Technology-Powered Business Transformation FINANCIAL STATEMENTS 20 Business Analysis 20 Performance Overview 172 Independent Auditor’s Report 23 Life and Health Insurance Business 179 Consolidated Income Statement 32 Property and Casualty Insurance Business 180 Consolidated Statement of Comprehensive 38 Investment Portfolio of Insurance Funds Income 181 Consolidated Statement of Financial Position 44 Banking Business 183 Consolidated Statement of Changes In Equity 54 Asset Management Business 184 Consolidated Statement of Cash Flows 60 Technology Business 185 Notes to Consolidated Financial Statements 68 Analysis of Embedded Value 79 Liquidity and Capital Resources 85 Risk Management OTHER INFORMATION 100 Sustainability 327 Ping An Milestones 113 Prospects of Future Development 328 Honors and Awards 329 Glossary 332 Corporate Information Cautionary Statements Regarding Forward-Looking Statements To the extent any statements made in this Report contain information that is not historical, these statements are essentially forward- looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates may or may not occur in the future. Words such as “potential”, “estimates”, “expects”, “anticipates”, “objective”, “intends”, “plans”, “believes”, “will”, “may”, “should”, variations of these words and similar expressions are intended to identify forward-looking statements.
    [Show full text]
  • Central China Securities Co., Ltd
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Central China Securities Co., Ltd. (a joint stock company incorporated in 2002 in Henan Province, the People’s Republic of China with limited liability under the Chinese corporate name “中原證券股份有限公司” and carrying on business in Hong Kong as “中州證券”) (Stock Code: 01375) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 The board (the “Board”) of directors (the “Directors”) of Central China Securities Co., Ltd. (the “Company”) hereby announces the audited annual results of the Company and its subsidiaries for the year ended 31 December 2017. This annual results announcement, containing the full text of the 2017 annual report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of annual results and have been reviewed by the audit committee of the Company. The printed version of the Company’s 2017 annual report will be dispatched to the shareholders of the Company and available for viewing on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk, the website of the Shanghai Stock Exchange at www.sse.com.cn and the website of the Company at www.ccnew.com around mid-April 2018.
    [Show full text]
  • Annual Report
    2018 Annual Report Annual Report HUA XIA BANK CO., LIMITED 2018 HUA XIA BANK CO., LIMITED HUA XIA BANK CO., Address: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, Beijing Postal code: 100005 Tel: 010-85238570 010-85239938 Fax: 010-85239605 Website: www.hxb.com.cn CONTENTS 3 Message from Chairman for the Annual Report 2018 5 Message from President for the Annual Report 2018 6 Important Notice 7 Section I Definitions 8 Section II Company Profile and Major Financial Indicators 13 Section III Business Overview 16 Section IV Discussion and Analysis of Operations 53 Section V Significant Events 64 Section VI Details of Changes in Ordinary Shares and Shareholders 74 Section VII Preference Shares 78 Section VIII Basic Information on Directors, Supervisors, Senior Management Members and Employees 89 Section IX Corporate Governance 94 Section X Financial Statements 95 Section XI List of Documents for Inspection 96 Written Confirmation of the Annual Report 2018 by Directors and Senior Management Members of Hua Xia Bank Co., Limited 98 Auditor’s Report 2018 Annual Report Hua Xia Bank Co., Limited Chairman of the Board: Li Minji 2 Message from Chairman for the Annual Report 2018 MESSAGE FROM CHAIRMAN FOR THE ANNUAL REPORT 2018 In 2018, China started to act on the guiding principles Hereby, I would like to extend my sincere gratitude to of the 19th CPC National Congress and celebrated the the public, shareholders, senior management and entire staff 40th anniversary of reform and opening-up, while Hua Xia on behalf of our Party Committee and the Board of Directors.
    [Show full text]