China Equity Capital Markets Review FIRST HALF 2019 | MANAGING UNDERWRITERS & LEGAL ADVISORS China Equity Capital Markets Review First Half 2019 | Overall Review Deals Intelligence China Equity Capital Markets Issuance - Issue Type Composition $120.0 450 CHINA EQUITY CAPITAL MARKET FALLS 14.3% FROM THE FIRST HALF OF 2018 Chinese equity and equity-related (ECM) proceeds this during the first half of 2019 reached US$66.8 billion, a 14.3% decrease from the same period last year. Total initial public offerings (IPOs) issued by China-domiciled companies raised an aggregate amount of US$19.6 400 billion, a 30.4% decline in proceeds compared to the first half of 2018, and the lowest first half period since 2016 (US$12.1 billion). $100.0 Chinese convertibles, or equity-related issuance, witnessed a record first half period and raised US$30.9 billion so far this year, up 350 110.3% from the same period in 2018. This is the highest ever semi-annual period for Chinese convertibles, in terms of proceeds, surpassing the record high set in the second half of 2017 (US$18.2 billion). Companies in the Financial sector accounted for 30.0% of $80.0 300 China's ECM issuance during the first half of 2019, up 91.0% in proceeds from a year ago. CHINESE A-SHARE ECM HITS FIVE-YEAR LOW 250 Chinese A-share ECM proceeds reached US$37.8 billion in the first half of 2019, down 3.8% compared to the same period last year. This $60.0 is the lowest first half period since 2014 (US$25.0 billion). IPOs issued in A-share market raised a total amount of US$9.0 billion, down 200 30.3% compared to the same period in 2018 (US$12.9 billion). A-Share convertibles reached an all-time high, raising a total of US$22.6 billion in proceeds, a 132.6% increase from the first half of 2018 (US$9.7 billion). ECM offerings from the Financial sector registered a $40.0 150 152.8% increase compared to a year ago and accounted for 39.0% of overall A-share activity during the first half of 2019. 100 CHINESE OVERSEAS ECM FALLS 24.9% Chinese overseas ECM proceeds totaled US$29.0 billion during the first half of 2019, a 24.9% decline compared to the first half of 2018 $20.0 (US$38.6 billion). IPOs rasied through overseas markets totaled US$10.6 billion, down 30.4% from the same period in 2018 (US$15.3 50 billion). Convertibles proceeds reached US$8.3 billion, a 66.6% increase from the same period last year. Companies from the High Technology sector raised US$6.5 billion, declined 59.4% compared to a year ago (US$16.1 billion). $0.0 0 1H'10 1H'11 1H'12 1H'13 1H'14 1H'15 1H'16 1H'17 1H'18 1H'19 IPO (US$bil) Follow-On (US$bil) Convertible (US$bil) # of Issues Top China Equity & Equity-Related Deals China Equity Capital Markets - Macro Industry Composition Securities Listing Proceeds Issue Date Issuer Name Issue Type Macro Sector Stock Exchange (US$mil) 02/27/2019 China CITIC Bank Corp Ltd Shanghai 4,422.4 Convertible Financials 04/02/2019 China Three Gorges Corp None 2,677.7 Convertible Energy and Power $14.8 25 01/16/2019 Ping An Bank Co Ltd Shenzhen Main 2,654.5 Convertible Financials $20.0 03/11/2019 Bank of Jiangsu Co Ltd Shanghai 2,139.8 Convertible Financials Financials 55 02/08/2019 Pinduoduo Inc Nasdaq 1,581.3 Follow-On High Technology 111 High Technology 02/27/2019 China CITIC Bank Corp Ltd Shanghai 1,550.7 Convertible Financials Energy and Power 06/14/2019 Huatai Securities Co Ltd London 1,384.0 Follow-On Financials $5.7 Industrials Healthcare 03/25/2019 iQIYI Inc Nasdaq 1,200.0 Convertible High Technology Others 18 01/16/2019 Ping An Bank Co Ltd Shenzhen Main 1,184.1 Convertible Financials 04/26/2019 Ningxia Baofeng Energy Group Co Ltd Shanghai 1,090.9 IPO Energy and Power $6.7 29 42 04/04/2019 China Vanke Co Ltd Hong Kong 994.5 Follow-On Real Estate $11.3 04/10/2019 China National Nuclear Power Co Ltd Shanghai 920.3 Convertible Energy and Power $8.3 Outer Ring: Proceeds (US$bil) 03/11/2019 Bank of Jiangsu Co Ltd Shanghai 802.5 Convertible Financials Inner Ring: # of Issues www.refinitiv.com/dealsintelligence China Equity Capital Markets Review First Half 2019 | Chinese A-Share & Overseas Chinese A-Share Equity & Equity-Related Volume Chinese A-Share Equity Capital Markets by Industry Top Chinese A-Share IPO Deals $60 350 Issue Issuer IPO Listing Proceeds Issue Macro Date Name Exchange (US$mil) Type Sector Ningxia Baofeng Energy 300 04/26/19 Shanghai $1,090.9 IPO Energy and Power $50 $6.0 Group Co Ltd CNOOC Energy 9 06/12/19 Shanghai $495.1 IPO Energy and Power Technology & Services Ltd 250 Shenzhen $40 50 06/25/19 Bank of Suzhou Co Ltd $266.6 IPO Financials 33 SME $2.8 Financials $14.7 200 Qingdao Rural Commercial Shenzhen Industrials 02/18/19 $227.6 IPO Financials $30 Bank Corp SME Energy and Power 150 01/21/19 Bank of Xi'an Co Ltd Shanghai $275.6 IPO Financials High Technology $20 Materials 14 Qingdao Port International Follow- $4.7 01/08/19 Shanghai $275.1 Industrials 100 Others Co Ltd On Zhejiang Sanmei Chemical 03/19/19 Shanghai $259.8 IPO Materials $10 27 Industry Co Ltd 50 Shenzhen 35 05/08/19 Hitevision Co Ltd $238.6 IPO High Technology SME $0 0 $4.8 Shenzhen $4.8 04/15/19 Lakala Payment Co Ltd $178.7 IPO Financials 1H'10 1H'11 1H'12 1H'13 1H'14 1H'15 1H'16 1H'17 1H'18 1H'19 ChiNext Outer Ring: Proceeds (US$bil) Ming Yang Smart Energy IPO (US$bil) Follow-On (US$bil) Convertible (US$bil) # of Issues 01/09/19 Shanghai $173.2 IPO Industrials Inner Ring: # of Issues Group Ltd Chinese Overseas Equity & Equity-Related Volume Chinese Overseas Equity Capital Markets by Industry Top Chinese Overseas IPO Deals $50 120 Issue Issuer IPO Listing Proceeds Issue Macro Date Name Exchange (US$mil) Type Sector Follow- $45 06/14/19 Huatai Securities Co Ltd London $1,384.0 Financials 100 On $40 $6.5 Shenwan Hongyuan Group Follow- $7.4 04/18/19 Hong Kong $798.0 Financials 20 Co Ltd On $35 Hansoh Pharmaceutical 80 High Technology 06/05/19 Hong Kong $587.9 IPO Healthcare Group Co Ltd $30 41 Financials 05/16/19 Luckin Coffee Inc Nasdaq $645.2 IPO Retail $25 60 Healthcare China East Education Consumer 16 06/04/19 Hong Kong $47.6 IPO $20 Holdings Ltd Products and Energy and Power 40 05/21/19 Xinyi Energy Holdings Ltd Hong Kong $336.3 IPO Energy and Power $15 $2.2 Consumer Products and Services $5.3 $10 Others 06/19/19 Jinxin Fertility Group Ltd Hong Kong $155.9 IPO Healthcare 20 14 $5 18 4 02/20/19 CStone Pharmaceuticals Hong Kong $204.2 IPO Healthcare $3.5 Haitong UniTrust $0 0 05/26/19 Hong Kong $179.3 IPO Financials 1H'10 1H'11 1H'12 1H'13 1H'14 1H'15 1H'16 1H'17 1H'18 1H'19 $4.0 International Leasing Co Outer Ring: Proceeds (US$bil) Consumer IPO (US$bil) Follow-On (US$bil) Convertible (US$bil) # of Issues 02/01/19 Maoyan Entertainment Hong Kong $194.7 IPO Inner Ring: # of Issues Products and Note: Both top Chinese A-share and overseas IPO deals rankings include original IPOs and first-time listings which are technically classified as follow-on offers in Refinitiv database. www.refinitiv.com/dealsintelligence ChiChina EEquity it CCapital it l MMarkets k t RReview i First Half 2019 | Managing Underwriters Chinese A-Share Equity & Equity- Chinese Overseas Equity & Equity- All Chinese Equity & Equity-Related YoY Change ($) -14% QoQ Change ($) -10% Related YoY Change ($) -4% QoQ Change ($) -54% Related YoY Change ($) -25% QoQ Change ($) 110% Rank Rank Proceeds Market Mkt. # of Rank Rank Proceeds Market Mkt. # of Rank Rank Proceeds Market Mkt. # of Bookrunner Bookrunner Bookrunner 2019 2018 US$mil Share Sh. Chg Deals 2019 2018 US$mil Share Sh. Chg Deals 2019 2018 US$mil Share Sh. Chg Deals CITIC 1 4 7,703.5 11.5 4.5 31 CITIC 1 3 6,729.7 17.8 5.822 Morgan Stanley Huaxin Securities 1 1 3,691.6 12.7 -3.8 29 Goldman Sachs & Co 2 1 6,158.5 9.2 -0.1 22 China International Capital Co 2 1 3,674.3 9.7 -6.512 Goldman Sachs & Co 2 2 3,629.2 12.5 -1.3 17 China International Capital Co 3 2 5,434.9 8.1 -0.6 31 China Securities Co Ltd 3 2 3,198.4 8.5 -3.821 Credit Suisse 3 6 2,126.7 7.3 2.9 19 Morgan Stanley Huaxin Securities 4 3 3,848.3 5.8 -2.5 30 Bank of China Ltd 4 18 2,544.6 6.7 5.55 China International Capital Co 4 19 1,760.6 6.1 5.0 19 China Securities Co Ltd 5 5 3,839.7 5.8 -0.9 28 Goldman Sachs & Co 5 6 2,529.3 6.7 1.85 JP Morgan 5 5 1,467.9 5.1 0.1 10 Bank of China Ltd 6 18 2,733.3 4.1 2.7 12 China Merchants Securities Co 6 9 1,640.9 4.3 1.3 9 Haitong Securities Co Ltd 611 1,466.6 5.1 3.1 24 UBS 7 11 2,715.3 4.1 1.6 16 Guotai Junan Securities 7 5 1,436.0 3.8 -1.5 8 Citi 7 4 1,380.1 4.8 -6.0 20 Haitong Securities Co Ltd 8 15 2,344.3 3.5 1.9 29 UBS 8 24 1,383.2 3.7 3.0 3 UBS 8 7 1,332.0 4.6 0.3 13 Citi 9 6 2,276.1 3.4 -2.8 23 Citi 9 16 896.0 2.4 0.8 3 Bank of America Merrill Lynch 9 3 1,023.7 3.5 -8.4 6 Credit Suisse 10 14 2,126.7 3.2 0.9 19 Huatai Securities Co Ltd 10 4 887.4 2.4 -4.3 4 Huatai Securities Co Ltd 10 24 986.1 3.4 2.6 5 China Merchants Securities Co 11 13 1,948.8 2.9 0.5 13 Haitong Securities Co Ltd 11 17 877.7 2.3 1.16 CITIC 1112 973.8 3.4 1.4 9 Guotai Junan Securities 12 9 1,933.1 2.9 -0.5 18 Dongxing Securities 12 11 836.0 2.2 -0.310 HSBC Holdings PLC 12 9 944.1 3.3 1.0 7 Huatai Securities Co Ltd 13 8 1,873.5 2.8 -1.0 9 GF Securities 13 12 789.2 2.1 0.19 China Securities Co Ltd 13 21 641.3 2.2 1.2 7 JP Morgan 14 10 1,523.1 2.3 -0.3 11 Guosen Securities Co Ltd 14 8 767.9 2.0 -1.23 China Merchants Bank 14 8 555.1 1.9 -0.5 9 Ping An Securities Ltd 15 33 1,145.2 1.7 1.2 3 Changjiang Securities Co Ltd 15 26 763.4 2.0 1.4 5 Deutsche Bank 15 14 539.7 1.9 0.2 8 Bank of America Merrill Lynch 16 7 1,023.7 1.5 -4.4 6 Ping An Securities Ltd 16 25 641.7 1.7 1.0 1 Ping An Securities Ltd 16 34