From today, Huaying is licensed to underwrite and sponsor stocks and bonds issued in mainland China, tapping China’s huge and growing investment banking market.
In 2010, China was the world’s largest IPO market, with 346 companies raising USD83.7 billion through initial public offerings in the domestic A-share market, a 160% increase from the previous year in terms of capital raised. China also held the world’s largest domestic corporate investment grade bond market ranking, with over USD137 billion issuance last year, ahead of Japan and the United States. The overall debt capital market in China reached USD875.6 billion, making it the third biggest globally.
Huaying has received a securities license from the China Securities Regulatory Commission (CSRC) and a business license from the State Administration of Industry and Commerce (SAIC). Huaying is based in Wuxi, a booming city, bordering Shanghai, in the centre of China’s economically powerful Jiangsu Province, with capabilities to source investment banking businesses from across the country.
Mr. John McCormick, RBS’s Asia Pacific Chairman, said: "Opening for business today, this joint venture marks another milestone for RBS and its business in Asia Pacific, reflecting our continued commitment to this region. RBS has built one of the most comprehensive range of services offered by a foreign bank operating in China and this securities joint venture completes the last piece of our jigsaw puzzle. China is a core market for RBS and this joint venture allows us to participate fully in the opening up of China’s securities market, and to serve the needs of our global, Asian and Chinese clients."
Mr. Lei Jianhui, Chairman of Guolian Securities Company Limited, said: "It is the ambition of Guolian to become a leading securities house in China. By setting up Huaying Securities together with RBS, a UK bank operating in China for over a century with internationally renowned financial services capabilities, we are getting closer to that goal. We are confident that with the mutual effort from both sides of the partnership, as well as the team in our securities JV, Huaying will become a leading Chinese securities house with international vision and expertise."
Established in September 1992, Guolian Securities Co. provides a wide range of security brokerage and financial advisory services across 40 branches in key cities in China. The company has led the following key transactions this year:
- RMB1.5 billion "11 Sanmenxia bond" issuance as lead underwriter
- Jiangsu Tianze InfoIndustry’s RMB686.5 million GEM IPO
- RMB1 billion corporate bond issuance for Taizhou Municipal Road & Bridge Public Assets Investment & Administration Co., Ltd. as lead underwriter
- Lead underwriter and sponsor for Shandong Longli IPO, which got the approval from CSRC
RBS provides a wide range of services in China through a locally incorporated bank and leasing companies alongside joint ventures - a trust joint venture with Suzhou Trust and a futures joint venture with Galaxy Futures. RBS has been a prominent player in capital markets in Greater China in 2011:
- RBS has helped 11 companies to raise close to 11 billion in the offshore Renminbi (RMB) bond market and is currently ranked #2 bookrunner in the offshore RMB bond market
- RBS has also raised a combined USD800 million of new money for Chinese clients, representing about half of the international equity-linked issuance volume by listed Chinese companies year-to-date
- RBS was one of the primary dealers in Hong Kong for China’s last Sovereign RMB Bond Auction