Apac Forum ChinaCreditSuisse
Transcript of Apac Forum ChinaCreditSuisse
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Snapshot on China
Credit SuisseAsia Pacific Investor ForumHong Kong
April 2, 2007
Liping Zhang, Country Head China
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 2
Cautionary statement
Cautionary statement regarding forward-looking and non-GAAP information
This presentation contains forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties, and we might not beable to achieve the predictions, forecasts, projections and other outcomes we describeor imply in forward-looking statements.
A number of important factors could cause results to differ materially from the plans,
objectives, expectations, estimates and intentions we express in these forward-lookingstatements, including those we identify in "Risk Factors" in our Annual Report on Form20-F for the fiscal year ended December 31, 2006 filed with the US Securities andExchange Commission, and in other public filings and press releases.
We do not intend to update these forward-looking statements except as may be requiredby applicable laws.
This presentation contains non-GAAP financial information. Information needed toreconcile such non-GAAP financial information to the most directly comparable measuresunder GAAP can be found in Credit Suisse Group's Quarterly Report 2006/Q4.
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 3
China – Phenomenal economic growth
China’s GDP is rapidly catching up with U.S. and Europe
2006 Nominal and Real PPP adjusted GDP Historical and projected Real GDP CAGR
Source: Economist Intelligence Unit
13,235 13,626
2,681
10,7159,887
8,166
US EU15 China
2.8%
1.5%
9.9%
2.6%2.1%
8.8%
US EU15 China
(USD bn)
2006 Real PPP GDP2006 Nominal GDP 2001-2005 GDP CAGR 2006-2010 Projected GDP CAGR
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 4
1,000
2,000
3,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Growth of market capitalization in A, B and H shares
Market Caps (in USD bn)
CAGR18%
Sources: Standard & Poors: Global Stock Markets Factbook
Hong Kong Stock Exchange
Shanghai and Shenzhen Stock Exchange
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 5
A-share Market Turnover(USD bn)
Domestic capital market is growing rapidly…
Domestic market capitalization
Source: CS research, SDC, FactSet
(USD bn)
463
1,145
2,259
2002 2006 2010E
CAGR22%
Mkt cap /GDP
32% 44% 50%
352
1,163
1,581
2002 2006 2010E
CAGR21%
Indexed Stock Market Performance
1/1/06 3/30/06 6/27/06 9/22/06 12/22/06 3/21/07
50
100
150
200
250
300
MSCI Asia
Nikkei 225
Dow Jones 30
Hang Seng
China Shanghai
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 6
Credit Suisse “One Bank” China footprint
1955: Started correspondent banking relationship withBank of China
1985: Opened a bank representative office in Beijing
1993: Opened Beijing Securities Representative Office
1994: Opened Shanghai Bank Branch
1998: Shanghai Bank Branch received approval to engagein RMB business
2003: Approved as a QFII (current quota of USD500m)
2004: Shanghai Branch received Derivatives License
2005: Opened Shanghai Securities Representative Office
Opened Guangzhou Bank Representative Office
Launched asset management JV with ICBC
China Renaissance Capital formed in the CaymanIslands focusing on Chinese private equityinvestments
2006: Shanghai Branch approved as a QDII (a quota ofUSD300m granted in 2007)
In China for more than half a century
CS Bank Representative Office
CS Bank Branch
CS Securities Representative Office
Beijing
Shanghai
Guangzhou
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 7
Delivering “One Bank” capabilities
PB IB33%
67%
“One Bank” structure Volume of successful referrals in 2006
InvestmentBanking AssetManagement
Country
Manager
PrivateBanking
Increased cross-divisional integration yields substantial new business in China
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 9
China client centricity
Access to international expertise and networks
Local knowledge and customized local delivery
Long-term commitment
Integrated Bank approach
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 10
1
1
2006 Best Equity Housein China
Leading equity house – strong platform for One Bank
business
CCBUS$9.2 BN
Initial Public OfferingJoint Bookrunner
October 2005
CCBUS$9.2 BN
Initial Public OfferingJoint Bookrunner
October 2005
ICBCUS$22 BN
Initial Public OfferingJoint Bookrunner
October 2006
ICBCUS$22 BN
Initial Public OfferingJoint Bookrunner
October 2006
Home InnUS$125 MN
Initial Public OfferingJoint Bookrunner
October 2006
Home InnUS$125 MN
Initial Public OfferingJoint Bookrunner
October 2006
CNOOCUS$2.0 BN
Block TradeJoint Bookrunner
April 2006
CNOOCUS$2.0 BN
Block TradeJoint Bookrunner
April 2006
New OrientalUS$129 MN
Initial Public Offering
Sole Global Coord. /Joint Bookrunner
September 2006
New OrientalUS$129 MN
Initial Public Offering
Sole Global Coord. /Joint Bookrunner
September 2006
Initial Public Offering
December 2006
Melco PBL
Joint Bookrunner
US$1.3BN US$455 MM
Initial Public OfferingJoint Bookrunner
December 2005
US$455 MM
Initial Public OfferingJoint Bookrunner
December 2005
Block Trade
US$859 MM
November 2006
Sole Bookrunner
US$416 MMFollow-on
Joint GlobalCoordinator Joint
Bookrunner
June 2006
Focus Media
US$124 MM
Initial Public OfferingJoint Bookrunner
August 2005
US$124 MM
Initial Public OfferingJoint Bookrunner
August 2005
US$224 MM
Sole Bookrunner
Hopson
US$350 MMFixed Rate Notes due2012 non-call 2009
Bookrunner
November 2005
Hopson
US$350 MMFixed Rate Notes due2012 non-call 2009
Bookrunner
November 2005
Initial Public Offering
December 2006
Ming An
Sole GlobalCoordinatorBookrunner
US$195 MM US$187 MMInitial Public Offering
Sole GlobalCoordinator
& Bookrunner
April 2006
US$187 MMInitial Public Offering
Sole GlobalCoordinator
& Bookrunner
April 2006
Block Trade
November 2006
China Power Shanghai Electric
US$648 MM
Initial Public OfferingSole Bookrunner
April 2005
Shanghai Electric
US$648 MM
Initial Public OfferingSole Bookrunner
April 2005
1Bookrunner of Industrial &Commercial Bank of China in2006, largest IPO ever (US$22bn)
Bookrunner of ChinaConstruction Bank, largest IPO in
2005 (US$9.2bn)
Bookrunner of Shanghai Electricin 2005, largest sole-bookrun IPOin China since 1997 (US$648m)
1 CNOOC Ltd. follow-on offering ofUS$ 1.98 bn in 2006 – Largestsecondary offering by a red-chipcompany ever
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 11
Successful fixed income franchise
First-ever Securitization of non-performing loans in China (April 2004)
1st dual currency mortgage loan to Morgan Stanley Real Estate Fund in August 2005
Largest commercial real estate loan in China by a foreign lender in 2006
Dominant in interbank bond and repo market amongst foreign banks and a leading
derivatives player
One of the first foreign banks to receive Derivatives Licence in 2004, and is now
approved to engage in RMB FX FWDs, FX swaps, RMB IRS and a variety of structured
investment products
One of the first foreign banks to offer derivative products to the Chinese government
and corporates
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 12
Leading M&A practice
Haier GroupUS$193 million
Reverse Takeover ofHaier-CCT Holdings Ltd.
through asset injection ofwashing machine and mobile
business of Haier Group
Financial Advisor
2005
Guangshen Railway
US$1.2 billion
Acquisition ofYang Cheng Railway Company
2005
US$325 million
Acquisition of
Financial Advisor
2005
China Netcom Corp
US$1.4 billion acquisition ofassets in 4 provinces
Independent FinancialAdvisor
2005
EUR400 million
Sale of silicones business to
Financial Advisor
2006
Exclusive Financial Advisor
2006
Acquisition of
US$300 million
US$1,900 millionSale of Kazakhstan assets to
Financial Advisor
2006
Financial Advisor
2006
Sale to
US$100 million
Financial Advisor
2006
Acquisition of
US$180 million
Cross border transactions are becoming increasingly important toour M&A franchise in China
US$200 millionAcquisition of
Financial Advisor
2005
EUR400 millionAcquisition of
Financial Advisor
2006
China
Not disclosed
Financial Advisor
2007
Domestic Deals Cross-Border Deals
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 14
Asset Management JV
NPL Securitization
Trade Finance
Equity Products
Derivatives
International IPO
QFII*
Private Banking
Fixed IncomeProducts
Training Programs
One Bank Case Study - AM JV with ICBC
QFII: Qualified Foreign Institutional Investor
ICBC is an illustrative example of a mutually rewarding partnership delivering onclients needs across all divisions
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 1
One Bank Case Study - Qualified Domestic InstitutionalInvestors (QDII) – Client coverage strategy
Investment
Banking
Asset
ManagementLeverage AM JV partnership
Leverage IB relationships
Fund managers
Brokerages
Commercial banks
Private
BankingLeverage PB relationships
Foreign fundedenterprises and local
SMEs
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 16
Strategic focus: 2007 and beyond
PrivateBanking
Leverage Shanghai branch to develop onshore business and explore other onshoreopportunities
Leverage existing Guangzhou and Beijing offices to develop and maintain clientrelationships
Investment
Banking
Build on momentum as one of the most profitable China investment bankingfranchises
Maintain leadership in ECM
Strengthen M&A, HY, RMB, DMR and structured lending
Continue to leverage derivatives license of Shanghai branch
Develop domestic securities capabilities
Asset
Management
Continue to leverage JV with ICBC
Develop QDII and QFII product and distribution opportunities
Pursue mandate business from China corporates and pension clients
Further develop private equity franchise
Premier client-focused integrated bank
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Credit Suisse Asia Pacific Investor ForumSnapshot on China – Slide 17