apac forum chinacreditsuisse

8/8/2019 Apac Forum ChinaCreditSuisse

http://slidepdf.com/reader/full/apac-forum-chinacreditsuisse 1/17

Snapshot on China

Credit SuisseAsia Pacific Investor ForumHong Kong

April 2, 2007

Liping Zhang, Country Head China



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.




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




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




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




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




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




China client centricity

Access to international expertise and networks

Local knowledge and customized local delivery

Long-term commitment

Integrated Bank approach




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


October 2005

ICBCUS$22 BN


October 2006

ICBCUS$22 BN


October 2006

Home InnUS$125 MN


October 2006

Home InnUS$125 MN


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


Sole Global Coord. /Joint Bookrunner

September 2006


December 2006

Melco PBL

Joint Bookrunner

US$1.3BN US$455 MM


December 2005

US$455 MM


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


August 2005

US$124 MM


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


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




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




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




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




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




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

apac forum chinacreditsuisse

Documents