Since the beginning of 2009, the securities underwriting business of ICBC has demonstrated a strong growth: during the first half of the year, ICBC has been the main underwriter for 36 issuance projects of non-financial corporate debt financing and financial debt, such as short-term financing bill and medium-term notes; it has also been a participating underwriter for 64 projects and a distributor for up to 100 projects.
During the half year, ICBC as the main underwriter has underwritten securities worth of RMB 142.4 billion, up 140% compared to the same period of last year, among which the total amount of issuance of non-financial corporate debt financing, such as short-term financing bill and medium-term notes, is worth RMB 139.
4 billion, taking 24% of the market share. All this shows that ICBC is further expanding its leading position in the market of securities underwriting business.
ICBC's official who is responsible introduces that, the fact that this year ICBC's securities underwriting business can maintain sound development in the fierce market competition is attributable to the following three factors:
First of all, ICBC has been continuously promoting the securities underwriting business, considering it as an important means to help the bank overcome the difficulties brought by the international financial crisis. Hence ICBC further diversifies the channels of corporate financing in order to provide strong capital support for the development of the physical economy, while the business is also of great significance to the prevention of financial risks.
For enterprises, financing through bond issuance can not only reduce their dependence on banks for financing, enrich their financing channels, make up for the lack of funds, and improving the capital adequacy ratio, but also effectively lower their financing cost and optimize the overall debt structure.
For banks, the development of securities underwriting business reduces their reliance on the margin of deposit and loan interest for generating revenue, hence realizing the transformation of operation and development models. Furthermore, the development of securities underwriting business can also effectively enhance the growth of the Chinese bond market as it greatly facilitates enterprises to fulfill direct financing in the market.
In this way, it is conductive to changing the current situation in which direct financing takes too low a proportion in the financial structure, while the proportion of bank loan to the overall social financing amount is still relatively high.
Secondly, along with the dominance of the Chinese financial regulators and the full participation of the market members, China's inter-bank bond market has been developing rapidly with numerous innovations. In particular, the non-financial corporate debt financing instrument, represented by medium-term notes and short-term financing bill, is already a highly market-oriented business with an integrate process including registration record, pricing, issuing and listing.
Moreover, ICBC's leading position in the market of securities underwriting business also adequately reflects the market's and clients' recognition and affirmation of the bank's financial service capability.
Meanwhile, ICBC's solid strength in securities underwriting business is also strongly bolstering the swift and sound development of the business. At the present, ICBC has established a complete and effective process for the securities underwriting business as well as a professional team, and in addition, it will make full use of its extensive branches to provide clients with integrate, professional and high-quality services of securities underwriting.
Besides, during the process of securities underwriting, ICBC also emphasizes the analytical research of the macro-economy, financial policies and bond market, so as to constantly optimize the issuance and distribution mechanism, perfect the underwriting network, and improve the pricing ability, ultimately to guarantee the successful issuance of each project and fulfill the benefit maximization of bond issuance for clients.
According to this official, the year 2009 has been witnessing a rapid growth of China's bond market. Therefore, in the second half of the year, ICBC will continue to vigorously promote the securities underwriting business, actively take advantage of the new opportunity for commercial banks brought by the direct financing market, and thus offer clients more qualified and effective services of securities underwriting.
