BEIJING, Aug. 24, 2018 /PRNewswire/ -- China International Capital Corporation Limited ("CICC" or "the Group", Stock code: 3908.HK) announced its interim results for the first half of 2018 ended June 30, 2018. During the first half of 2018, CICC's revenue and profit increased significantly compared with the same period of last year. The Group realized total revenue and other income of RMB8,813 million, representing an increase of 51.5% compared with the first half of 2017, net profit of 1,631(Note) million, representing an increase of 46.8% compared with the first half of 2017. In particular, the FICC business achieved a substantial growth, and the revenue of investment banking business and equities business also continued to grow. Acquisition of CISC also had a certain positive impact on the Group's revenue and profit.
The Group's asset structure remained relatively stable, and asset quality and liquidity remained healthy. As at June 30, 2018, total assets of the Group amounted to RMB263,902 million, representing an increase of RMB26,089.9 million or 11.0% compared with the end of 2017.
For the first half of 2018, CICC's investment banking business maintained market leading franchise. The equities and FICC businesses witnessed solid progress in business transitioning. The wealth management continued to be dedicated to providing quality services to customers. The investment management business witnessed steady AUM expansion and improvement of active management capabilities. CICC Group delivered strong operating results thanks to a well-balanced business mix.
| Note: Net profit refers to profit for the period attributable to shareholders of the Company and holders of other equity instruments. |
Investment Banking
CICC further enhanced full value chain services, brand influence and capacity to serve the domestic and overseas financing demand of PRC-based companies. It also seized the opportunities from major policy changes to strengthen product innovation to maintain competitiveness in the A-share as well as the Hong Kong markets.
During the first half of 2018, CICC ranked as No.1 underwriter for A-share IPOs, achieved good results in terms of US IPOs of PRC-based companies, ranked No.3 underwriter among Chinese securities firms for domestic bond offerings, and ranked No. 1 among Chinese securities firms for overseas investment-grade USD bond offerings by Chinese issuers. CICC was again No.1 financial advisor for domestic mergers and acquisitions, reinforcing its leading position in the domestic M&A market. During the first half of 2018, CICC opened an office in Frankfurt and expanded its presence in the overseas capital market. It will continue to provide quality cross-border financing and advisory services to domestic and foreign clients.
Equities
During the first half of 2018, the equities business continued to implement its strategy of deepen Chinese roots and expand global reach. By capitalizing on our quality domestic and overseas institutional client base, it further enhanced its global platform for asset allocation. Despite market volatility and stringent regulations, the equities business delivered good results at home and abroad. It continuously enhanced product innovation, fully demonstrated cross-border strengths, and significantly enhanced its capabilities of prime brokerage, equity derivatives and synthetic equity financing.
FICC
During the first half of 2018, the FICC business significantly improved its comprehensive service capability, and witnessed solid progress in client business. It delivered strong results from client trading and structured product business, and maintained a steady growth and leading market share in asset backed securitization. Its trading teams demonstrated strong trading and risk management capabilities, and achieved sound returns by prudently capturing market opportunities.
Wealth Management
In the first half of 2018, the wealth management business continued to be dedicated to providing quality services to clients with particular focus on asset allocation. It focused on leveraging the online platform and offline network to provide integrated wealth management services and solutions tailored to address clients' needs for asset allocation.
Capitalizing on CICC's research platform, the wealth management business further strengthened capital market coverage to provide more timely and professional analysis to clients. In line with changing market conditions and clients' needs, it has created a wealth management product platform with CICC features. CICC will continue to expand investment in intelligent systems, to build a customer-centered wealth management service system. At the same time, CICC accelerated the pace of integration with CISC. It strengthened product support, resource sharing, and encouraged communication and experience sharing with CISC, to ensure smooth business transitioning and materialize potential synergies from integration with CISC.
Investment Management
The investment management business has made continuous progress in platform development. It has taken a number of strategic initiatives to promote cross-departmental collaboration to strengthen key capabilities and gather assets. By diversifying product lines, enhancing service quality, and strengthening investment research, it has built a solid foundation for sustainable and scalable development. CICC asset management continued to rank among top players in the market by size of assets under active management. CICC private equity has established a comprehensive and open platform, with AUM growing steadily. As of June 30, 2018, the Group had approximately RMB686 billion assets under management.
Research
CICC research team covers global markets and provides services to clients both at home and abroad through CICC's offices and platforms across the world. The scope of its research products and investment analysis ranges from macro economy and market strategy to asset allocation, equities, commodities, and derivatives. As of June 30, 2018, CICC research team employed a high-caliber team of more than 100 experienced professionals, and covered more than 40 sectors as well as over 1,000 stocks listed in mainland China, Hong Kong, New York and Singapore.
About China International Capital Corporation Limited (CICC)
China International Capital Corporation Limited (CICC, 3908.HK) is China's oldest joint-venture investment bank. Since CICC's inception in 1995, we have been consistently committed to providing high-quality, value-added financial services to our clients. We have established full-service business model offering investment banking, equities, FICC, wealth management and investment management, all on the basis of strong research coverage. In 2015, CICC listed on the Main Board of the Hong Kong Stock Exchange. In 2017, CICC completed a strategic restructuring with China Investment Securities (CISC) through which CISC became a wholly-owned subsidiary of CICC. CICC is headquartered in Beijing with subsidiaries throughout mainland China, company branches in major cities including Shanghai and Shenzhen, and more than 200 securities branches in 28 provinces and municipalities nationwide. CICC is also active overseas with branches in Hong Kong, New York, Singapore, London, San Francisco and, most recently Frankfurt.
