Hong Kong and Mainland IPO - Deloitte · 2020-03-20 · In 1H/2014, the following economic and political developments shaped the trends of Mainland and Hong Kong capital markets:

Hong Kong and Chinese Mainland IPO Markets

National Public Offering Group 31 December 2014

2014 Review and 2015 Outlook

In 1H/2014, the following economic and political developments shaped the trends of Mainland and Hong Kong capital markets:

U.S. economic indicators continued to be positive and tapering of bond purchase was in line with market expectation. But market turned volatile due to increasing risk of interest rate hike ahead of schedule.

Following continued slowdown of China’s economic statistics for months, mini-stimulus and targeted cuts in reserve ratio requirement (RRR) were introduced in Q2.

Market’s concern over liquidity of Mainland capital market, and how downward pressure of the economy and weakening property market would impact income of local governments and raise risk of local defaults in China.

The Two Sessions set the priorities for 2014 and the country would introduce more reform measures. At the same time, the mild adjustment in new policy for new share issuance has brought speculation over whether meetings of Public Offering Review Committee would be re-adjourned, the time for re-activating IPO activities, and if the market has sufficient liquidity to support new listings.

Russia might face sanctions from European Union and U.S. against its military intervention in Ukraine. Market believed that the economic sanctions would blow the European economy.

2

Unstable situation in Iraq

©2015. For information, contact Deloitte China.

In 2H/2014, global economy and political situations of numerous countries impacted Mainland and HK capital markets:

U.S. Fed announced exit of QE3, but will maintain low interest rate for a long time. With improvement in employment, market expects interest rate to be raised in Q2 of 2015.

The People’s Bank of China’s decision to cut deposit and loan rates of financial institutions failed to excite economic performance. Market anticipated full cut in RRR/ interest rate to support market liquidity and a relaxed monetary policy.

Signs of economic slowdown were strengthening as several Chinese economic indicators weakened for months and some hit new low for months. The central government has stepped up its effort in supervising local debt issue.

The State Council meetings, APEC CEO Summit, and Central Economic Work Conference set several economic development and reform policies, including nine areas of ‘new normal’ economic growth, state-owned enterprise reform, acceleration of new share issuance reform to registration-based regime, raise in timely supply of new shares proposed by China Securities Regulatory Commission as well as ChiNext reform, etc.

Performance of Eurozone economy slipped, resulting in lowering of GDP forecast for 2014 and 2015. The market was in a hope that economy and employment would be stimulated by nearly 2,000 investment projects from European Commission.

3

In the face of sanctions by Europe and U.S. and plunge in oil price to five-and-a-half-year low, Ruble was hit. Russia is expected to face recession next year.

Both official launch timetable and turnover of Shanghai-HK Stock Connect fall short of market expectation.


Review of IPO Market in 2014-Hong Kong

4 香港及中国大陆IPO市场 - 2014年上半年回顾与展望

12354

786910

No. of IPOs and funds raised exceeded market expectation

IPO proceeds climbed further to close to 2009 level

Top 5 IPOs rose more than 30% against last year

No. of jumbo IPOs and their proceeds were the highest since 2011

Over-subscription rates of top 5 IPO were significantly higher than last year

IPOs with price-to-earning ratios of more than 20 times increased

by 15 percentage points

Companies from unique sectors continued to come to list in HK, including China’s first nuclear power company (CPN Power), Asia’s largest integrated funeral service provider (Nirvana Asia), etc.

No. of listing applications exceeded last year

No. of H-share listings reached historical high

No. of IPOs hit historical height

HK’s IPO Performance in 2014 Reached Another Level

Source: Hong Kong Stock Exchange (HKEx), Deloitte analysis; excludes the transfer of listings from Growth Enterprise Board to the Main Board and proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

©2015. For information, contact Deloitte China. 5

48new listings，raising HK$ 81.3 billion (↑105%)

( 1H/2013:22 new listings, raising HK$39.7billion)

Proceeds were more than doubled that of the same

period of 2013，showing the strongest performance in the first half year.

HK's IPO market performed strongly in 1H/2014

Source: Hong Kong Stock Exchange, Deloitte Analysis; as of 30 June 2014, excludes the transfer of listings from Growth Enterprise Board to the Main Board and proceeds do not include the green-shoe options of 13 newly-listed companies which did not announced their stabilization actions by 30 June 2014

6©2015. For information, contact Deloitte China.

115 IPOs raising HK$227.7 billion (↑35%)

(2013: 104 IPOs raising HK$168.9 billion)

The funds raised over the year were close to HK$248.2 billion in

2009. Among the total funds raised, over 60% of the total

proceeds raised came from IPOs in Q3 and Q4. The

number of IPOs hit another historical height by breaking the record of 104 IPOs in 2013.

HK’s IPO market showed more robust performance in 2014 over 2013


Source: HKEx, Deloitte analysis; excludes the transfer of listings from Growth Enterprise Board to the Main Board and proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

Source: HKEx, Deloitte analysis; as of 31 December 2014, proceeds do not include the green-shoe options of Dalian Wanda and BAIC Motor, in which their stabilization actions were not announced by 31 December 2014

Hong KongOverview of IPO Market - 2014Proceeds from this year’s top 5 IPOs accounted for nearly 50 percent of the total proceeds raised for the year, 33% up against last year; H-share listings continued to play a key role in mega IPOs

20131. China Everbright Bank Company Limited – H-Shares 24.92. China Cinda Asset Management Co., Ltd. – H-Shares 21.93. Sinopec Engineering (Group) Co., Ltd. – H-Shares 13.94. China Huishan Dairy Holdings Company Ltd. 11.65. Huishang Bank Corporation Ltd. – H-Shares 10.6

Issuer Proceeds Raised (HK$ billion)

20141. Dalian Wanda Commercial Properties Co., Ltd. – H-Shares 28.82. CGN Power Co., Ltd – H-Shares 28.2

3. HK Electric Investments and HK Electric Investments Limited – SS 24.1

4. WH Group Limited 18.35. BAIC Motor Corporation Limited – H-Shares 11.0


68

1

6

15

2 2

65

14

18

15

12

20

87

67

6

98

21

0

5

10

15

20

25

No. of H-Share listings(1993-2014)

Overview of IPO Market - 2014H-Share offerings rose rapidly to new historical height to 21 deals, which were more than two times from 8 deals last year

Source: HKEx, Deloitte Analysis, as of 31 December 2014.* In chronological order by date of listing

2014*

1. Fujian Nuoqi Co., Ltd2. Nanjing Sinolife United Company

Limited3. Livzon Pharmaceutical Group Inc4. Poly Culture Group Corporation

Limited5. Harbin Bank Co., Ltd.6. China CNR Corporation Limited7. Qingdao Port International Co., Ltd.8. Hanhua Financial Holdings Co., Ltd9. Dynagreen Environmental Protection

Group Co., Ltd.10. Central China Securities Co., Ltd.11. China Vanke Co., Ltd12. Chanjet Information Technology

Company Limited.13. Beijing Digital Telecom Co., Ltd. 14. Beijing Urban Construction Design &

Development Group Co., Limited 15. Shanghai La Chapelle Fashion Co.,

Ltd.16. Wuxi Sunlit Science and Technology

Company Limited17. Yangtze Optical Fibre and Cable Joint

Stock Limited Company18. CGN Power Co., Ltd19. BAIC Motor Corporation Limited20. Dalian Wanda Commercial Properties

Co., Ltd.21. Shengjing Bank Co., Ltd.

Hong Kong


10 11 7 5 7 7 13

37

13 1421

47

1023 18

2615 10 12 13 10 6

16

49

18 24 27 270 2 0 0 0 02

3

0 22

3

3

23

5

34 3 2

1 5

5

12

51

8 5

0

50

100

150

200

250

300

350

0

10

20

30

40

50

60

70

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

Proceeds raisedNo. o

f IPO

s

HK MB IPOs HK GEM IPOs Proceeds from IPOs (HK$ billion)

The number of IPOs in Q4 was at a similar level as that of 2011. Although more IPOs were completed in Q3 than in Q4, proceeds in Q4 increased significantly by 96%.

Source: HKEx, Deloitte analysis; proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

Listing applications in HKEx rose 14% this year

• 159 listing applications for the Main Board (MB) and Growth Enterprise Market (GEM) were accepted for the full year of 2014, rose from 140, a y-o-y increase of 14%.

• 38 active applications were being processed, rose from 37, with an increase rate of 3%。

Lapsed listing applications significantly dropped; Rejected, withdrawn and returned applications jumped

• In 2014, 23 applications were lapsed, decreased from 34, or 32% y-o-y.

• 13 applications were rejected, increased from 6, or 117% y-o-y.• 7 applications were withdrawn, rose from 2, or 250% y-o-y. • 4 returned applications, raised from 1, or 300% y-o-y.

Hong KongOverview of IPO Market - 2014Listing applications increased from 140 in 2013 to 159 in 2014. The number was slightly more than 155 applications in 2010.


Overview of IPO Market - 2014Valuation and return surged

67%31%

2%

Number of IPOs by Location of Issuer

Chinese MainlandHong Kong and MacauOverseas

Ratio of Mainland companies rose again, but deal size shrunk

• 77 out of 115 deals came from the Chinese Mainland, accounting for 67% of new listings against 65 deals, which took up 63% of new listings of last year.

• IPO funds raised from Chinese companies grew to HK$196.1 billion, representing 86% (2013:90%) of the total proceeds raised in the market.

• Two international companies were listed in HK in 2014. The first one was listed by way of introduction and the second one raised HK$2.02 billion, 28% down y-o-y compared with HK$2.82 billion from three overseas companies last year.

P/E multiples continued to grow

• 68% of IPOs were priced in P/E multiples of 10 times or above, 5 percentage points higher than 63% of last year.

• 43% of IPOs were priced in P/E multiples of 20 times or above, 16 percentage points higher than 27% of last year.

Average fist-day return rose by 6.9 percentage points

• Average first-day performance was +35.8% (MB: +5.3%，GEM: +144.6%), increased by 6.9 percentage points from 28.9% on a y-o-y comparison (MB: +6.4%，GEM: +118.1%).

• Three GEM issuers were the top three best IPO performers. The best performer offered a first-day return of +720%. Three MB companies were ranked as the top three worst IPOs and the first-day return of the worst performer was -30%.

• One of the top three worst IPOs was issued in December, while the other two were issued at the end of June. With frequent offerings in December, the capital market was more selective in IPOs, and same situation occurs at the end of June when new IPOs were debuted intensively.

5%17%

25%43%

10%

P/E Multiples

x < 5 times 5 times < x < 10 times10 times < x < 20 times x > 20 timesIntroduction/Loss -22%

-24%

-30%

610%

710%

720%

-40% 160% 360% 560% 760%

Top 3 Best/ Worst Performers of HK IPO

Changgang Dunxin

Nirvana Asia

L&A Int’l

KSL Holdings

Source: HKEx, Deloitte analysis; as of 31 December, proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

Hong Kong

E Lighting Gp

Hang Fat Ginseng


IPO Deal Size Analysis - 2014About 62% of Main Board’s total proceeds were contributed by eight mega deals, which have their proceeds hitting the highest level since 2011

10 IPOs raisedHK$169.7b



Total MB funds raised:

HK$247.9b• China Zhongwang

Holdings Limited• Sinopharm Group Co.,

Ltd.- H-Shares• Metallurgical Corporation

of China Ltd.- H-Shares• Glorious Property

Holdings Limited• Wynn Macau, Limited• Longfor Properties Co.,

Ltd. • China Minsheng Banking

Co., Ltd.-H-Shares• Sands China Ltd.• China Longyuan Group

Power Group Co., Limited.-H-Shares

• China Pacific Insurance(group) Co., Ltd.-H-Shares


HK$448.8b• United Company RUSAL• Agricultural Bank Of China

Limited - H-Shares• Xinjiang Goldwind Science

& Technology Co., Ltd. - H-Shares

• AIA Group Limited • China Rongsheng Heavy

Industries Group Holdings Limited

• Chongqing Rural Commercial Bank Co., Ltd.-H-Shares

• Zoomlion Heavy Industry Science and Technology Co., Ltd.- H-Shares


HK$271.0b• Hui Xian Real Estate

Investment Trust • Shanghai Pharmaceuticals

Holding Co., Ltd.- H-Shares• Glencore International• MGM China Holdings

Limited • Samsonite International

S.A.• PRADA S.p.A.• Sun Art Retail Group Ltd.• CITIC Securities Co., Ltd.• HKT Trust and HKT Ltd.-SS • Chow Tai Fook Jewellery

Group Ltd.• New China Life Insurance

Co., Ltd.- H-Shares


HK$88.9b• Haitong Securities

Company Limited -H- Shares

• The People's Insurance Company (Group) Of China Limited- H-Shares

• China Galaxy International Securities Co., Limited- H-Shares

• Sinopec Engineering (Group) Co., Ltd.-H-Shares

• China Huishan Dairy Holdings Company Limited

• Huishang Bank Co., Ltd.- H-Shares

• China Cinda Asset Management Co., Ltd.- H-Shares

• China Everbright Bank Co., Ltd.-H-Shares


HK$225.7b• HK Electric Investments and

HK Electric Investments Ltd. SS

• Harbin Bank Co., Ltd.- H-Shares

• China CNR Corporation Ltd. -H-Shares

• WH Group Ltd. • CGN Power Co., Ltd. – H-

Shares• BAIC Motor Corporation Ltd.

H-Shares• Dalian Wanda Commercial

Properties Co., Ltd.- H-Shares• Shengjing Bank Co., Ltd.- H-

Shares



10 7 11

2 6 8

0%10%20%30%40%50%60%70%80%90%

100%

2009 2010 2011 2012 2013 2014

Deal Size of HK MB IPOsMega (>US$1b) Large(US$1b>x>US$0.5b) Medium (US$0.5b>x>US$0.2b) Small (<US$0.2b)

Source: HKEx, Deloitte analysis; as of 31 December; proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014



HK$165.7b

Hong Kong


1.56 1.61

1.10

1.021.08

1.05

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0

20

40

60

80

100

120

140

2009 2010 2011 2012 2013 2014

Average Proceeds RaisedPr

ocee

ds R

aise

d

Deal Size of HK MB IPOs (excluding US$1 billion mega-deals)Large (US$1b>x>US$0.5b) Medium (US$0.2b>x>US$0.5b) Small (<US$0.2b) Average

3%

IPO Deal Size Analysis – 2014MB’s average deal size reduced merely by 3% to HK$1.05 billion, while those of Growth Enterprise Market were HK$108 million. Both were less than last year

Hong Kong

Source: HKEx, Deloitte analysis; excludes the transfer of listings from Growth Enterprise Board to the Main Board and proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

(HK$ billion) (HK$ billion)

50 d

eals • HK$

78.1billion 80

dea

ls • HK$

128billion 58

dea

ls • HK$

63.5 billion 46

dea

ls • HK$

46.9billion 70

dea

ls • HK$

75.8billion 82

dea

ls • HK$

86.0billion


IPO Valuation Analysis - 201439% of IPOs were priced higher than the mid-point of the indicative range, eight percentage points lower than 47% of last year

27%

20%

18%

21%

3%11%

2013

At Top of Range

Above Mid-Point ofRange

At the Mid-Point ofRange

Below Mid-Point ofRange

At Bottom of Range

Fixed Price

Source: HKEx, Deloitte Analysis; as of 31 December 2014

18%

21%

3%

22%

20%

16%

2014

Hong Kong


79% MB IPOs were over-subscribed. Among the over-

subscribed IPOs, 55 % of the were over-subscribed by

over 20times.0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

20142013

No. o

f Tim

es o

f Ove

r-sub

scrip

tion

Best-received IPOs in terms of Over-subscription rate

1,086x

3,558x

Hong KongRates of top 5 over-subscribed IPOs were significantly higher than those of 2013. But there were more under-subscribed IPOs, especially in Q2 and Q3, when there were intensive offering activities

(2013: 85%)

(2013: 49%)

Oi Wah Pawnshop

Credit Magnum

Entertainment

Issuer Over-subscription Rate

Magnum Entertainment 3,558x

Huisheng International 2,187x

Austar Lifesciences 1,251x

Wai Chi Holdings 1,223x

Miko International 1,125x

Top 5 over-subscribed IPOs in 2014

15

Source: HKEx, Deloitte Analysis; as of 31 December 2014.


6%

11%

9%

19%16%

23%

12% 4%

2013Energy & Resources

Financial Services

Health Care & PharmaceuticalManufacturing

Property

Consumer Business

TMT

Others

5% 5%7%

9%

17%36%

19%2%

2014

Hong KongNumber of IPOs by Industry - 2014Consumer business sector took lead followed by TMT and property

Source: HKEx, Deloitte Analysis; as of 31 December 2014


10.9

70.3

8.0

20.1

14.9

36.0

8.5

0.2

0 20 40 60 80

Energy & Resources

Financial Services

Health Care and Pharmaceutical

Manufacturing

Property

Consumer Business

TMT

Others

2013

55.4

22.7

10.1

28.3

43.9

46.9

20.2

0.1

0 20 40 60

Energy & Resources

Financial Services

Health Care & Pharmaceutical

Manufacturing

Property

Consumer Business

TMT

Other

2014

24.3%

10.0%

4.4%12.4%19.3%

20.6%

8.9%

Energy & Resources Financial Services Health Care & Pharmaceutical Manufacturing Property Consumer Business TMT Others

6.4%

41.6%

4.7%11.9%

8.8%

21.3%

5.0%

Hong KongMore than 40% of the market’s proceeds came from Energy & Resources and Consumer Business sectors

HK Electric Investments and

CGN Power accounted for over 90% of proceeds for

Energy & Resources

Everbright Bank, Cinda and

Galaxy Securities drove most proceeds

for Financial Services

(HK$ billion)

Source: HKEx, Deloitte analysis; as of 31 December, proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014

17

0.1%

0.3%

©2015. For information, contact Deloitte China. (HK$ billion)

18 18香港及中国大陆IPO市场 - 2014年第一季回顾与展望

Review of IPO Market in 2014-Chinese Mainland

IPOs were restarted on 17 January but turned static from 20 February and then resumed again on 26 June.

52 new listings (↓50%**) , raising RMB 35.3 billion*

(↓51%**), both were far lower than those of the same period in 2012**.

16

37

51

7

1926

0

5

10

15

20

25

30

0

10

20

30

40

50

SH Main Board SZ SME Board ChiNext

Proceeds RaisedNo. o

f IPO

s

Number of IPOs in 1H 2012 Number of IPOs in 1H 2014Proceeds Raised in 1H 2012 Proceeds Raised in 1H 2014

Source: China Securities Regulatory Commission (CSRC), Deloitte analysis, as of 30 June 2014.* Including proceeds raised from offering of old shares in some IPOs;** Without any new listing in 2013, figures in 2014 were compared against those of the same period in 2012.

(RMB billion)

1H 2012 1H 2014

Chinese Mainland’s IPO activities were active in Q1 2014 and then resumed in June

(1H 2012**: 104 new listings, raising RMB72.6 billion)


1H 2012 1H 2014 1H 2012 1H 2014

25

55

74

43 32

50

0

10

20

30

40

0

20

40

60

80

SH Main Board SZ SME Board ChiNext

Proceeds RaisedNo. o

f IPO

s

Number of IPOs in 2012 Number of IPOs in 2014Proceeds Raised in 2012 Proceeds Raised in 2014

(RMB billion)

2012 2014

Since end of June, the A-share market saw 77* IPOs, falling behind of the forecast of “100 IPOs in the

second half of 2014”. 125 new listings* (↓19%**) were completed raising RMB78.7billion* (↓24%**). More IPOs were completed on the Shanghai Main Board. However, the number of new listings on the Shenzhen SME Board and ChiNext was obviously fewer than that of

2012. Furthermore, the market only recorded one large listing. As a result, the number of IPOs and proceeds raised were merely more than half of those of 2012**.

Source: CSRC, Deloitte analysis *as of 31 December 2014. including proceeds raised from offering of old shares in some IPOs**Without any new listing in 2013, figures were compared against those of the same period in 2012.

The number of IPOs of Chinese Mainland were fewer in 2014 with merely one large offering

(2012**: 154 new listings, raising RMB103.4 billion)


2012 2014 2012 2014

Chinese MainlandOverview of IPO Market – 2014Proceeds from top 5 IPOs rose by 25% from same period of 2012 to RMB18.3 billion

2012

1. China Communications Construction 5.0

2. CITIC Heavy Industries 3.2

3. Sunrise Technology 2.2

4. CIXING 2.1

5. AoKang Shoes 2.1

Issuer Proceeds Raised (RMB billion)

2014

1. Guosen Securities 7.0

2. Shaanxi Coal 4.0

3. Haitian Flavoring & Food 3.8

4. Hainan Mining 1.9

5. First PV Material 1.6


Source: CSRC, Deloitte analysis* as of 31 December 2014. including proceeds raised from offering of old shares in some IPOs

4 5 10 1 6 9 11 12 9 6 5 11 8 0 0 0 0 6 115 21

24 30

5258 46 48

35 26 26 2819 18 15

0 0 0 0

184

39

36

2925 33 30

4340

3114

2526

22

50 0 0 0

24

11

14

0

2

4

6

8

10

12

14

16

18

0102030405060708090

100

Q3'09 Q4'09Q1'10Q2'10 Q3'10Q4,10Q1'11 Q2'11Q3'11 Q4'11Q1'12Q2'12 Q3'12Q4'12Q1'13 Q2'13Q3'13Q4'13 Q1'14Q2'14Q3'14 Q4'14

SH MB IPOs SZ SME BOARD IPOs ChiNext IPOs Proceeds from IPOs (RMB billion)

Proc

eeds

Rai

sed

No. o

f IPO

s

Chinese MainlandOverview of IPO Market – 2014IPO activities and meetings of Public Offering Review Committee resumed

Source: CSRC, Deloitte Analysis；no. of IPO in Q4 2012 at SH MB: 1; SZ SME Board: 3; ChiNext: 1*As of 31 December 2014

Since IPO activities resumed in January 2014, the number of IPOs recorded was 125, 19% down from 154 in 2012. The proceeds raised were 24% down from RMB103.4 billion to RMB78.7 billion*.

IPOs reactivated

• Following the re-launch of A-share IPO activities, the CSRC resumed the Public Offering Review Committee’s meeting in April 2014. Companies which had passed the meetings were debuted eventually.

• As at 31 December, 109 of the 120 new IPOs reviewed by the Public Offering Review Committee were approved, 10 were rejected and 1 were pending for decision.

Listing applications were reviewed and subsequently reduced

• As at 25 December 2014, a total of 654 companies filed applications for listing on the SH MB, SZ SME Board and ChiNext. Among the applications, 25 were suspended.

• Another 138 companies terminated or withdrawn their applications by 25 December 2014.

38 IPOs were approved by Public Offering Review Committee to list

• 629 applications were under processing as at 25 December 2014.

• Among them, 38 companies have passed the meetings of Public Offering Review. Committee and were waiting in the wings.

• Among the 12 companies that obtained offering approval documents on 10 December with their offering details announced, 10 went public before end of 2014.


Chinese MainlandOverview of IPO Market – 2014First-day P/E ratios and average first-day return

Issue of high P/E multiples still needs to be resolved

• 75% of IPOs (94) were priced in P/E multiples of 20 times or above, 6 percentage points lower than 1H 2012.

• 4% of IPOs (5) were priced in P/E ratios of 40 times or above, reduced by 5 percentage points from 9% over the same period of 2012.

• An education institute enjoyed a P/E multiple of 51 times when getting listed, the highest ratio among all of the IPOs.

There was no significant difference in first-day gain among IPOs

• The average first-day performance was 44%. As new IPO issuers were required to keep their first-day gains within 44%, there was no significant difference on the first-day returns among the IPOs.

• The best performing issuer on the debut day (46%) is listed on ChiNext while the worst performer (14%) is listed on the SH MB.

1%

24%

71%

4%P/E Multiples of A-Share IPOs

x < 10 times 10 times < x < 20 times20 times < x < 40 times x > 40 times

14

19

30

45

46

46

0% 10% 20% 30% 40% 50%

Top 3 Best/ Worst Performers ofA-Share IPOs

Source: CSRC, Deloitte Analysis, as of 31 December 2014

Liangxin Electrical Wolwo Bio-

Pharmaceutical

Haitian Flavoring & Food

Sunrise Technology

Shaanxi Coal

Qtone Education


IPO Deal Size Analysis – 2014There were fewer large listings. The top 14 IPOs raised RMB30.5 billion, which was merely 39% of total proceeds over the year

Chinese Mainland

94 1 10%

10%20%30%40%50%60%70%80%90%

100%

2009 2010 2011 2012 2013 2014

Deal size of A-share IPOsMega (>RMB5b) Large (RMB5b>x>RMB1b) Medium (RMB1b>x>RMB0.5b) Small (<RMB0.5b)

24Source: CSRC, Deloitte Analysis, as of 31 December 2014.

Total funds raised:

RMB190.8b• China State

Construction • Metallurgical

Corporation of China

• China CNR Corp. • China

Shipbuilding Industry

• China Merchants Securities

• China Everbright Securities

Total funds raised:

RMB480.2b• Agricultural Bank of

China• China Everbright Bank• Huatai Securities• China First Heavy

Industries • China XD Electric• Ningbo Port• China National

Chemical • Hepalink

Pharmaceutical• Kelun Pharmaceutical

Total funds raised:

RMB282.4b• Hydro China • Sinovel Wind• Pangda

Automobile Trade• Founder

Securities

Total funds raised:

RMB103.4b• China

Communications Construction

Total funds raised: RMB0b

IPO activity was yet resumed

Total funds raised:

RMB78.7b• Guosen

Securities

- - 1 IPO raised RMB7.0b

6 IPOs raised RMB122.6b



1 IPO raised RMB5.0b


6

IPO Deal Size Analysis – 2014The average deal size for MB, SZ SME Board and ChiNext was RMB648 million, RMB709 million and RMB435 million respectively, which were all lower than those of 2012.

7.3

0.9980.893

0.643

0.000

0.578

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0

50

100

150

200

250

300

350

400

2009 2010 2011 2012 2013

Average Proceeds RaisedPr

ocee

ds R

aise

d

Deal Size of A-Share IPOs (excluding RMB5 billion mega deals)Large (RMB5b>x>RMB1b) Medium (RMB1b>x>RMB0.5b) Small (<RMB0.5b) Average

Chinese Mainland

(RMB billion)(RMB billion)

93 d

eals • RMB

68.2 billion

338

deal

s • RMB 337.5 billion

277

deal


153

deal

s • RMB 98.4 billion 0

deal • RMB

0 billion

124

deal


2014

10%

25



0

100

200

300

400

500

600

700

800

20142012

No. o

f Tim

es o

f Ove

r-sub

scrip

tion

Best-received IPOs in terms of over-subscription rate

742x

357x

Chinese MainlandOver-subscription rates of IPOs continued to stand high despite a sluggish market

100%of IPOs were over-subscribed.

Among the over-subscribed IPOs,

58%were over-subscribed by

over 100times.

(2012 : 100%)

(2012 : 42%)

Zhejiang Shibao

Beite Technology Source: CSRC, Deloitte Analysis, as of 31 December 2014

IssuerOver -

subscriptionRate

Beite Technology 357x

Guilin Fuda 333x

Beijing Strong Biotechnologies 333x

HMT (Xiamen) New Technical Materials 333x

SuZhou TA.A Ultra Clean Technology 333x

Top 5 over-subscribed IPOs in 2014


Chinese MainlandNumber of IPOs by Industry – 2014Manufacturing sector took lead followed by Technology, Media & Telecommunications

4%1%6%

46%

3%

14%

23%

3%

2012Energy & Resources

Financial Services

Health Care &Pharmaceutical

Manufacturing

Real Estate

Consumer Business

Technology, Media &Telecommunications

Others

7% 1%

11%

40%

3%

15%

23%

2014

27



Proceeds from Manufacturing took up 28% of proceeds raised by the market over the period, a drop from 44% in 2012

11%

9%

10%

28%2%

19%

21%

Energy & Resources Financial Services Health Care & Pharmaceutical Manufacturing Real Estate Consumer Business Technology Others

4.0

1.7

5.5

45.0

7.5

16.0

21.3

2.4

0 10 20 30 40 50

Energy & Resources

Financial Services


Manufacturing

Real Estate

Consumer Business

TMT

Others

2012

4%

2%5%

44%

7%

15%

21%

2%

Manufacturing sector led

other sectors

Manufacturing sector took

lead

(RMB billion)

(RMB billion)

Chinese Mainland

28



8.6

7.0

7.9

22.3

1.8

14.8

16.3

0.0

0 5 10 15 20 25

Energy & Resources

Financial Services


Manufacturing

Real Estate

Consumer Business

TMT

Others2014

Chinese MainlandThe number of companies pending for listing review has dropped by 16% from 752 before IPO activities were resumed to 629, relieving the IPO backlog gradually.

188

38 28 18

81

37 9 9

116

77

16 11 9953

15 9

116143

19 30

83135

5 43

-

50

100

150

200

250

300

350

400

450

No. of Companies Pending for CSRC’s Listing ReviewSH MB SZ SME ChiNext

Under initial review

Responding to CSRC’s

enquiriesPre-disclosure

Approved by meetings of Public

Offering Review Committee

Source: CSRC, Deloitte Analysis, compared data as at 27 December 2013 and those on 25 December 2014

End of 2013End of 2014

End of 2013 End of 2014

Submitted to Public Offering Review Committee Meeting for discussion and pending for decision

SH MB: 1SZ SME: 1 SH MB：1

End of 2013End of 2014 End of 2013End of 2014 End of 2013End of 2014


香港及中国大陆IPO市场 - 2014年上半年回顾与展望30

Review of IPO Market in 2014 - Global

In terms of proceeds raised, the New York Stock Exchange took lead and HKranked 2nd. The London Stock Exchange and NASDAQ were behind of HK. As for

the Shenzhen Stock Exchange and Shanghai Stock Exchange, their IPO funds raised merely took up more than 50% of those of NASDAQ.

575.4

227.7 192.7 179.8

0

100

200

300

400

500

600

New York Stock Exchange Hong Kong StockExchange

London Stock Exchange NASDAQ

HK Came as Second Top IPO Venue for Another Year

(HK$ billion) IPO Proceeds Raised by Key Global Stock Exchanges in 2014

Source: NYSE, NASDAQ, London Stock Exchange, HKEx, China Securities Regulatory Commission, Bloomberg, Deloitte analysis, and proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014Excludes proceeds from close-end investment companies, and funds and special purpose acquisition companies

119 IPOs 115 IPOs 124 IPOs 181 IPOs


Outlook of IPO Market in 2015─ Hong Kong

Slowdown in China’s economic

Uncertainty in timing of U.S.

interest rate hike

Outlook – the following external reasons will shape outlook of IPO market: Hong Kong

Ongoing weakening of Eurozone economies

Continuous drop in oil price hitting global economic outlook

The market generally believed that growth of China’s economy to turn weak in 2015. Its property market will continue to be in adjustment. The local debt issue is expected to be deepened as the local governments will be required to report their debt classifications to the State over the year. It is expected that the Central government may take stronger measures such as interest rate or reserved ratio cut to increase the market liquidity and stimulate corporate investment into the economy as a result.

In the last Federal Open Market Committee meeting in 2014, the phase ‘considerable time’ on low interest rate was dropped from its policy statement. The market speculated if the interest rate hike will be advanced following the strong performance of recent U.S. economic and employment data and moderate inflation. But there was a belief that the recent oil price fall, the Ruble’s depreciation and outlook of the Eurozone economies may hold up the rise in the U.S. interest rate for a while.

The European Central Bank lowered the growth targets of economies in the zone in 2015 and will weigh its quantitative-easing plans, assets and bond purchase programs. The European Union was planning to launch nearly 2,000 investment projects to stimulate economies and employment.

The issue show that the demand for resources has softened. It further suggested that the global economic outlook in 2015 may not be positive. The Russian economy may face a downturn and a negative growth.

33

development


34

Outlook – potential competitive edges are to be unleashed to boom the IPO market

Hong Kong

• The number of companies awaiting A-share IPO review was still over 600 in 2014

• It will still take time for the Chinese new share issuance registration-based regime to be introduced

• Many Mainland companies will still divert their listings to HK

• H-share listing will remain popular and the relaxation of full-circulated H-share listing is anticipated in 2015

• SOEs may continue to list as a consolidated group in HK

• Market turnover to become more active to help the re-rating of HK’s stock market

• Attract more listings from Chinese and overseas firms

• To be expanded to IPOs of the two markets in 2015• To help raise HK’s status as an offshore Renminbi

center and facilitate development of more RMB-denominated investment products and IPOs

• Different business structures, such as business trusts, real estate investment trusts would be allowed to be listed, promoting the development of their investment products

• To prompt Mainland emerging companies and international companies in different shareholding structures to list in HK, so as to strengthen HK’s competitiveness in luring emerging businesses

• ‘Shenzhen-HK’ Stock Connect may be launched in 2015 to strengthen integration between the two capital markets

HK’s IPO Market

Reform in shareholding structure rules to draw

Strengths of Shanghai-HK Stock Connect to be fully shownemerging

businesses


Pharma-ceutical

firms

Environmental and energy

saving companies

Local brands

Property companies

Consumer and retail

businesses

State-owned

enterprises

Financial institutions

(banks, insurance companies and

brokerages)

Outlook – IPO highlights & trendsHong Kong • To be benefited from SOE reform that will drive SOE

to list as a consolidated group• Some SOEs may have core business spun off before

listing• Some may go public via IPO or back-door listings• Uncertainty in listing timetables• To be hit by Internet finance, interest rate liberalization,

increasing risk in bank’s bad debt ratio and stimulated by new urbanization and new deposit insurance scheme

• Other small banks and financial institutions will need additional capital through listing to enhance competitiveness

• Chinese insurance companies need to fulfill the new reserved ratio requirements

• The China Securities Regulatory Commission encouraged brokerages to use different channels to raise their capital, such as through IPOs

• Chinese brokerages need to strengthen their cross-border competitiveness following the launch of ‘Shanghai-HK Stock Connect’

• A capital intensive industry• The environment is conducive without any further

strengthening in macro control and under the relaxation in residential loan, interest rate cut and reduction in deposit reserved ratios.

• Environmental and resources issues have been taken to China’s strategic development plan. The country targets to reduce its carbon emission level from 40% to 45% by 2020

• The Chinese government is to continue to leverage on domestic consumption to stimulate economic transformation

• The sector is to be benefited from new urbanization, improvement in GDP per capital

• The second generation is in charge of the family business and may like to expand or develop presence on the Mainland

• Pace of A-share IPOs is to be speed up as more than 600 companies were waiting for IPO review after listing activities restarted. Chinese companies will continue to come to list in HK 35

• To be benefited from the liberation of medical and health care services


26%

14%

9%12%

12%

15%

12%

MB

Consumer Business

Financial Services

Energy & Resources

Property

TMT

Manufacturing

Health Care andPharmaceutical

Hong KongOutlook - Application proofs published on HKEx’s website

©2015. For information, contact Deloitte Touche Tohmatsu. (POG IPO Sharing Workshop) 36

Application proofs: 34

12%

18%

12%29%

23%

6%

GEM

Application proofs: 17

Source: Hong Kong Stock Exchange; as of 16 December 2014

Outlook of HK’s IPO market to be positive in 2015;Liquidity will still subject to development of China, U.S. economies

7-8 mega IPOs are awaiting to

be listed

If U.S. interest rate hike will advance and the market response

About 51 companies were applying to list in HK or planning to

offer in 2015

China’s economic growth and if there will be any easing measures in 2015

110 IPOs raising

about

HK$180-220 billion

No. of IPOs:

4%

$ raised:

3-21%

When oil price is to break out of the trough


Outlook of IPO Market in 2015─ Chinese Mainland

Opportunities

• The State Council executive meeting proposed to accelerate the reform policy of the registration-based regime for share issuance.

• The State Council executive meeting proposed to eliminate the conditions for sustainable profits in order to lower the threshold for listing small and innovative enterprises.

• The CSRC proposed to actively advance the registration-base regime reform and expedite the pace of IPOs.

Challenges• The authorities still fail to provide a

definite timetable for the reform of the registration-based regime.

• The IPO proceeds raised in the second half of 2014 were lower than expectation. The government continued to be prudent to the stock market.

• The IPO backlog has not been relieved with more than 600 companies awaiting listing.

• The Shanghai-HK Stock Connect may stimulate companies awaiting A-share listings to switch their listing plans and the momentum for those listed companies to return to the A-shares may be affected.

Chinese MainlandOutlook──Prospect of IPO market: opportunities and challenges coexist


The executive meeting of the State Council decided to take strong measures to further resolve the issue of high financing cost for corporations and put forward 10 new rules including accelerating

the reform policy of a registration-based system for share issuance.

The proposal of the registration-based regime of new share issuance may be introduced in June 2015

following the revision of the Securities Law.

A registration-based regime for new share issuance will greatly improve the efficiency of reviewing A-share

IPO applications and eventually relieve and address the backlog issue

more effectively.

Outlook──Actively promote reform to a registration-based system by refining details of the reform plan

Chinese Mainland


The reform plan was submitted to the State Council at the end of November 2014. It is expected that upon successful launch of a registration-based system, the market

capacity will be lifted gradually.

The CSRC has set the active reform of a registration-based system and regular issuance of new shares each month as future priorities. On the basis of

stabilizing the market expectation, the CSRC will speed up the pace of IPOs.

40

Chinese Mainland Outlook── Lower the ChiNext threshold and promote hi-tech firms to return to the A-Share market


During the executive meeting of the State Council which was chaired by Premier Li Keqiang on 19 November 2014, the IPO requirement of sustainable profitability was proposed to be eliminated, lowering the listing threshold for micro-, small and innovative enterprises.

Encouraging hi-tech firms to list on A-

share market

• Eliminating the profit threshold for ChiNext will facilitate the IPOs and fundraising activities of innovative enterprises. This will encourage more outstanding overseas-listed companies to return to list on the Mainland as well.

• Listing on ChiNext remains an attractive option for companies that are considering to go public given its higher valuation as compared with its U.S. and HK peers. Lowering its listing requirements may draw domestic Internet and innovative firms without profitability to list on the A-share market instead.

• Relaxing the issuance requirements and returning the rights to the market to leave investors to make investment decisions will help promote the reform of a registration-based system, establish a listing transfer system, and improve the delisting system.

• There is no profit requirement for listing on U.S. NASDAQ、Singapore’s Catalist and HK’s GEM.

• To support the listing of Internet, technology and innovative companies that have yet reached profitability, there is a need to enable ChiNext to cover more sectors of the innovative and emerging industries. This is the original positioning of ChiNext when it was established as well.

Only open to: - Institutional

investors- Individual

investors who hold a total balance of at least RMB500,000 in their securities and cash accounts

Subject to - an aggregate quota* of RMB250 billion

- a daily quota* of RMB10.5 billion

All constituents of - Hang Seng

Composite LargeCap Index,

- Hang Seng Composite MidCap Index,

- shares of all companies listed on both SSE and Stock Exchange HK

Northbound Trading Link

Southbound Trading Link

All constituents of - SSE 180 Index,- SSE 380 Index, - shares of all SSE-

listed companies, which have issued both A- and H-shares

Subject to - an aggregate quota* of RMB300 billion

- a daily quota* of RMB13 billion

*To be monitored on a real time basis and may be adjusted in future

HK brokers, a securities trading service company

was set up by SEHK

Mainland securities firms, a securities trading service company was set up by

Shanghai Stock Exchange (SSE)

Source: CSRC and Securities & Futures Commission


Chinese Mainland Shanghai-HK Stock Connect: a new pilot project for the capital market

Opens up of the Mainland capitalmarket and promotes the bilateral liberation of the two capital markets

• Attract more investors to help promotethe internationalization of Mainland’s capital market

• Provide investors from the Mainland withmore diversified investment choices

• Assist Shanghai to develop into an international financial center of the Chinese Mainland

• Promote the internationalization of RMB and the opening up of Mainland’s capitalaccount

Further consolidate and promote HK’s position as an international financialcenter

• Consolidate HK’s position as a primary destination for Chinese companies to go global and international companies to enter the Mainland market

• Further enhance HK’s position as an offshore RMB center

• Improve HK’s market liquidity and attract more investors

• Pave way for interconnection of investment products from other asset classes

©2015. For information, contact Deloitte China

Chinese Mainland Outlook── Shanghai-HK Stock Connect: a new pilot project for the capital market

43

• It stimulates companies in the A-share IPO backlog, i.e. those that are awaiting A-share listing review to divert their listings to Hong Kong.

A-Share IPO

backlog

• Authorities of the A-share market will be able to assess more accurately on the impact of HK’s registration system to the pricing of the primary and secondary markets. Eventually it will promote the launch of a registration-based system and proposal of a market pricing mechanism for the A-share market.

• It allows the valuation systems of the two stock markets to be more aligned, so that the value of the A-share market can be truly reflected.

• The momentum for H-share listed companies to complete a dual-listing on the A-share market may be slowed down. Some of the H-Share listedcompanies will delay theirA-share listing plan.

Chinese MainlandOutlook── Shanghai-HK Stock Connect: Help ease the A-Share IPO backlog

44©2015. For information, contact Deloitte China

Advantages• In December 2012, the CSRC issued

‘Guidelines for Supervising the Application Documents and Examination Procedures for the Overseas Stock Issuance and Listing of Joint Stock Companies,’ which relaxed the requirements for Chinese companies to list in HK and streamlined the review procedures.

• HKEx has a more predictable IPO review timetable. Generally speaking, it takes a company less than three quarters from initiating an IPO plan to getting listed.

• Listed companies are allowed to have more flexible structures and cornerstone investors are allowed to join the IPO.

• Companies are allowed to make follow-on offerings without approval from HKEx after getting listed for six months. It provides M&A opportunities for companies to expand and internationalize.


Chinese MainlandOutlook── Companies awaiting listing review may transfer toHK

Disadvantages• Different practice in information

disclosure and HK has a more stringent requirement

• Higher uncertainty in terms of risk control in an overseas environment

• Barriers in cashing out the shares• Low valuation for certain

industries

Source: CSRC, Deloitte Analysis46

19 Traditional and hi-end manufacturing

TMT

Resources and Energy Efficiency

Retail and Consumer Business

Life Science and Healthcare

9

5

3

2 Property

Chinese MainlandOutlook──Industry distribution of upcoming IPOs (by number of companies)By end of 2014, 38 companies have passed meetings of the Public Offering Review Committee but have yet offered. Traditional and hi-end manufacturers (50%) and TMT(24%) firms took up the largest proportion.


companies

companies

companies

companies

companies

About 180-200companies are expected to

complete IPOs raising approximately

The CSRC put forward an arrangement of allowing an average number of IPOs to be debuted each month and increase the number of IPOs moderately in due course on the basis of a stable market expectation.

Majority of IPOs will be small and medium in size from manufacturing, technology and consumer businesscompanies.

47

In 2015, A-Share IPOs will increase moderately on the back of a stable market expectation

RMB100-120billion No. of IPOs:

48-64%

Proceeds$:

29-55%

Source: CSRC, Deloitte Estimate and Analysis

for the year


Since end of June till end of the year, the number of A-share IPOs was

23 fewer than what the CSRC forecasted

Credentials of Deloitte China’s IPO Services


Our Market Share in HK’s IPO Services (2009-2014*)

Source: HKEx, Deloitte Analysis * As of 31 December 2014, proceeds do not include the green-shoe options of 10 newly-listed companies which did not announced their stabilization actions by 31 December 2014; based on the accumulated number of IPOs and proceeds raised from 2009 to 2014 for the Main Board.

Our Strong Leadership in HK IPO Services

©2015. For information, contact Deloitte China.49

Deloitte Non-Deloitte

No. of IPOs

27%

Deloitte Non-Deloitte

IPO Proceeds Raised

33%

No. of IPOs: 463

Funds raised:HK$1.45 trillion

©2015。For information, contact Deloitte China. 50

China Maple Leaf Educational Systems Ltd.

It is the largest international high school operator and the largest international school operator in China.

CGN Power Co., Ltd.

It is the largest nuclear power producer in China.

WH Group Limited

It is the world’s largest pork company with global leadership across key segments of the industry value chain.

Nirvana Asia Ltd.

It is the largest integrated death care service provider in Asia.

Xiabuxiabu Catering Management (China) Holdings Co., Ltd.

It is a leading fast casual restaurant operator in China.

CGN Meiya Power Holdings Co., Ltd.

It is a diversified Independent power producer in Asia.

Deloitte is their reporting accountantMajor deals completed in HK in 2014


On Time Logistics Holdings Ltd.

It is a growing international freight forwarding service provider in Hong Kong.

Ernest Borel Holdings Ltd.

It is one of the oldest Swiss premium watch makers, established since 1856 in Switzerland and with 158 years of heritage.

China VAST Industrial Urban Development Company Ltd.

It is one of the pioneer service providers in the planning, development and operation of large-scale industrial towns in China.

Sinomax Group Ltd.

It is a leading marketer, manufacturer and distributor of quality visco-elastic pillows, mattress toppers and mattresses in the U.S., Hong Kong and China.

Guorui Properties Ltd.

It is a fast growing residential property developer in China with commercial property operations.

Jiashili Group Ltd.

It is a large-scale biscuit manufacturer with a long history and leading position in the biscuit market in the PRC.



Hang Fat Ginseng Holdings Co. Ltd.

It is primarily engaged in the sourcing and wholesaling of unprocessed American Ginseng and is the largest first-level American Ginseng wholesaler in Hong Kong.

Hengxing Gold Holding Co. Ltd.

It is an emerging gold mining company in China. It owns and operates the Gold Mountain, the largest gold mine in Xinjiang, China.

Best Pacific Int’l Holdings Ltd.

It is one of the few lingerie materials manufacturers in the world that are able to provide one-stop solutions to lingerie brand owners

Colour Life Services Group Co., Ltd.

It is one of the leading property management companies in the PRC as being named China’s largest community services operator in terms of the number of residential unitsmanaged.

Medicskin Holdings Ltd.

It is a medical skin care group operating two Medicskin Centres in Hong Kong that primarily focus on the treatment of skin diseases/problems and/or the improvement of appearance of its clients.

L & A International Holdings Ltd.

It designs, procures, manufactures, markets and retails of pure cashmere apparel and other apparel products and accessories.



Major Holdings Company Ltd.

It is a retailer of a wide range of premium wine and spirits products.

Hong Wei (Asia) Holdings Co. Ltd.

It is primarily engaged in the manufacturing and sales of particleboards, which are environmentally friendly and resources saving reconstituted wood-based panels.

SDM Group Holdings Ltd.

It is the largest dance institution for children in Hong Kong.



Neway Valve (Suzhou) Company Ltd.

It is the largest and world-renowned industrial valve manufacturer in China.

Deloitte is their reporting accountantRecently completed A-share listings

Universal Scientific Industrial (Shanghai) Company Ltd.

It is a global leader in providing services and solutions in electronic product design and manufacturing.

Beijing Cuiwei Tower Company Ltd.

The company is principally engaged in the development and operation of department store chain on the Chinese Mainland.

Agricultural Bank of China Ltd.

It is one of the four state-owned banks in China. Its IPO was the largest in the A-share market in 2009, raising RMB59.6 billion.

Shandong Molong Petroleum Machinery Company Ltd.

The company is specialised in the design, research and development, processing, manufacturing and sales in China and petroleum machinery export.

China Molybdenum Company Limited

The group specializes in mining, smelting and processing of molybdenum and tungsten.

Deloitte China at a GlanceOur China Practice• Over 10,000 people in 17 offices • Serving one-third of all companies listed on the

Hong Kong Stock Exchange• Leading position in public offering services in

key capital markets and was the reporting accountant for the global largest IPOs in both 2010 (Agriculture Bank of China) and 2011 (Glencore International Plc)

• Advising the Ministry of Finance in the Chinese Mainland on the development of international accounting standards and tax systems since 1993

• Leading the IPO services for Hong Kong since 2009 (in terms of cumulative no. of IPOs and proceeds raised)

We have achieved many industry firsts:• The first to pioneer the listing of RMB-

denominated REIT (Hui Xian REIT)• The first fixed single investment trust from

Hong Kong’s hospitality industry (Langham Hospitality Investments)

• The first state-owned distressed asset management company (China Cinda)

• The first Mainland-based largest death care service provider (Fu Shou Yuan)

• The first Chinese private hospital operator (Phoenix Healthcare)

• The first nuclear power producer in China (CGN Power)

• Asia’s largest integrated death care service provider (Nirvana Asia)

Our China Practice• Over 10,000 people in 17 offices • Serving one-third of all companies listed on the

Hong Kong Stock Exchange• Leading position in public offering services in

key capital markets and was the reporting accountant for the global largest IPOs in both 2010 (Agriculture Bank of China) and 2011 (Glencore International Plc)

• Advising the Ministry of Finance in the Chinese Mainland on the development of international accounting standards and tax systems since 1993

• Leading the IPO services for Hong Kong since 2009 (in terms of cumulative no. of IPOs and proceeds raised)

We have achieved many industry firsts:• The first to pioneer the listing of RMB-

denominated REIT (Hui Xian REIT)• The first fixed single investment trust from

Hong Kong’s hospitality industry (Langham Hospitality Investments)

• The first state-owned distressed asset management company (China Cinda)

• The first Mainland-based largest death care service provider (Fu Shou Yuan)

• The first Chinese private hospital operator (Phoenix Healthcare)

• The first nuclear power producer in China (CGN Power)

• Asia’s largest integrated death care service provider (Nirvana Asia)

Deloitte China National Public Offering GroupYour Winning Team for Listing on Capital Markets

Deloitte offices

Beijing

Dalian

Tianjin

Shanghai

Suzhou

Hangzhou

Xiamen

Hong Kong

MacauGuangzhou

Xingjiang

TibetQinghai

Sichuan

YunnanGuangxi Guangdong

FujianJiangxi

HunanGuizhou

Chongqing

Hubei Anhui

Zhejiang

Jiangsu

Shandong

HenanShaanxiGansu

Shanxi

Inner Mongolia

Liaoning

Jilin

Heilongjiang

Taiwan

Hainan

HebeiNanjing

Chongqing

Ji’nan

Shenzhen

Harbin

Chengdu

Wuhan


56

ContactsNational Public Offering Group

Edward AuCo-LeaderTel：+852 2852 1266/ +86 755 3353 8075Fax : +852 2815 8476/ +86 755 8246 3186 Email : [email protected]

Dick KayCo-LeaderTel：+86 21 6141 1838Fax：+86 21 6335 0177Email：[email protected]

Anthony WuChina A-Share Market Capital LeaderTel：+86 21 6141 1808Fax: +86 21 6335 0177/0377Email：[email protected]

Taylor LamNorthern China Regional LeaderTel : +86 10 8520 7126 Fax : +86 10 8520 7494 Email : [email protected]

©2015。For information, contact Deloitte China.

mailto:[email protected]




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