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Investor FAQ
Frequently asked questions about China Merchants Securities' IPO.
  • Q:What’s the trading code of China Merchants Securities (CMS)?
  • A::CMS’ trading code is 600999.
  • Q:When was CMS listed? On which securities exchange?
  • A:November 17th, 2009, CMS had its IPO successfully and has since been listed on Shanghai Stock Exchange.
  • Q:which stock subscriber organization is CMS registered?
  • A:The stock subscriber organization is China Security settlement and clearing Co. Ltd, Shanghai Branch.
  • Q:What’s the motivation and major usage of CMS IPO fund this time?
  • A:Securities supervisors are posing higher requirements on capital supervision. It’s an imperative to reinforce capital for business development. The IPO raised fund will mainly be used to increase capital and provide support to business development. The explicit plan is: expanding business network; enhancing brokerage competitiveness. Increasing efforts to investment banking business; realizing balanced development of equity, credit right and structural financing; establishing an omnipotent platform of financing and consulting. Expanding the platform of capital management and extending its business scope. Strictly control the investment risk, strengthening proprietary businesses’ investment capacity; Proactively develop equity investment businesses in domestic enterprises; Implement capital injection to CMS Hong Kong corporation, expanding the scale and strength of its brokerage, assets management and investment banking. The Hong Kong Corporation should also be a platform for its surrounding regions’ development. Lastly, to enhance research department’s basic database and financial platform, to enlarge the researching team thus improving its overall research ability.
  • Q:How to determine the offering price?
  • A:It’s based on market principals. During the preliminary price inquiry, offline institutional investors make their offers according to their true willingness. Then, base on the inquiry results, the issuer and co-sponsors (leading underwriter) will determine a price in accordance to the issuer’s fundamental plan and industry, comparative evaluations and market climate, etc.
  • Q:What’s the stock lockup status of CMS’s original shareholders?
  • A:CMS’s controlling shareholder DongSheng investment, the second largest shareholder ZhaoRong Investment and the eighth largest shareholder China Merchants Steam Navigation Co., Ltd. are controlled by China Merchants Group. These three shareholders have made their commitment: within 36 months of the stock listed on the Exchange, they will neither transfer nor entrust others to manage their holdings of shares nor repurchase.
    China Merchants Group as CMS’s controlling entity has made its commitment that it will neither transfer nor entrust others to manage its indirect holding CMS shares nor repurchase within 36 months from the listed date. Hainan Airlines Co., Ltd. under relevant regulations of CSRC made their commitment on the 29,772,496 CMS shares transferred from Hainan Airlines Group Co., Ltd. (representing0.9226% of the total share capital of CMS): after Hainan Airlines has become shareholders of China Merchants Securities, it will not transfer the stocks within 36 months of issuance (Exception are allowed as CSRC proved transfer resulting from merger, restructuring, risk dealing etc.) The "float day" means the day Shenzhen Bureau of China Securities Regulatory Commission issues no-objection letter on the transfer (i.e., June 18, 2009).
  • Q:Will CMS issue Equity Financing in the next three years?
  • A:It mainly depends on the needs of the company's business, according to profits, capital requirements and the comprehensive interests of shareholders. Since its establishment, CMS’s strategy holds maximizing shareholder interest as its foothold. In the future, CMS will continue to attach great importance to shareholders’ returns. According to business requirements, CMS will choose the most favorable financing method, financing opportunities, and determine the appropriate scale of financing for its shareholders.