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List of Chinese Investment Banks & Financial Institutions

Unfortunately Chinese investment banks do not really take cold calls. Either you have guanxi (your dad is someone important in the Han elite) or you get in through the front door with a prestigious school, excellent grades in a quantitative discipline and fluent Mandarin Chinese.

Prestigious schools include Ivy League schools but most entry classes are increasingly filled with students from Tsinghua, Peking University, Zhejiang University, Fudan University, Shanghai Jiaotong University, Xi’an Jiaotong University, Nanjing University, University of Science and Technology of China, and Hong Kong University of Science and Technology (HKUST – but maybe not for long).

Given the current development of capital markets in China at the moment, equity capital markets is the dominant product group. Debt capital markets is seen as less prestigious because a large number of Chinese firms will either go all equity/reinvest cash flow or use bank debt, but this will change as institutional investors look to purchase more Chinese debt and protections for bondholders increase.

Bulge Bracket Investment Banks in China

All major global investment banks had to have a joint venture with a Chinese partner until 2020. This restriction has been relaxed and most bulge brackets are looking to buy out or control their JV partners.

  • Goldman Sachs Gao Sheng
  • Morgan Stanley Huaxin Securities
  • JPMorgan
  • Citi Orient Securities
  • UBS
  • Credit Suisse
  • Deutsche Bank
  • Wells Fargo
  • RBC Capital Markets

List of Investment Banks in China

A lot of these investment banks are cross owned by another broker.

Many Chinese investment banks also are major commercial banks.

  • CLSA CITIC
    • Purchased by CITIC – transitioning to a purely Chinese culture
    • Prestigious in Chinese circles
  • CITIC Securities
    • Prestigious in Chinese circles
  • China Merchants Bank CMB Securities
  • Haitong International Securities
  • Central Wealth Securities Investment
  • Orient Securities
  • Soochow Securities
  • BOC International
  • Tianfeng Securities / TF International
  • Huatai Securities
  • Everbright Securities
  • Guotai Junan Securities
    • Prestigious in Chinese circles
  • CSC Financial
    • Merging with CITIC as part of Chinese directive to build bigger investment banks and brokerages in mega deal
  • China Renaissance
  • CCB International Securities Limited
  • CICC
    • This is China’s first dedicated/selected pure investment banking franchise and is designated to be a winner domestically and even in New York for Chinese capital raises/issues
  • China Galaxy Securities
  • Changjiang Securities
  • Ping An Securities
  • Fosun Hani Securities
  • Admiralty Harbour
    • Debt focused
  • Oriental Patron DongYing
  • HSBC Qianhai
    • HSBC and Qianhai Securities JV
  • Sinolink Securities
  • Shenwan Hongyuan Securities (SEHK: 0218)

Major Chinese Commercial Banks

  • Agricultural Bank of China (ABC)
  • Bank of China
  • Banco Nacional Ultramarino (Macau/Macao major commercial bank)
  • Bank of Chongqing
  • Bank of Communications (BOCOM)
  • China Cinda Asset Management (Merchant bank / bad bank / publicly listed)
  • China Construction Bank (CCB)
  • China Everbright Bank
  • China Huarong
  • 360 Finance (online)
  • China Merchants Bank (CMB)
  • Huaxia Bank
  • China Bohai Bank
  • Industrial and Commercial Bank of China (ICBC)
  • Ping An Bank
  • Postal Savings Bank of China (IPOed in HK in 2020)
  • Shanghai Pudong Development Bank (has JV with Silicon Valley Bank)
  • Chongqing Rural Commercial Bank
  • China Minsheng Bank (usually shortened to CMSB to not be confused with China Merchant Bank)
  • Huishang Bank
  • Kincheng Bank of Tianjin
    • 360 Finance took a 30% stake

Foreign Investment Banks with China/APAC Presence

  • Maybank Kim Eng Securities
  • DBS Vickers
  • HSBC Securities
  • Macquarie
  • Jefferies
  • Moelis (based in HK)
  • BMO Capital Markets

Chinese Buy Side Firms

Previously, with unlimited cheap debt, many Chinese conglomerates such as HNA Group and Anbang essentially became buy side firms – paying egregious multiples to buy assets. Today, Chinese buy side firms still have plenty of capital, although they are more selective in terms of where to deploy it as the market matures.

Also included are buy side firms with a China focus. These include China private equity and China Venture Capital.

  • Hony Capital
  • China Minsheng Investment
  • Cathay Capital
  • GAW Capital
  • Primavera
  • Legend Capital
    • Lenovo
  • China Southern Asset Management
  • China Development Bank
  • Sailing Capital
  • Cowin Capital
  • E Fund Management
  • Cathay Capital
  • Value Partners
  • IDG Capital
  • Dignari Capital
  • China Pacific Insurance
  • Jingxi Investment Management
  • Silk Road Fund
  • PAG (formerly Pacific Alliance)
  • Guotai Asset Management
  • Fountainvest Partners
  • Zerobridge
  • GGV Capital
  • China Investment Corp
    • See below
  • KKR
  • Blackstone
  • Warburg Pincus China
  • Harvest Global Investments
  • ZWC Partners
  • TTB Partners
  • Ocean Link

Chinese Venture Capital

  • Sinovation Ventures
    • Run by Kai-Fu Lee, ex-Google China head
    • Invested in VIPKid, Meitu, Zhihu, Megvii
  • Qiming Venture Fund
  • Matrix Partners
  • Shenzhen Capital Group
  • DCM Partners (David Chao)
  • Shunwei Capital
  • Sequoia Capital China
    • Invested in Alibaba, Meituan-Dianping, Sina.com, Ganji.com, Ele.me, ZTO Express, VIP.com
    • One of the biggest

Hong Kong Hedge Funds

  • Capula Investment Management
  • Franklin Templeton
  • Anatole
  • Ninety One
    • Previously Investec
  • Central Asset Investments (CAI)
  • Broad Peak
  • Blackrock
  • Oaktree
  • Tor Investments
  • Penta Investment Advisers
  • Sammasan Capital
  • BFAM Partners
  • Nezu Asia
  • Eastspring Investments (fixed income)
    • Part of Prudential UK
  • York Capital Management
  • First State Investments
  • Schroders Investment Management
  • Matthews Asia
  • Hillhouse Capital
    • Famous for managing money for prestigious US university endowments, namely Yale

Chinese Sovereign Wealth Funds and Government Bodies

People’s Bank of China (PBOC)

This is the Central Bank of the People’s Republic of China

State Administration of Foreign Exchange (SAFE)

Run by PBOC and governs foreign exchange reserves. SAFE has authority on whether or not RMB can be moved offshore.

China Investment Corporation (Sovereign Wealth Fund)

Investment vehicle created to diversify China’s foreign exchange holdings and to generate maximum returns for the shareholder (China) on a risk adjusted basis. Investment strategy is long-term hold. 2nd largest SWF after Norges Bank, with a net cumulative return of around 5% as of FYE 2018. Offices are in Beijing, Hong Kong and New York.

Assets are 60% externally managed and approx. 40% internally managed. Has a heavyweight International Advisory Council including Shaukat Aziz (former prime minister of Pakistan and EVP at Citi), Zhou Xiaochuan (former PBOC governor), David Denison (former CPPIB CEO and Element Fleet Management Chair), John Thornton (Brookings Institution Chair Emeritus, Executive Chair at Barrick Gold and former President of Goldman Sachs), Dame DeAnne Julius (Former Chatham House Chair, Bank of England Monetary Policy Committee), Knut Kjaer (Former CEO of Norges Bank Investment Management), and Jean Lemierre (Chairman of BNP Paribas).

Major subsidiaries are CIC International (investments), CIC Capital Corp (CICC) (investment banking and capital markets) and Central Huijin Investment (banks).

40% in public equity, 15% in fixed income and 45% in alternative investments with a long term target of 50% in alternatives.

Public equity is overweight financials, information technology and healthcare.

Subsidiary Central Huijin has controlling and non-controlling stakes in:

  1. China Development Bank
  2. Industrial and Commercial Bank of China
  3. Agricultural Bank of China
  4. Bank of China (Controlling Stake)
  5. China Construction Bank (Controlling Stake)
  6. China Everbright Group (Controlling Stake)
  7. China Everbright Bank
  8. China Export & Credit Insurance Corporation
  9. China Reinsurance
  10. New China Life Insurance
  11. China Jianyin Investment
  12. China Galaxy Financial
  13. Shenwan Hongyuan Group
  14. China International Capital Corporation (CICC) (Controlling Stake)
  15. China Securities Co
  16. Jiantou Zhongxin Assets Management
  17. Guotai Junan Investment Management

National Council for Social Security Fund (NSSF)

Manages NSSF funds – primarily fixed income both onshore and overseas.

Exchange Fund (Hong Kong)

Hong Kong Monetary Authority run sovereign wealth fund.

Core portfolio is to back the HKD peg to the US dollar.

The Future Fund is a growth fund to manage the government’s land sale revenue.

Silk Road Fund

$40 billion fund to support China’s Belt and Road projects. $6 billion has been invested to date.

65% owned by SAFE, 15% owned by CIC, 15% owned by EXIM Bank of China and 5% owned by China Development Bank.

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Matt
ex investment banking associate
https://www.linkedin.com/in/matt-walker-ssh/

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