China Corporate and Investment Banking Awards 2019: CSC
Best Securities House for Domestic Debt Capital Markets
China Securities Co
Having been one of the top three domestic bond underwriters by market share since 2012, China Securities Co (CSC), whose bond underwriting department is headed by Guo Chunlei, has maintained strong growth momentum in recent years, from an already very high base.
During the awards period, CSC saw its bond underwriting volume increase by almost 70% year on year, having executed 20% more bonds than the same period a year ago. This boosted CSC’s market share to 11.38%, making it one of the only two Chinese securities houses with a double-digit portion.
|Guo Chunlei, China Securities Co
An absolute leader in corporate bonds with a 14.65% market share and almost twice as much volume compared with its closest peer during our awards period, CSC has also ranked top for four consecutive years since 2015. It was the lead underwriter for Sinopec Group’s Rmb5 billion ($700 million) three-year bond from last September, and priced the deal at 3.68%, the lowest coupon achieved from a Chinese corporate issuer in 2018.
CSC was also a joint lead underwriter for China Datang’s extendable bonds and snapped up a total of Rmb9 billion for the central government-owned power generator, making it the largest such trade from the sector last year.
It was also involved in the year’s largest bailout bond by the state-owned asset operation and management arm of Beijing’s Haidian district.
In the Nafmii-regulated interbank market, CSC also excelled in both quantity and quality, working on a number of landmark deals including a rare perpetual medium-term note from the property sector by Greentown Real Estate Group.
Ranked number one among all securities houses during our awards period, CSC topped the league tables for MTN, commercial paper and private placement notes.
At the end of last year, it became the first Chinese securities house to set up a credit risk mitigation warrant to support debt financing for private-owned enterprises, and allowed Wumart Holdings to raise Rmb200 million from short-term commercial paper with a 4.8% coupon, the lowest at the time for a similarly rated private issuer.
CSC also focused on expanding in areas such as financial bonds (where it was in second place during our awards period), local government bonds and enterprise bonds, making itself comparable to close peers Citic Securities and CICC. It was an arranger for panda bonds by issuers including Citic Pacific in its latest May 2019 deal, according to data by GlobalRMB, Asiamoney’s sister publication.
The secret to CSC’s success lies in its continuous efforts in developing local clients alongside its top-notch central state-owned enterprise clientele featuring the likes of PetroChina, China General Nuclear, China Railway, State Grid and Three Gorges.
It is also a trusted partner for local SOEs and government financing vehicles such as Beijing Enterprises Water Group, Guangdong Road and Bridge Construction Development, as well as private companies including SF Express, Country Garden and China Evergrande Group.