The Charm of Capital: The Eastern Dance Steps of ICBC's IPO

Author: Sun Lingyan
Publisher:
Publish Date: 2005-11-01
Features: The author of this book was fully involved in the news and public relations reporting of the Bank of China's stock reform and listing in Hong Kong. With valuable news materials and personal interview experiences, he recorded this historical period, rationally summarizing and analyzing its lessons, making this book a specialized work on news and documentary reporting of the Bank of China's listing in China. The author has been tracking the news reporting of the stock reform and listing of the Bank of China and other state-owned commercial banks since the beginning of 2004, covering every important step and measure of the Bank of China's stock reform and listing through public reports. In the book "The Charm of Capital," he first revealed many unknown figures and stories behind the scenes of the stock reform, giving the book strong news value, storytelling quality, and readability, as well as precious historical and research reference value.
The author, with a spirit of cold rationality and scientific exploration, summarizes and analyzes fresh experiences such as the state's injection of foreign exchange reserves to launch the Bank of China's stock reform, the market-oriented separation of non-performing loans through the second round of disengagement, the issuance of subordinated bonds according to international conventions to supplement subsidiary capital, the joint establishment of a joint-stock company by large state-owned enterprises, the premium transfer of shares above book value to introduce overseas strategic investors, the exploration of a "one-time injection, two-time transfer" model for state-owned financial assets, the full circulation of shares and the expansion of opening-up for state-owned financial holding commercial banks, and the successful IPO and listing on overseas capital markets in accordance with international capital market rules.
When analyzing the lessons left by the stock reform, the author points out that the marketized assessment standards for the second round of non-performing asset disengagement should be further formulated and improved. When introducing overseas strategic investors, in addition to ensuring reasonable competitive returns on the transfer price, attention should be paid to the "aggressive tendency" of international large investment institutions like Temasek towards China's financial industry, and the potential new financial risks and national financial security issues that may arise. As the state-owned controlling shareholder of Bank of China shares, China Investment Corporation (CIC) should, while maintaining strict self-discipline, also accept social supervision and market constraints.
This book is highly relevant, reference-worthy, and practically significant for the upcoming overseas IPO plans of China Merchants Bank shares and Industrial and Commercial Bank of China shares, which are scheduled for the first and second halves of next year, in terms of advancing the ongoing introduction of overseas strategic investors and overseas issuance and listing efforts.