China Galaxy Securities

THE SCOOP

Come together

China Galaxy Securities was officially founded in August 2000 with startup capital of RMB 4.5 billion.  Though China Galaxy may seem like the new kid on the block, it actually draws from the experience of five of China's most established companies.  China Galaxy comprises trust and investment companies drawn from China Construction Bank, Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China and China Life Insurance Company.  As of 2009, this joint effort is the third-largest underwriter in China with 14 percent of the market share, behind only CITIC Securities and China International Capital Corporation (CICC).

China Galaxy provides high-end investment banking services to corporations, financial institutions, governments and high-net-worth individuals.  The firm's divisions include a full securities brokerage, initial public offering (IPO) underwriting and recommendation, mergers and acquisitions (M&A), financial consulting, asset management, portfolio investment, fund management and market research.

Mining for coal

China Galaxy has scored big on energy deals recently, specifically by advising China's two largest coal producers on their public debuts.  China Galaxy coadvised China Coal Energy Co., the second-largest coal producer in China, on its entrance into the Shanghai stock market in February 2008.  Though the market was increasingly volatile in the months before China Coal's debut, the firm still was able to raise RMB 3.12 trillion in orders, a share sale that was approximately 121 times oversubscribed.  On Feb. 1, 2008, its first official day of trading, China Coal opened at RMB 24 per share, up 42.6 percent from its IPO price of RMB 16.83 per share.

Playing with the big boys

China Galaxy's deals in 2007 placed it in the company of some of the biggest investment banks in the world as the bank earned itself prime rankings on the Thomson Financial (now Thomson Reuters) league tables.  China Galaxy was ranked No. 10 on the equity capital markets chart for Asia (excluding Japan and Australia) behind global banking giants UBS, Morgan Stanley and Citi as well as domestic competitor CITIC Securities.  The bank's percentage of the market share actually went down 0.3 percent from 2006 to 3.5 percent.  However, it moved up one spot in the rankings, placing it in the all-important top 10 with $7.7 billion raised on its four issues.

Bocom blossoms

In China, 2007 was a year of IPO fever as hot stocks hitting the market seemed to set new records each day.  China Galaxy was involved in one of the earliest record-setting IPOs of the year in April when it helped to arrange the sale of Bank of Communications Ltd. (BoComm), China's sixth-largest bank.  BoComm managed to raise RMB 1.45 trillion in subscriptions prior to its Shanghai stock exchange debut.  Shares were priced at RMB 7.9 each.  In total, the firm earned about USD$3.3 billion on the sale.  In 2008, however, China Galaxy Securities posted total profit of RMB 330.74 million, down by 10.34 percent year over year.

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China Galaxy Securities


No. 35, Jinrong Avenue
Xicheng District
Beijing 100032
Phone: (021) 962,188
Fax: 010-66568536
www.chinastock.com.cn

STATS


  • Employer Type: Private
  • Chairman: Li Ming
  • 2009 Employees: 4,000

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