On May 25th, 2005, China Everbright Bank was officially authorized to be the managing underwriter of short-term financing bonds.In the merely five months since then, the accumulative value of short-term financing notes underwrote by the Bank reached RMB 23.5 billion, accounting for 37.6% of the total market share, winning much acclaim from the industry peers.

Since the launch in the market in April till October 21st, the total value of short-term financing bonds issued had reached RMB 62.5 billion.Among which, CEB underwrote RMB 1.7 billion for China Minmetals Corporation, RMB 10 billion for China Unicom, RMB 2 billion for Jiangsu Communications, RMB 3 billion for Shenhua Group, RMB 1.5 billion for Shanghai Electric Power, RMB 3 billion for Zhejiang Communications, RMB 1.3 billion for Beijing Tourism Group, RMB 1 billion for Beijing Capital Co., Ltd. In the fierce competition with other commercial banks, CEB ended up by winning a third of the market, which is a surprising and success.

CEB has gained competitive edge over its rivals on underwriting short-term financing bonds and taken up the largest market share. The industry experts believe that this is a good demonstration of CEB’s strong overall marketing and innovation capabilities.CEB has wisely grasped the historical opportunity that the proportions of direct financing will significantly increase in the near future.Not long ago, CEB had an outstanding performance in acting as the custodian and manager for Enterprise Annuity Fund and as the agency bank authorized to manage the collection and payment of non-tax revenues for the Central Government, which has proved that CEB is well capable of market exploration and possesses the ability to compete in the “front line” areas.

In fact, CEB’s remarkable performance on underwriting short-term financing bonds must be attributed to the fact that high attention has been paid to this matter.As for this, as told by the Bank’s relevant department head, CEB took part in the entire drafting process of the Central Bank’s Administrative Measures on Short-term Financing Bonds and its supporting documents, cooperated with world class investment banks such as Goldman Sachs, Merrill Lynch and Morgan Stanley, borrowed internationalized issuance mechanism, and trained a first-class business team.In competing to become the fiscal consultant and managing underwriter on specific projects involving issuing bonds by enterprises, the entire bank, including the President, the management team and various departments, put in joint efforts to boost marketing, competing for bigger market share for CEB.

From the height of innovating product types and adjusting business structure, CEB attaches great importance to the business of underwriting short-term financing bonds.Although in the short run the interest rate of short-term financing bonds is much likely to be lower than that of liquid capital loan, which seems to result in some impact on commercial bank loaning, this is good to reduce risks of banks. The risks directly faced by banks can be transferred to the market through the issue of short-term financing bonds.More importantly, the issuance of short-term financing bonds is conducive to boosting market innovation and changing people’s marketing philosophy.As a result, we can see a shift and upgrade from single credit products to financing products portfolio and comprehensive services, from the second-grade market for financial products to the first-grade or second-grade market integrated operation, from traditional interest margin revenue to one-package composite revenue including not just interest margin revenue but also intermediary business revenue. As for outstanding performance customers, CEB offers comprehensive financial services that are one-package and diverse, another strong advantage in competing for outstanding and high-end customers.

Analysis has shown that, in the short-term financing bonds market, there are winners and losers.For large state-owned banks, short-term financing bonds may replace their credit business, especially the liquid capital credit business for outstanding customers, and therefore, in the short run, state-owned banks will face considerable pressure, which probably is not a positive change.Contrastingly, small and medium commercial banks can compete for outstanding corporate clients through underwriting short-term financing bonds and win high-end customers, which used to be a challenging task. By acting as the lead manager, small and medium commercial banks can absorb corporate deposits, which may lead to many other derived businesses, deepen the relationships with these outstanding corporate clients, and expand the business scope for the long term cooperation.

Relevant statistics provided by CEB shows that underwriting short-term financing bonds has brought considerable revenues to the bank, both directly and indirectly, exceeding hundreds of millions of RMB. As a joint stock company with limited resources to start with, CEB has captured the strategic high-point of the market through its sharp market insight and highly efficient actions, winning much envies from its peers.

Relevant sources reveal that, the expected quantity of the issue of short-term financing bonds will be huge this year.This means that the future market scale will be very promising.Having tasted the fruit of success in underwriting short-term financing bonds, CEB will make the best use of its outstanding client-base, professional business team and rich market experience, so as to achieve another success in its future development.