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As China’s oldest securities firm, Shanghai-based Shenyin & Wanguo Securities Co Ltd (hereinafter “SWS”) has earned a reputation as one of China’s most respected brokerage houses. Founded in July 1996 out of the merger of the former Shanghai Shenyin Securities Co and Shanghai Wanguo Securities Co, SWS now claims registered capital of RMB 6.7 billion and staff of 2,985.

China Huijin Investment Co Ltd, which is under China Investment Corporation, is the largest shareholder with 37% stake. The second to fifth largest shareholders are China Everbright Co. (12.5%), Shanghai Jiushi Co. (9.65%), Shanghai International Group (8.45%) and Shanghai State-owned Asset Operation Co. (5.67%). 


Subsidiaries and Affiliates
In 1992 SWS set up Shenyin Wanguo Research & Consulting Co Ltd as an independent research company, which is the largest securities research and consulting institution in China. It has been voted as the “Most Influential Research Team in China” by fund managers from 2004 to 2007.
SWS also operates a Hong Kong-listed subsidiary-Shenyin Wanguo (H.K.) Ltd. Shenyin Wanguo (HK) Ltd was formerly Ong Holdings (HK) Ltd, which went public in Hong Kong in February 1973. In June 1993, it was acquired by a consortium led by Shanghai Wanguo Securities and was renamed to Shanghai Wanguo (HK) Ltd. In July 1996 when the merger took place, the company was renamed into Shenyin Wanguo (HK) Ltd in November 1996. SWS is the only domestic securities house in China which owns a listed subsidiary at overseas markets
SWS owns interest in two joint-venture mutual fund companies, i.e. Fullgoal Fund Management (by cooperating with Bank of Montreal of Canada) and SWS BNP Paribas Asset Management (by cooperating with French BNP Paribas Asset Management), which were incorporated in 1999 and 2004 respectively.
In 2007, SWS acquired Sichuan Tianyi Futures Brokerage Co Ltd and restructured it into Shenyin Wanguo Futures. The company is a full-license member at Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and China Financial Futures Exchange. Apart from commodity trading, it is now preparing for the launch of index futures in China.
In 2008, SWS was approved to start private equity business. SWS was one of the 11 brokers which participated in margin trading and securities lending testing.


Securities Brokerage
SWS as a group is a full-service securities house covering brokerage business in A-share, B-share, H-share, fixed income products, and futures contracts. The firm has a strong client base in China, with 110 branches and 31 satellite offices in 44 Chinese cities catering to over 2.7 million retail clients and over 300 institutional clients including China National Social Security Fund, all fund management firms, insurance companies, etc. We are one of top 3 brokers by aggregate trading amount in 2007, and top one broker by commission revenue from institutional investors in China in 2007.

Investment Banking Business
The firm was one of a select group of underwriters for the blockbuster IPO of Industrial and Commercial Bank of China (ICBC) in 2006. As of end 2007, SWS has been lead underwriter for 180 A-shares (or 12% of the total listings) and 38 B-shares (or 34.9% of the total listings). SWS has been a pioneer and first-mover in primary equity market:

  1. On November 18, 1984: issuing the first A-share, Shanghai Feilo Acoustics (600651.SH).
  2. On January 21, 1992: underwriting the first B-share, Shanghai Vacuum Electron Devices (900901.SH).
  3. In September 2006: co-lead underwriter of ICBC (601398.SH), the largest IPO ever in global capital market.
  4. In December 2006: underwriter and sponsor of Zhejiang Netsun (002095.SZ), the first “dot-com” stock in A-share market.


The firm is a qualified underwriter for fixed income securities issued by government, banks and firms. The Fixed Income Team is dedicated to fixed income pricing, financing, underwriting, sales & investment business. We are a bellwether in primary market by being the lead underwriter of Three Gorges Bond, Shanghai 2010 Expo Bond, etc.

International Business
Now, as China’s capital markets open up to the world, SWS stands well-positioned to profit from servicing a blue-chip clientele of both foreign and domestic clients via the Qualified Foreign Institutional Investor (QFII) and Qualified Domestic Institutional Investor (QDII) programs.
SWS has a long history of working with foreign clients, starting with more than a decade of experience in the B-shares (dollar-denominated) market. In 1992, the firm issued the first B-share as the lead underwriter in China, and it maintains a dominant position in the B-shares market today. In 2003, when the QFII program allowing access to the A-shares (yuan-denominated) market was launched, SWS was once more a pioneer. It became the first securities company to be chosen as a local broker (for UBS).

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