Guotai Junan International Holdings Limited
Guotai Junan International Awarded ‘Securities House of the Year’ by Asia Risk

To: Business Editor [For immediate release]
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(Incorporated in Hong Kong with limited liability)

Guotai Junan International Awarded “Securities House of the Year”
by Asia Risk

[14 September 2018, Hong Kong] Guotai Junan International Holdings Limited (“Guotai Junan International“, the “Company” or “Group“, Stock code: 1788.HK) is pleased to announce that the Company has been awarded “Securities House of the Year” by Asia Risk magazine. This is the second time for the Group to win this award during the past 3 years.

Asia Risk stated that “the company’s Customized Indices business, growing FICC capabilities and the China access it provides stood out among peers. Added to that was the increasing risk management sophistication such as exchange rate risk management and interest rate management, which eventually all swung it in the company’s favor”. The Asia Risk Awards has been held for 19 years to recognize best practice in providing services and products in relation to derivative and risk management around the Asia-Pacific region.

Financial Products Business
The Group’s Financial Products team provides a wide range of investment solutions tailored for private, corporate and institutional investors. Clients can enjoy the benefits of the Group’s competitive edge by investing in Structured Notes and Derivatives or Swaps (OTC) across asset classes and markets, which is linked to single stocks, preference shares, portfolios, indices, ETFs, mutual funds, or actively managed strategies and alternative investments.

In addition to well established financial products, the team’s Customized Indices have been well received. Guotai Junan’s clients are able to implement rule-based or actively managed investment strategies by utilizing Guotai Junan’s entire trading capabilities. The Income Growth Indices and AH Relative Value Arbitrage Strategy are prominent examples. Both strategies deliver improved risk adjusted returns with lower volatility and lower downside risk, while significantly reducing trading costs for investors.

The financial products business has been one of the fast-growing sectors in recent years. In the first half of 2018, the company achieved income growth of 271% year-on-year to HKD387 million from financial products business, with a CAGR of over 150% for the past 3 years.

FICC Business
The Group’s FICC Department started its bond issuance and underwriting business (also known “Debt Capital Market”) in 2012. For the past 5 years, the Group participated in over 270 bond issuances, acting as arranger or global coordinator in nearly 70% of the deals. Currently, the company is well known among issuers and market participants for its ability to capture market trend, efficient execution capabilities, prudent selection of deals and diversified distribution channels. In the first half of 2018, the bond underwriting income increased by 75% year-on-year to HKD258 million with a CAGR of approximately 100% in the past 3 years. During the same time, the team has participated in 76 debt issuance activities, and assisted corporations in fund raising of nearly HKD165.3 billion. As at the end of June this year, the team ranked the 2nd in the Asia (ex-Japan) G3 Corporate High-Yield Bond Underwriter League according to Bloomberg (in terms of the issuance amount).

More importantly, the team has been dedicated to managing risks for its clients as well. The team specialized in assisting Chinese issuers to connect with international credit rating system and to acquire advanced experience in the corporate governance and risk management. Moreover, it provides complementary products such as Cross Currency Swap and Interest Rate Swap to the issuers, especially China corporates, to better manage exchange rate risk and interest rate at the companies’ level. On the other side, the team enabled overseas investors to obtain the timely domestic market information and companies’ credit status as well as provided market making service to investors to lower liquidity risks.

Outlook
Despite the uncertainties in the market this year, the Group believes that quality overseas wealth management products and services will be welcomed by the market in the future. Recognition from Asia Risk has been a great honor and encouragement to the Group. Guotai Junan International will continue to provide competitive products and services to investment community and corporate clients.
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About Guotai Junan International Holdings Limited

Guotai Junan International is the market leader and first mover for internationalization of Chinese Securities Company. The Company is the first Chinese securities broker to list on the Main Board of The Hong Kong Stock Exchange by way of initial public offering. Based in Hong Kong, the Company provides diversified integrated financial services. The five core services include: (i) brokerage, (ii) corporate finance, (iii) loans and financing, (iv) asset management, (v) financial products, market making and investments.

The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap & MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan International has been assigned “Baa2 / Prime-2” and “BBB+ / A-2” rating from Moody’s Investor Service and Standard & Poor’s Global Ratings respectively.

Our controlling shareholder, Guotai Junan Securities Company Limited (“Guotai Junan”, Stock Code: 601211.SH; 2611.HK), is the comprehensive financial provider with a long-term, sustainable and overall leading position in the Chinese securities industry. Backed by strong operational support, the Company will be able to further explore the HK and the Asia-Pacific market.

For more information about Guotai Junan International: http://www.gtjai.com.

Porda Havas International Finance Communications Group on behalf of Guotai Junan International Holdings Limited issues the press release.

Porda Havas International Finance Communications Group

Ms. Angela Shi +852 3150 6778 angela.shi@pordahavas.com
Ms. Hera Wong +852 3120 6520 hera.wong@pordahavas.com
Ms. Tracy Chen +852 3120 6514 tracy.chen@pordahavas.com