Up to now, JPMorgan Chase has completed 65,438+04 capital financing projects (including IPO, additional issuance and bond issuance) in 2006, with a total amount of 7.639 billion US dollars. Nine M&A projects achieved leap-forward growth, with a total amount of 6.737 billion US dollars. Although JPMorgan Chase failed to participate in CCB and ICBC, the two largest overseas listed companies in China, he was confident. He believes that after the listing of super-large banks, JPMorgan Chase's competitive advantage in the investment banking market will be more prominent. Any success is based on the accumulation and cultivation of the past years, but in the critical period, the correct strategy and effective execution can help to add icing on the cake. The successful implementation of the dumbbell strategy is the magic weapon for JPMorgan Chase 20 12 to realize the leap-forward growth.
The so-called dumbbell strategy refers to the customer-oriented system, which pays equal attention to large enterprises and small and medium-sized enterprises. On the one hand, it focuses on traditional big customers, mainly large state-owned enterprises; on the other hand, it focuses on private enterprises and cutting-edge enterprises in emerging industries, expanding the scale and types of customer base, and other business departments provide comprehensive services for the front-end customer market. After experiencing the situation that large overseas listed companies dominated the world in the early days, medium-sized enterprises and emerging enterprises are gradually becoming the new favorites of the capital market.
This is a motive of JPMorgan Chase's "Dumbbell Strategy". Judging from the report card of JPMorgan Chase in 2006, both ends of dumbbells grew in a balanced way, including traditional big customers such as CNOOC, Zhonghaihua, Ruian and China Merchants Bank, and medium-sized customers such as R&F Real Estate, Greentown and Chaoda Agriculture.
The biggest challenge for JPMorgan Chase in the future lies in the opportunity cost. This means that the cost of decision-making increases. Due to the limited disposable resources, once a project A is decided, other projects must be abandoned, but the risk lies in whether project A is worth doing or better than other projects. Sometimes, it will test the judgment and service quality of an investment bank.
Large enterprises are good projects, sometimes it may be more obvious. However, exploring good SME projects may sometimes be a greater test for investment bankers' vision and judgment and the differences in investment banking services.
JPMorgan Chase has formed a set of value and service system in the selection and service of medium-sized enterprises, and will gradually become a new competitive selling point. "Dumbbell strategy" also needs efficient internal coordination. Within two weeks in September, JPMorgan Chase completed five stock market projects, belonging to different industry sectors; Only on September 2nd1day, there were four projects in JPMorgan Chase Asia-Pacific region, including two China companies and two Korean IPOs, and each project was at high-end pricing, with an increase of 10%-20% after listing. "Each project must meet at least 80- 100 institutions and funds. Get used to the time difference in different places, hold a global conference call, and you may one day talk to a big fund about his different projects. The largest shareholder who is good at innovation, in JPMorgan Chase's performance, not only comes from the prosperity of IPO market, but also from the substantial growth of secondary market. JPMorgan Chase is a shareholder of almost all H-share or red-chip listed companies in large state-owned enterprises in China. Some are the top three shareholders, and some hold 30%.
This is an unparalleled record of other foreign investment banks. In 2006, the total market value, total turnover and the amount of newly listed funds all reached record highs, and both H shares and red chips achieved substantial growth. Part of the shares held by JPMorgan Chase come from JPMorgan Chase's self-operated funds; Part of it is held through funds, and the other part is specially used for secondary market operations such as securities lending and derivatives.
Many stocks that are actively traded are inseparable from JPMorgan Chase. A new financing method tailored for medium-sized enterprises-the combination of pre-listing financing and IPO financing in the equity market-is JPMorgan Chase's specialty. Many investors who like high growth are interested in small and medium-sized enterprises with growth potential, and the financing methods of small and medium-sized enterprises have begun to try more advanced and diversified financing methods. JPMorgan Chase is getting better and better in China. A big background is that its global integration is basically completed, and it pays more attention to the China market. According to the relevant agreements of WTO, after 65438+ in February 2006, China's financial industry will be fully open to foreign investment. Judging from the public statement made by the securities regulatory authorities in China, the opening-up of the securities market in 2007 will also greatly increase.
Obviously, the securities market will be the first choice for foreign investment banks. JPMorgan Chase's latest regular questionnaire survey on global institutional investors shows that 43% of institutional investors are "bullish" on the China stock market in 2007, 55% of the respondents have already held China shares, and 26% of the respondents indicated that they will buy them within 6- 12 months.
In 2004, JPMorgan Chase's Morgan Flynn Asset Management Company and Shanghai International Trust and Investment Co., Ltd. jointly established Shangtou Morgan Flynn Asset Management Company, with JPMorgan Chase holding 49% of the shares. In 20 13, JPMorgan Chase obtained an additional investment quota of $0/0 million from CSRC, and its total QF II increased to $0/0/500,000.
It is rumored that JPMorgan Chase Securities and Liaoning Securities are discussing joint ventures. Although JPMorgan Chase declined to comment, almost all foreign investment banks are interested in the plan of domestic securities firms to seize the beach. JPMorgan Chase is also allowed to provide foreign companies with a full range of RMB business and global risk management financial tools and services, including capital market financing, financial consultancy, pension fund business and cash management.