China International Capital Corp., the investment bank thats 34 percent owned by Morgan Stanley, is opening a New York office to trade Chinese stocks in the US
China International, known as CICC, will begin operations in New York as early as this year to better serve its clients, said Jiang Luyang, a company spokeswoman in Beijing.
CICC has leased an office on Park Avenue and will hire as many as 30 people over five years to sell and trade Chinese equities, two people familiar with the plan said. CICC will start with about three employees, said one of the people, who asked not to be identified because of company policy. Luyang declined to comment on the services the bank will offer or its hiring plans.
This reflects the emergence of China, said Jeff Papp, a senior analyst at Lisle, Illinois-based Oberweis Asset Management Inc., which manages $700 million, including Chinese stocks. There are a lot of Chinese companies that want to go public here. They can offer a differentiated product compared with the other banks.
CICC, which is run by Levin Zhu, the son of former Chinese Premier Zhu Rongji, managed in July the initial public offering of China State Construction Engineering Corp., the worlds biggest IPO in 16 months. The sale raised 50.2 billion yuan ($7.3 billion) in Shanghai.
Shanda Interactive Entertainment Ltd, Chinas biggest online-games provider, said yesterday it plans to sell as much as $800 million of American depositary receipts in an IPO of its online-games unit. Changyou.com Ltd, a Beijing-based online game developer, has more than doubled in New York trading since its IPO in April.
The Bank of New York Mellon China ADR Index, which tracks ADRs of Chinese companies, has surged 29 percent this year, compared with a 12 percent gain for the Standard & Poors 500 Index. The Shanghai Composite Index rallied 57 percent this year on prospects a 4 trillion yuan stimulus package and record lending would revive growth in the worlds third-largest economy.
CICC is also the biggest underwriter this year of bond sales in Asia, excluding Japan, according to data compiled by Bloomberg.
New York-based Morgan Stanley invested $35 million in CICC when it was set up in 1995 as the first Sino-foreign investment bank. Morgan Stanley ceded management control in 2000.