After China Cosntruction Bank (CCB) was rewarded Best Domestic Bank, Best Deal in Asia, Best Equity Issue and Best IPO by The Asset Triple A, on the ceremony of FinanceAsia of January 20, CCB again was received awards of Deal of the Year, Best Equity Deal, Best IPO and Best Privatization. And Chairman Guo Shuqing of CCB was awarded as the “Captial Market’s Person of the Year”.

Established in 1996, FinanceAsia is Asia’s leading financial publishing company based in Hong Kong. It offers readers insights on latest news and trends of Asia securities, equity market, corporate governance, fund management, merger and acquisition, cash management, risk management, etc.

FinanceAsia remarked that China Construction Bank (CCB) ranks as the world's largest IPO in five years and the largest ever from Asia ex-Japan. Its size, valuation and subsequent trading level all go to show what a remarkable feat the bank and its lead managers (CICC, Credit Suisse First Boston and Morgan Stanley) were able to pull off. CCB had proved itself during secondary market trading, and thus, there was never any doubt that this was the deal of the year bar none.

FinanceAsia also praised CCB’s introduction of strategic investors, and it said, “It was the considerable restructuring work that had taken place at CCB, which enabled the bank to hit the valuation it did. Of particular importance, was the seal of confidence offered by Bank of America, which spent $3 billion to acquire a 9% stake in the bank - the largest ever-single foreign investment in a Chinese entity. Investors were not only comforted by the size of the investment, but also the fact that Bank of America placed 50 of its staff in key areas at CCB including IT and risk management, as well as on the corporate governance and audit committees.”

FinanceAsia indicated that CCB issued 30.5 billion shares through an initial public offering (IPO) at price of HK$ 2.35, with a total amount of approximately 71.6 billion Hong Kong dollars. It said, “Like every successful IPO before it, CCB was able to leverage these different demand constituencies in order to secure a premium valuation. Many wonder whether it had pushed pricing too far and would trade down - if not immediately then certainly when the greenshoe was used up.As it was, strong follow through buying proved the doubters wrong and the greenshoe was exercised in full. As of December 14, CCB was trading about 9% above issue price at HK$2.55 per share.”

FinanceAsia praised, “Its deal is a landmark and one which future bank IPO's from China will find hard to beat. For the Chinese government, the deal's success also provides a massive vote of confidence in the way they have restructured a financial system.”