CICC 2020 Annual Results Briefing

To provide our investors with a more comprehensive and in-depth understanding of CICC’s 2020 annual results and business operation, the Company hosted the 2020 Annual Results Briefing via the “Shanghai Stock Exchange Infomation” platform ( on April 8, 2021 (Thursday) at 16:00-17:00 . Main content of the meeting is as follows:


Attendees of CICC: Mr. Shen Rujun, Chairman of the Board of Directors; Mr. Liu Li, Independent Non-executive Director; Mr. Huang Zhaohui, Chief Executive Officer; Mr. Wong King Fung, Chief Financial Officer; Mr. Sun Nan, Secretary to the Board of Directors, and staff from related departments.


Sun Nan: Dear investors, good afternoon! Welcome to the 2020 Annual Results Briefing of China International Capital Corporation. Today, we will conduct in-depth conversation with you on the Company’s 2020 annual results and business operation. Now the floor is open.


Investor: Could you explain the loss of RMB9.3 billion and RMB9.9 billion in derivative financial instruments under the investment income and the fair value variation, respectively? What are the main risks of this business?


Wong King Fung: To meet customers’ needs, the Group has reached an agreement on OTC derivatives transactions with customers, under which the Group obtains fixed income, meanwhile purchases and holds targeted financial assets to hedge relevant market risks. The fluctuations in the valuation of derivative financial instruments would offset the fair value variation of trading securities. Taking into account the hedging, the market risks and the P&L fluctuations of the Group borne by fair value variation of the targeted assets under the OTC derivatives transaction agreement are limited.


Investor: Good afternoon, Mr. Shen. How is the compensation level of  CICC compared with that of its domestic peers and top foreign investment banks? Thank you!


Shen Rujun: CICC has always followed a market-oriented system and mechanism since its establishment. The 2020 remuneration of CICC, with no significant difference compared with that of top listed securities firms, has already been disclosed in the Company’s annual report. In terms of business structure, the Company is dominated by institutional business including investment banking, equities, fixed income, asset management and private equity, accounting for 73% of the Group’s operating revenue in 2020. For personnel structure, due to relatively high degree of internationalization, CICC boasts a large proportion of overseas employees, whose compensation benchmark against that of international investment banks. According to their annual reports, the per capita salary of leading overseas investment banks in 2020 was around US$300,000.


Investor: What is the difference between CICC’s derivatives business and that of foreign investment banks? How come your risks are controllable while some foreign investment banks are suffering from implosion? Could you elaborate a bit more on CICC’s derivatives business ?


Huang Zhaohui: Thank you for your question. Our company takes a more prudential risk control of derivatives business from multiple dimensions such as the selections of counterparties, margin requirements, concentration levels, and VaR exposures to strickly control the risks of derivatives business. Our company also implements dynamic monitoring of market risks exposed by positions and effectively resolves risks in a timely manner.


Sun Nan: Dear investors, this is the end of the CICC 2020 Annual Results Briefing. We extend our sincere appreciation for all of you. Should you have any questions in the future, please feel free to communicate with us through our investor relations email and hotline, etc. Thank you for your strong support for CICC!