Introduction  
 
CICC established two wholly owned private equity arms, namely CICC Jia Cheng Investment Management Company Limited (CICC Jia Cheng) and CICC Investment Group Company Limited (CICC IG), for domestic RMB and overseas USD investments respectively, with a focus on growth capital, pre-IPO and buyout investment opportunities. CICC Jia Cheng set up a joint-venture, Jin Pu Industrial Investment Management Company Ltd., which will raise and manage the Shanghai Financial Industry Development & Investment Fund, a fund with an approved size of RMB20 billion. It will focus on restructuring, IPO and buyout opportunities of large enterprises in the financial and other sectors of China. CICC Jia Cheng and CICC IG invest in quality companies with long-term growth potential, sustainable competitive advantages, and high-caliber management teams. With in-depth understanding of Chinese economic and business landscape, CICC’s private equity subsidiaries facilitate the growth of industrial leaders and improve their enterprise values through operational and financial enhancement.

Core strengths of CICC's wholly-owned private equity subsidiaries:

● They have deep understanding in the local market and the regulatory environment. In addition, they have extensive experience in restructuring and managing IPO for Chinese enterprises. All these equip them with sophisticated insights in Chinese economy, domestic industries and corporate practices. Their expertise enhances their portfolio companies to develop sustainable growth strategies; to improve corporate governance; and to implement effective incentive programs.
● With a global perspective and extensive international network, they facilitate Chinese enterprises to grow in line with the best international practices. By introducing more sophisticated management skills and advanced technologies, they help to enhance the competency of Chinese enterprises in penetrating global markets.
● Continuous value creation and enhancement will also be carried out by leveraging CICC's capabilities in a full range of financial services, including fundraising, M&A, and advisory. Also, by leveraging on CICC’s existing prestigious client bases, mainly on industry leaders of a wide range of sectors, they can facilitate their portfolio companies to establish cooperative ties with the industry leaders.
● They offer a team of world-class and seasoned professionals with extensive experience in direct investment, corporate finance, restructuring, IPO and M&A. These professionals have successfully originated and executed deals with a wide variety of industries, company life cycles, transaction structures and ownership structures. Thus they posses a solid ground for more efficient and effective post-investment value creation.
● They provide highly disciplined investment process management, stringent compliance with laws and regulations, and prudent risk control systems.

The commitment of CICC's private equity subsidiaries to clients is the full value behind CICC's brand name and corporate philosophy. The unequivocal capital commitment, brand name enhancement and professional services from CICC's private equity subsidiaries offer powerful support to clients for their business growth, financial management and capital market operation.

Disclosure

In order to prevent conflict of interest, transfer of interest, black box operation and moral hazard, CICC and CICC Jia Cheng have each set up a comprehensive internal control system to strengthen risk control and compliance management. Relevant information is disclosed as follows:

Information on Prevention of Conflict of Interest by CICC

Information on Prevention of Conflict of Interest by CICC Jia Cheng