Why UBS? UBS has a unique position with its holistic China offering. UBS brokerage business in China. QFII Domestic A-share brokerage business QDII

Transcription

1 Why UBS? UBS has a unique position with its holistic China offering UBS brokerage business in China QFII Domestic A-share brokerage business QDII A Share Research Coverage : 269 stocks / 27 analysts (total 55) UBSS has the biggest research coverage amongst all the JV brokers UBS was ranked 3rd All-China Best Sales force by Institutional Investor* and holds the biggest market share of 14.58% in Events and Conferences in China. (*Source: Institutional Investor 2012 Survey) Sales Service: China 12 Sales / 7 CTE QFII and RQFII business taking approximately 20% and 30% market share respectively Only broker that has DMA access in China: smart algos includes DMA+ / VWAP / TWAP / VIL / IS UBS AG Hong Kong Bridge to rest of world Cross-border activities M&A activities QFII / RQFII, QDII * First QFII in China and largest international investor in the A-share market since July 2003 USD 1.14 billion QFII quota granted by SAFE (UBS AG & UBS AM). NAV c$4.5bn Ranked as Top 3 China research provider by Institutional Investor and Asiamoney from * QFII: Quota granted to offshore institutional investors to invest directly in onshore financial products via onshore brokers. UBS AG Ldn has largest QFII quota (~US$4.5bio) used for client business via Delta1 access products and for trading. RQFII: RMB denominated quota granted to offshore ETF/mutual funds to invest directly in onshore financial products via onshore brokers. QDII: Quota granted to onshore mutual funds to invest in offshore financial products. Source: SAFE for QFII and RQFII quota Other QFII ad RQFII data are UBSS estimation (no official data available). 1

2 UBS in China UBS Securities Ltd (UBSS) was officially registered in December 2006 and was the first foreign invested securities firm in China with full licenses to conduct businesses including securities brokerage, securities investment consultancy, financial advisory related to securities trading and securities investment activities, securities underwriting and sponsoring, securities proprietary trading, and securities asset management. Given the seamless and integrated work that the UBSS onshore and UBS AG offshore trading, operations, technology and Legal & Compliance teams have undertaken in recent years, UBS was at the forefront in terms of offering QDII customers onshore as well as QFII customers offshore with the ability to place orders directly into the A share market in both Shanghai and Shenzhen as well as offshore into global markets. UBSS was the first broker to offer algorithmic access to both onshore and offshore customers into the A share market, utilising best in class global trading technologies, platforms, analytics and execution consulting expertise. QFII Shanghai Stock Exchange Domestic Mutual Funds 瑞 银 Local Corporate Accounts Shenzhen Stock Exchange Local Sunny Funds / Trust Funds 2

3 Development of UBS in China UBS has long-term commitments to the China capital markets and has played an increasingly important role in China through strategic investments UBS QFII license, the first to be granted in China For illustrative purpose only First presence in China Securities Representative Office in Beijing First QFII License awarded with largest quota Allows UBS to offer it s clients a new range of investment opportunities and unprecedented access to China local markets Opening of UBS Beijing Bank Branch Enable UBS FX, Rates and Credit (FRC) and UBS Wealth Management to facilitate foreign currency deposits, remittances and some loans Place the Bank an essential step closer to the granting of Renminbi license 49% stake in UBS SDIC Fund Management Co. Ltd Continue the growing interest UBS has in the Chinese financial services industry The JV can capture new opportunities in Chinese investment management market Establishment of UBS Securities The first foreign financial institution to acquire effective direct control of a domestic securities firm Reflects UBS longstanding commitment to China Become a catalyst for the broader transformation of China s securities industry First dedicated QDII team in UBS HK China QDII s FIRST overseas investment was done through UBS Provide comprehensive coverage of both global and local knowledge for domestic funds, Insurance co., sovereign wealth funds, pension funds and other institutional investors UBS (China) Limited (WFOB) set up in BJ Converted from UBS AG Beijing Branch First trade of threeweek inter-bank lending of USD 50 million. A critical prerequisite to conduct the broad range of Rmb business key to the success of firm s UBS WM & UBS FX, Rates and Credit (FRC) business in China Early 1990 s May 2003 Aug 2004 Apr 2005 Sept 2005 Oct 2007 July 2012 UBS has been deeply involved in China capital markets reform 3

4 UBS Provides Unparalleled Local Execution Platform A comparison of china brokerages' execution capabilities: Execution Capabilities UBS Local Brokers 1 Global Fix connectivity Y N Basket / Program trading capability Y N Sales trading interface with execution function Y Y Auto control switch order function (dollar neutral) Y N Risk control for same day buy and sell Y N Commission adjustment in trading system Y N Auto basket load (any client format) into trading system Y N Standardized bilingual output for single stock basket trade executions Y Y Auto generated execution update report by / Bloomberg Y N Advanced ALGO strategies, including TWAP / VWAP / IS / Volume inline / Price inline / Float Y N UBS has invested significant resources to build a world-class execution platform capable of processing customized order instructions. Notes: 1 Those information are based on UBSS estimate and understanding of local brokers. It is a comparison between UBSS and a sample or of local broker in china. 4

5 UBS Algorithms & Analytics in China Algorithms launched in China Volume Weighted Average Price (VWAP) Time Weighted Average Price (TWAP) Volume Inline Implementation Shortfall (IS) Float Hidden UBS Fusion. Analyze, Manage, Learn. UBS Fusion is our web-based analytics platform with pre-, intra-day and post-trade TCA tools. We provide complete transparency over the entire trading process, so you know how, where and when your order was executed. Source: UBS internal system For illustrative purposes only. 5

6 UBS Technology Extremely fast Execution of Basket Orders Basket orders will reach the market with only a few clicks Source: UBS internal system and UBSS local OMS (Rootnet) For illustrative purposes only. 6

7 UBS Best foreign investment bank in China Unique platform spanning international and local markets Deep understanding of local market practice and international best practice Securities Times Best M&A House (2012) Best IPO Deal (2012) Best Joint Venture Investment Bank ( ) Best M&A deal in China (2010 & 2012) Best deal with investment value SPDB non-public offering (2010) Best re-financing Deal in China ( ) Best Bond Deal (2012) New Fortune Magazine Top Ten Best Investment Bank #6 (2013) Best Overseas Research Institution, 3 rd (2012) Top Ten Most Respected Investment Bank ( ) Best Placement Deal ICBC; CMB (2011) Best Bond Deal Sinopec, China Railway (2011) Best CB Deal Gehua (2011) Best Business Ability for Large Deals (2010) Best Local IBD Team (2010) Best IPO Deal China Merchant Securities (2010) Best Rights Issue SPDB (2010) China Times Golden Cicada Best Foreign Investment Bank in China (2009) Global Finance Best Qualified Foreign Institutional Investor Bank ( ) Finance Asia Rank No.1 in Cash Equities Trading (2010) Rand No.1 in Best Analyst (2010) Best Equities Derivative House in China ( ) Best Foreign Investment Bank in China (2009) Best Equity House (2009) Best FIG House (2009) Best Domestic Debt - China Merchant Bank (2009) Best Private Equity Deal - Blue Star (2009) Euromoney Best Equity House in China (2012) Best Foreign Bank in China (2011) Best Debt House in China ( ) Asian Investor Best Algo Trading in Asia (2010) International Financing Review Securities JV of the Year (2012) Equity Deal of the Year China Communications Construction IPO (2012) Best Equity House in Asia Pacific (2003, ) 7

8 Disclaimer By accepting this document, the recipient agrees to be bound by the following obligations and limitations. This material has been prepared by UBS AG and/or its affiliate thereof ("UBS"). This material is for distribution only as permitted by law. It is not prepared for the needs of any specific recipient. It is published solely for information and is not a solicitation or offer to buy or sell any securities or related financial instruments ( Instruments ). UBS makes no representation or warranty, either express or implied, on the completeness or reliability of the information contained in this document ( Information ) except that concerning UBS AG and its affiliates. The Information should not be regarded by recipients as a substitute for using their own judgment. Any opinions expressed in this material may change without notice and may be contrary to opinions expressed by other business areas of UBS as a result of using different assumptions or criteria. UBS is under no obligation to update the Information. UBS, its officers, employees or clients may have or have had an interest in the Instruments and may at any time transact in them. UBS may have or have had a relationship with entities referred to in the Information. Neither UBS nor any of its affiliates, or their officers or employees, accepts any liability for any loss arising from use of the Information. This presentation is not a basis for entering into a transaction. Any transaction between you and UBS will be subject to the detailed provisions of the term sheet, confirmation or electronic matching systems relating to that transaction. Clients wishing to effect transactions should contact their local sales representative. Options, derivative products and futures are not suitable for all investors, and trading in these instruments is considered risky. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this presentation. Prior to entering into a transaction you should consult with your own legal, regulatory, tax, financial and accounting advisers to the extent you deem necessary to make your own investment, hedging and trading decisions. This presentation is not a basis for entering into a transaction. Any transaction between you and UBS will be subject to the detailed provisions of the term sheet, confirmation or electronic matching systems relating to that transaction. Clients wishing to effect transactions should contact their local sales representative. For Instruments admitted to trading on an EU regulated market: UBS AG, its affiliates or subsidiaries may act as a market maker or liquidity provider (in accordance with the interpretation of these terms in the UK) in the Instrument. Source for all data and charts (if not indicated otherwise): UBS AG and/or its affiliate thereof ("UBS"). United Kingdom and the rest of Europe: Except as otherwise specified herein, this material is communicated by UBS Limited, a subsidiary of UBS AG, to persons who are eligible counterparties or professional clients (as detailed in the PRA and FCA Rules) and is only available to such persons. The Information does not apply to, and should not be relied upon by, retail clients. UBS Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. France: Prepared by UBS Limited and distributed by UBS Limited and UBS Securities France S.A. UBS Securities France S.A. is regulated by the Autorité des Marchés Financiers (AMF). Where an analyst of UBS Securities France S.A. has contributed to this material, the material is also deemed to have been prepared by UBS Securities France S.A. Germany: Prepared by UBS Limited and distributed by UBS Limited and UBS Deutschland AG. UBS Deutschland AG is regulated by the Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin). Spain: Prepared by UBS Limited and distributed by UBS Limited and UBS Securities España SV, SA. UBS Securities España SV, SA is regulated by the Comisión Nacional del Mercado de Valores (CNMV). Russia: Prepared and distributed by ZAO UBS Securities. Switzerland: These materials are distributed in Switzerland by UBS AG to persons who are institutional investors only. Italy: Prepared by UBS Limited and distributed by UBS Limited and UBS Italia Sim S.p.A.. UBS Italia Sim S.p.A. is regulated by the Bank of Italy and by the Commissione Nazionale per le Società e la Borsa (CONSOB). Where an analyst of UBS Italia Sim S.p.A. has contributed to this material, the material is also deemed to have been prepared by UBS Italia Sim S.p.A.. Israeli: UBS AG and its affiliates incorporated outside Israel are not licensed under the Investment Advice Law. This material is being issued only to and/or is directed only at persons who are Sophisticated Investors within the meaning of the Israeli Securities Law and this material must not be relied or acted upon by any other persons. Whilst UBS AG holds insurance for its activities, it does not hold the same insurance that would be required for an investment advisor or investment marketer under the relevant Investment Advice Law Regulations. South Africa: UBS South Africa (Pty) Ltd. and UBS AG are authorised financial services providers in South Africa. All banking services are provided by UBS AG, Head Offices in Switzerland. UBS South Africa (Pty) Ltd. and UBS AG are not authorised to conduct the business of a bank in South Africa. United States: These materials are distributed by UBS Securities LLC (member NYSE, FINRA and SIPC) or UBS Financial Services Inc. (member FINRA and SIPC), subsidiaries of UBS AG, or solely to US institutional investors by UBS AG or a subsidiary or affiliate thereof that is not registered as a US broker-dealer (a "non-us affiliate"). Transactions resulting from materials distributed by a non-us affiliate must be effected through UBS Securities LLC or UBS Financial Services Inc. Canada: This material is distributed by UBS Securities Canada Inc., a registered investment dealer in Canada and a Member-Canadian Investor Protection Fund, or by another affiliate of UBS AG which is registered to conduct business in Canada or otherwise exempt from registration. Hong Kong: The materials relating to equities and other securities business and related research, are distributed in Hong Kong by UBS Securities Asia Limited. The material relating to corporate finance, foreign exchange, fixed income products and other banking business and related research are distributed in Hong Kong by UBS AG, Hong Kong Branch. Singapore: Distributed by UBS Securities Pte. Ltd or UBS AG, Singapore Branch. Japan: This material is distributed in Japan by UBS Securities Japan Co., Ltd., a registered financial instruments business operator, or by UBS AG, Tokyo Branch, a licensed bank. For further details of our local services, please call your regular contact at UBS in Japan. Australia: These materials are distributed in Australia by UBS AG (Holder of Australian Financial Services Licence No ) and UBS Securities Australia Ltd (Holder of Australian Financial services Licence No ) to persons who satisfy the definition of wholesale client for the purposes of the Corporations Act 2001 (Cth) and are not intended for distribution to any retail clients. UBS AG, Australia Branch is an authorised foreign Authorised Deposit-taking Institution under the Banking Act 1959 (Cth), and is supervised by the Australian Prudential Regulation Authority. However, it is important for you to note that any products or transactions described herein are not deposit products and will not be covered by the depositor protection provisions set out in Division 2 of the Banking Act 1959 (Cth), as these provisions do not apply to foreign Authorised Deposit-Taking Institutions. New Zealand: The information and recommendations in this publication are provided for general information purposes only. To the extent that any such information or recommendations constitute financial advice, they do not take into account any person s particular financial situation or goals. We recommend that recipients seek advice specific to their circumstances from their financial adviser. Dubai: UBS AG Dubai Branch is regulated by the DFSA. This material is intended for Professional Clients only. UBS specifically prohibits the redistribution or reproduction of this Information in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for actions of third parties in this respect. UBS The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. 8

9 Disclaimer Hang Seng China Enterprises Index The Hang Seng China Enterprises Index (the Index(es) ) is/are published and compiled by Hang Seng Indexes Company Limited pursuant to a licence from Hang Seng Data Services Limited. The mark(s) and name(s) Hang Seng China Enterprises Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng Data Services Limited have agreed to the use of, and reference to, the Index(es) by UBS AG in connection with UBS product/service to which this document relates (the Product ), BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OR USER OF THE PRODUCT OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF ANY OF THE INDEX(ES) AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO ANY OF THE INDEX(ES) IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of any of the Index(es) and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by Hang Seng Indexes Company Limited without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO ANY OF THE INDEX(ES) BY UBS AG IN CONNECTION WITH THE PRODUCT; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF ANY OF THE INDEX(ES); OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF ANY OF THE INDEX(ES) WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OR USER OF THE PRODUCT OR ANY OTHER PERSON DEALING WITH OR USING THE PRODUCT AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED in connection with the Product in any manner whatsoever by any broker, holder, user or other person dealing with or using the Product. Any broker, holder, user or other person dealing with or using the Product does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited and Hang Seng Data Services Limited. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder, user or other person and Hang Seng Indexes Company Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship. Shanghai SE Indices This product is not in any way endorsed, sold, sponsored or promoted by the Shanghai Stock Exchange or China Securities Index Co., Ltd.. The Shanghai Stock Exchange and China Securities Index Co., Ltd. make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the [SSE 50 Index] (the [SSE 50] ), and/or the figure at which the said index stands at any particular time on any particular day or otherwise. The [SSE 50] is calculated by China Securities Index Co., Ltd., and on behalf of Shanghai Stock Exchange which will adopt all necessary measures to ensure the accuracy of the [SSE 50]. However, the Shanghai Stock Exchange and China Securities Index Co., Ltd. shall not be liable (whether in negligence or otherwise) to any person for any error in the [SSE 50] and shall not be under any obligation to advise any person of any error therein. The [SSE 50] is owned by the Shanghai Stock Exchange FTSE The securities is/are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ), the London Stock Exchange Plc (the Exchange ) or The Financial Times Limited ( FT ) (together the Licensor Parties ) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE MIB INDEX (the Index ) (upon which the note is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the fitness or suitability of the Index for the particular purpose to which it is being put in connection with the securities. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to UBS AG or to its customers or clients. The Index is calculated by FTSE or its agent. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. All rights in the Index vest in FTSE. FTSE is a trade mark of the Exchange and the FT and is used by FTSE under licence. 9