Securities and financial products and transactions. The Company considers that it is impracticable and extremely difficult to set a separate cap for each category of the securities and financial products and transactions for the following main reasons: (i) the securities and financial products and transactions are frequently conducted at the prevailing market prices in the ordinary and usual course of business of the Group. Such transactions are market-driven and are entered into depending on various factors including the bidding price and timing; (ii) most of these transactions are conducted within a very short timeframe and are very sensitive to market prices; (iii) as the variety and characteristics of products are experiencing rapid innovations in the ever-changing securities and financial market, it is difficult to precisely estimate when new products will be launched, however, once new securities and financial products and transactions are launched, it is expected that the total inflow and the total outflow of securities and financial products and transactions between China Merchants Group and/or its associates and the Group will increase; (iv) all such transactions will continue to be entered into at the prevailing market prices in the ordinary and usual course of business of the Group; and (v) if an annual cap is set for each category of these transactions, it would cause significant delay to such transactions and harm to the Group’s existing operations and potential growth to the detriment of the Company and the Shareholders as a whole and restrict the Company’s overall competitiveness in a highly competitive securities industry. In light of the above, the Company considers that it is more practicable to set a cap for the total inflow and the total outflow of all the securities and financial products and transactions under the 2022 CMG Framework Agreement, instead of a separate cap for each category of those products and transactions. The Proposed CMG Annual Caps of expected total inflow(1) amount and total outflow(2) amount of the securities and financial products and transactions between the Group and China Merchants Group and/or its associates under the 2022 CMG Framework Agreement for each of the three years ending December 31, 2024 are as follows: Inflow(1) 7,000 7,500 7,500 Outflow(2) Notes: 11,150 11,660 11,670
Securities and financial products and transactions. The securities and financial products are conducted through the PRC inter-bank bond market and the PRC exchange bond market, exchanges (including stock exchanges, futures exchanges, Shanghai Gold Exchange and China Foreign Exchange Trade System) and other OTC markets. The transaction prices and related fees for each type of the securities and financial products and transactions shall be determined by the prevailing market price or the market price normally applicable to independent third parties for similar types of products and transactions as referred in the 2022 COSCO Framework Agreement at the time of the transaction. The pricings of such transactions are also subject to strict PRC regulatory supervision and requirements of the applicable PRC laws and regulations. The fixed income products and transactions conducted in the PRC are mainly conducted through inter-bank bond markets and securities markets (through centralised bidding transaction mechanism, block trade platform and fixed income platform). Except for centralised bidding transactions conducted at securities markets, pricing of transactions conducted at inter-bank bond markets, block trade platform and fixed income platform of securities markets is determined mainly with reference to the bond valuation published by China Central Depository & Clearing Co., Ltd. (the “CCDC”) and China Securities Depository and Clearing Corporation Limited (the “CSDC”). The price quotations of the transactions conducted at inter-bank bond markets shall be within 2% of the valuation published by the CCDC. Otherwise, such transactions must be reported to CCDC. Abnormal pricing, if without reasonable reason(s), may result in warning or penalty by the regulatory institution(s). For fixed income products and transactions conducted at securities markets, prices of centralised bidding transactions are prevailing market prices and non-centralised bidding transactions are determined mainly with reference to the bond valuation published by the CSDC. In terms of subscriptions by the Group of the fixed-income financial instruments offered by COSCO Shipping and/or its associates, or subscription by COSCO Shipping and/or its associates of such financial instruments offered by the Group, the subscription price is determined by the issuers of such financial instruments with reference to the valuation published by CCDC of financial instruments of similar credit quality with a similar term, and is the same subscription price as th...
Securities and financial products and transactions. The approximate historical figures of securities and financial products and transactions between the Group and COSCO Shipping and/or its associates for the three years ending December 31, 2021 were as follows: Inflow(1) 0.00 0.00 156.80 Outflow(2) Notes: 650.00 241.00 319.75
Securities and financial products and transactions. The approximate historical figures of securities and financial products and transactions between the Group and China Merchants Group and/or its associates for the three years ending December 31, 2021 were as follows: Historical figures(3) (RMB million) Inflow(1) 1,753.52 6,752.11 1,793.08 Outflow(2) Notes: 1,302.80 7,258.64 1,174.12
Securities and financial products and transactions. According to the Framework Agreement, the securities and financial products and transactions between the Group and JIC and/or its associates include (but are not limited to) the followings (collectively the “Securities and Financial Products and Transactions): • equity-related products or transactions, including funds, trust, bonds, asset management schemes, convertible bonds, structured products, etc.; • fixed-income products, including funds, trust, bonds, and structured products with fixed income characteristics, etc.; • financing transactions among financial institutions with or without securities; and • other related securities and financial products and derivative products.
Securities and financial products and transactions. According to the New Framework Agreement, the securities and financial products and transactions between the Group and JIC and/or its associates include (but are not limited to) the followings (collectively the “Securities and Financial Products and Transactions”): • equity-related products, including but not limited to, equity interest, funds, trust, asset management schemes, exchangeable bonds, convertible bonds and structured products; • fixed-income products, including but not limited to, funds, trust, bonds, debt, and structured products with fixed income characteristics; • hybrid products, including but not limited to, funds, trust, asset management schemes and structured products; • financing transactions among financial institutions with or without guarantees; and • other related securities and financial products and derivative products.
Securities and financial products and transactions. For the three years ending December 31, 2021, the annual caps of the Securities and Financial Products and Transactions are set out below: In (1)(3) Out (2)(3) For the two years ended December 31, 2020 and the nine months ended September 30, 2021, the historical transaction amounts of the Securities and Financial Products and Transactions are set out below: In (1)(3) Out (2)(3)
Securities and financial products and transactions. Pursuant to the Agreement, the securities and financial transactions between the Group and COSCO Shipping and/or its associates and the securities and financial products to be provided to each other include (but are not limited to):
(1) fixed income products or transaction – including bonds, funds with fixed income features, trust, wealth management products, asset management products, asset securitization products, convertible bonds, structured products, interest rates and credit risk derivative products and other fixed income products or transactions;
(2) equity products or transactions – including stocks, equity, equity funds, trust, wealth management products, asset management products and equity derivative products or transactions;
(3) financing transactions – capital financing between financial institutions with or without guarantees, including capital lending, repurchase, transfer of income right, asset securitization, pledged loans, reciprocal holding of debt certificates including but not limited to short-term financing bills, beneficiary certificates, subordinated bonds, corporate bonds, etc.; and
(4) other related securities and financial products and derivative products – including swaps, futures, forward contracts, commodities and foreign exchange.
Securities and financial products and transactions. (1) Original annual caps and historical transaction amounts For the year ended 31 December 2017, the year ended 31 December 2018 and the year ended 31 December 2019, the annual caps and historical transaction amounts of the Securities and Financial Products and Transactions are set out below: N/A 1,705,401 N/A 186,464 4,690,721 2,289,738 N/A 1,070,086 N/A 1,210,413 4,053,000 1,557,666 In(1) Out(2) For the year ending 31 December 2020 and the year ending 31 December 2021, the original annual caps and the proposed amended annual caps of the Securities and Financial Products and Transactions are set out below: In(1) 4,048,500 8,108,500 4,456,500 9,718,500 Out(2) 4,419,000 8,479,000 4,437,800 9,999,800 Notes:
Securities and financial products and transactions. The proposed annual caps of the Securities and Financial Products and Transactions for the three years ending December 31, 2024 are set out below: In (1)(3) Out (2)(3) In estimating the annual caps of the total inflow amount and total outflow amount of the Securities and Financial Products and Transactions of the Group, the Company has considered, among others, the following key factors:
(1) Historical data on the total cash inflows and total cash outflows of certain Securities and Financial Products and Transactions previously entered into by certain members of the Group with JIC and its associates for the two years ended December 31, 2020 and the nine months ended September 30, 2021, including the subscription for or redemption of funds, trust products and asset management products, securities trading, etc. by certain members of the Group with associates of JIC, with inflows and outflows of approximately RMB2,200 million and RMB1,500 million for 2019, approximately RMB1,200 million and RMB900 million for 2020, and approximately RMB1,000 million and RMB900 million for the nine months ended September 30, 2021, respectively. Historically, the fluctuation of such transactions was relatively high, and once they occurred, the transaction amount was significant. Based on the preliminary transaction intention reached or solicited by the Company with JIC and its associates, the intended subscription amount of the Group is approximately RMB1,000 million. Considering the Group’s high demand for liquidity management, the scale of cash management may reach the level of RMB10,000 million, and the Group needs to seek some monetary funds with liquidity management function from the market as investment targets. According to the public data of Wind Information, so far, the total size of the monetary funds managed by the associates of JIC has been approximately RMB230,000 million, among which the total size of each of 3 monetary funds has exceeded RMB10,000 million, and thus the relevant monetary fund products meet the investment criteria on liquidity management. The Group’s Exchange-traded Fund (“ETF”) market-making business continues to grow, with the size of domestic non-monetary ETFs growing at a compound grown rate of 26.58% from 2013 to October 30, 2021, and the size of ETFs managed by the associates of JIC increased at a compound grown rate of 60.49% over the same period. Based on a cap of RMB1,440 million in 2021 and a 30% annual increase over the previous year fro...
