17.05.2009 /Operations
 Evrofinance Mosnarbank Made an Agreement with Industrial and Commercial Bank of China
On 28 October 2008, Evrofinance Mosnarbank and Industrial and Commercial Bank of China Limited (ICBC) signed in Moscow a Business Development and Cooperation Agreement in Relation to Hong Kong Depository Receipt or Initial Public Offering.
The signing ceremony took place at the President Hotel, Moscow, and was attended by Russian Deputy Prime Minister Alexander D. Zhukov and his Chinese counterpart Wang Qishan. To emphasize particular importance of the parties’ business co-operation for the two counties, the parties timed the event to coincide with an official visit to Russia by China’s Premier Wen Jiabao.
The agreement signed on Tuesday figuratively speaking opens a window to Hong Kong for Russian companies providing access to the local as well as to other Asian financial markets at the time of the world financial crisis. It became a proper step made at proper time which opens fresh opportunities so needed in the current situation.
Russia and the People’s Republic of China are strategic partners both politically and economically. Economic strategic partnership is hardly possible without close business cooperation between Russian and Chinese banks. This thesis has been articulated more than once by Viktor N. Melnikov, Deputy Chairman of the Bank of Russia, who co-chairs the Sino-Russian interbank cooperation subcommittee.
Evrofinance Mosnarbank and ICBC - backed by the Bank of Russia and the People’s Bank of China - have agreed to effect jointly operations in the Asian capital markets and adhere to the principles of business cooperation, mutual benefit and equality of the parties.
As a result of the current world financial crisis Western and Asian investors flew away from traditional investment floors and now are looking for fresh investment floors and investment opportunities.
The Hong Kong financial market is a real choice for those who are eager to diversify their investments by region, to raise funds and thus is of great interest both for Russian and Chinese financial institutions.
Hong Kong is one of the leading financial centers in Asia and according to The City of London Corporation is the third largest in the world. In 2007 the amount of IPOs placed in the Hong Kong stock exchange was equal to USD 37 bn (the fourth largest among the world stock exchanges) while the amount of secondary offerings reached USD 33 bn (head-to-head with the London Stock Exchange and the second largest globally). Ranked by capitalization the Hong Kong stock exchange is the seventh largest in the world (as of February 2008 its capitalization amounted to USD 2 trillion).
Evrofinance Mosnarbank and ICBC offer the following services in the Hong Kong financial market:
placement of shares issued by Russian companies and of the relevant depository receipts in the Hong Kong stock exchange; fund raising in the form of direct investments from Asia into the capital of Russian companies; fund raising in the form of debt financing from Asian markets; render other financial services to Russian and Chinese customers by using other financial instruments.
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