COVID-19 brought huge impacts to the society. CITIC Securities actively takes on the responsibilities as a large securities company to ensure the stable advancement of pandemic prevention and control and security services at the same time. We made active contributions to the pandemic prevention and control and the economic development while providing stable customer services and safeguarding employees’ health and safety.
Implementing pandemic prevention and control requirements

The Party Committee of CITIC Securities has made quick deployments for pandemic prevention and control, guided by the rules of “staying confident, working together, adopting scientific measures for pandemic prevention and control, and implementing targeted measures properly”. CITIC Securities established a COVID-19 Response Team with members from relevant departments such as General Administration, Wealth Committee, IT, HR, Compliance, General Manager Office and Board of Directors Office, and developed business continuity planning and Emergency Plan. Party organizations, departments, business line and subsidiaries & branches at all levels have been performing duties proactively and diligently in accordance with the Company’s general requirements, so as to guarantee the regular operation of businesses and the safe running of IT systems.

The Party Committee of CITIC Securities released the Announcement on Allocating Party Membership Dues to Support Grassroot Party Organizations in COVID-19 Prevention and Control in a timely manner, and implemented accordingly to support party organizations in pandemic prevention and control. The Labor Union of CITIC Securities arranged for our Hubei branch to purchase protective supplies immediately, and allocated RMB 3,500,000 for subsidiaries and branches around the nation to procure protective supplies. Our branches across the country purchased all kinds of protective supplies themselves, sparing no efforts to provide employees’ health and safety.

Fighting on the front of pandemic prevention and control

CITIC Securities stood firmly at the front line of pandemic prevention and control. After the outbreak of COVID-19, CITIC Securities, together with CITIC Futures, China AMC and other subsidiaries, made immediate donations of RMB 20 million to Wuhan Charity Federation. We have also donated 1,000 goggles and 20,000 surgical masks to CITIC engineers working at the front line of the fight against COVID-19, 1,500 protective suits to Jiangxi Red Cross, 20,000 masks to Xinghe County of Inner Mongolia, and 180,000 disposable protective masks to Jishishan County Education Bureau of Gansu Province. Affiliates of the Company also actively participated in the actions against COVID-19. For example, Goldstone Investment’s employees donated a total of more than RMB 40,000 to Red Cross, Charity Federation, public welfare institutions and other organizations, as well as over 1,000 protective suits to relevant hospitals in Wuhan. China AMC donated RMB 1,860,000 and RMB 120,000 to Peking Union Medical College Hospital and Beijing Tongren Hospital respectively as consolations for doctors and nurses fighting against COVID-19.

Ensuring provision of financial services

CITIC Securities has taken active measures to guarantee regular provision of financial services and protection of investors’ rights and interests. CITIC Securities System Operation Team made emergency plans for dozens of business links such as entrusted appointment, quick cash withdrawal, scheduled transfer, contract repayment, in-transit businesses, account modification and calculation of default interest, and tested these plans individually in a testing system, to ensure the normal operation of systems. The Customer Service Contact Centre (Hangzhou) coordinated closely with the local government for the resumption of work and guaranteed the normal provision of off-site services. Some employees worked during the pandemic to ensure timely off-site services after the market opens.

CITIC Securities properly planned business hours of sales department, encouraged customers to make transactions online, and informed investors in time of relevant transaction plans through diversified channels such as the Company’s official website, SMS platform, App notifications and customer manager phone-calls, so as to protect investors’ rights and interests and their health and safety. In response to the delay of A share market opening, CITIC Securities made preparations in advance in the systems for certain businesses such as ordinary transactions, margin trading, stock options and monitoring of abnormal transactions. The company properly postponed business such as the entrusted appointment and securities margin trading contract expiration date and settlement, so as to protect investors’ legitimate rights and interests. In addition, we made full use of all available finance technologies to provide online investor educations and online investment consulting services, guide investors to conduct rational and objective analysis of COVID-19 impacts, and encourage investors to develop the concept of long-term and value investment and make investments in compliance with laws and regulations.

Assisting enterprises in financing for pandemic prevention and control

The outbreak of COVID-19 has brought huge impacts to almost all industries. Many entities have suffered in the supply chain and operational cash flow, and seen declines in profitability and cash flow shortage. The market’s concerns about the risk of credit defaults were rising, leading to large pressure on corporate bond financing. In active response to the deployments of the CPC Central Committee and the State Council, CITIC Securities supported the fight against COVID-19 by financial means. The Company has supported clients in anti-pandemic construction, production and material sourcing, demonstrating our sense of responsibility as a major player in the finance industry and conveying the positive message of working together to overcome difficulties. In 2020, CITIC Securities, as the lead underwriter, assisted 38 issuers in completing the issuance of 45 pandemic prevention and control bonds, raising a total of RMB 135.3 billion.

The pandemic prevention and control bonds principally underwritten by the Company covered areas such as construction of designated isolation and shelter hospitals in Hubei, provision of medical services and manufacturing of medical products and instruments in major affected areas across the country, procurement and transportation of pandemic prevention and control materials, people's livelihood security, financing services and resumption of work and production. The enterprises that the Company served covered all kinds of major enterprises for pandemic prevention and control such as state-owned enterprises, privately-owned enterprises, commercial banks, securities companies and finance charter companies in 14 provinces/municipalities/autonomous regions, such as Hubei and Beijing, and relevant overseas regions.

CITIC Securities, as the lead underwriter, has underwritten the bonds of a few major enterprises in the industries of material supply and logistics transportation, such as Wu Mart and Yunda Holding, raising a total of RMB 4.1 billion, to guarantee people’s livelihood security during the pandemic. Wu Mart, a major provider of pandemic prevention and control materials in Beijing, resolutely implemented the strategy to guarantee people's livelihood and security by maintaining supply at fair prices. CITIC Securities served as the lead underwriter to underwrite Wu Mart’s bond “20 Wu Mart 03” and sold credit default swap, helping Wu Mart raise RMB 300 million for pandemic prevention and control. Yunda Holding opened a special logistics and transportation channel during the pandemic to support the pandemic prevention and control in affected areas across the country, transported pandemic prevention supplies to affected regions many times for free, and voluntarily assumed the responsibilities of transporting construction materials to the Huoshenshan and Leishenshan hospitals in Wuhan. The bond “20 Yunda Holding MTN001” principally underwritten by the Company represented the first pandemic prevention and control bond in the logistics industry, which raised RMB 500 million of pandemic prevention and control funds for Yunda Holding.

In 2020, as the lead underwriter, CITIC Securities assisted 10 issuers to complete the issuance of 10 asset-backed securities ("ABS") for pandemic prevention and control, raising a total of RMB 11.93 billion. The funds raised were used for transportation and purchasing supplies for pandemic prevention and control, environmental protection and water services, infrastructure construction and other affected industries that are essential to the national economy and people's livelihoods. Innovative models such as supply chain ABS were adopted to ease the liquidity pressure of SMEs and tide them over the pandemic.

On 14 February 2020, "CITIC Securities-Linklogis-CCCC SHEC Supply Chain Finance Special Asset-backed Plan (Pandemic Prevention and Control) (Phase II)”, as the first anti-pandemic ABS in the market, was successfully booked and issued with a scale of RMB 230 million. The term was 1 year, and the senior coupon rate was as low as 2.80%. CCCC SHEC participated in the fight against the pandemic in Wuhan, and successively undertook the construction of multiple public health projects such as Wuhan Huada Pathogenic Biosafety Laboratory, Wuhan Sports Centre Shelter Hospital and Huoshenshan Hospital. Funds raised in this project were mainly used to assist enterprises participating in the construction of pandemic prevention and control projects such as hospitals in affected areas and scientific research laboratories, and to provide timely financial support to upstream supply chain SMEs to help them resume work in an orderly manner and ensure stable production and operation.

The “20 MCC 01” corporate bond principally underwritten by CITIC Securities was issued with a scale of RMB 2 billion. The funds raised were partly used for China First Metallurgical Group, a subsidiary of China Metallurgical Group Corporation based in Wuhan, to construct shelter hospitals in Wuhan and improve related facilities and equipment of hospitals.

The outbreak of COVID-19 has brought huge impacts to almost all industries. Many entities have suffered in the supply chain and operational cash flow, and seen declines in profitability and cash flow shortage. The market’s concerns about the risk of credit defaults were rising, leading to large pressure on corporate bond financing. In active response to the deployments of the CPC Central Committee and the State Council, CITIC Securities supported the fight against COVID-19 by financial means. The Company has supported clients in anti-pandemic construction, production and material sourcing, demonstrating our sense of responsibility as a major player in the finance industry and conveying the positive message of working together to overcome difficulties. In 2020, CITIC Securities, as the lead underwriter, assisted 38 issuers in completing the issuance of 45 pandemic prevention and control bonds, raising a total of RMB 135.3 billion.

The pandemic prevention and control bonds principally underwritten by the Company covered areas such as construction of designated isolation and shelter hospitals in Hubei, provision of medical services and manufacturing of medical products and instruments in major affected areas across the country, procurement and transportation of pandemic prevention and control materials, people's livelihood security, financing services and resumption of work and production. The enterprises that the Company served covered all kinds of major enterprises for pandemic prevention and control such as state-owned enterprises, privately-owned enterprises, commercial banks, securities companies and finance charter companies in 14 provinces/municipalities/autonomous regions, such as Hubei and Beijing, and relevant overseas regions.

CITIC Securities, as the lead underwriter, has underwritten the bonds of a few major enterprises in the industries of material supply and logistics transportation, such as Wu Mart and Yunda Holding, raising a total of RMB 4.1 billion, to guarantee people’s livelihood security during the pandemic. Wu Mart, a major provider of pandemic prevention and control materials in Beijing, resolutely implemented the strategy to guarantee people's livelihood and security by maintaining supply at fair prices. CITIC Securities served as the lead underwriter to underwrite Wu Mart’s bond “20 Wu Mart 03” and sold credit default swap, helping Wu Mart raise RMB 300 million for pandemic prevention and control. Yunda Holding opened a special logistics and transportation channel during the pandemic to support the pandemic prevention and control in affected areas across the country, transported pandemic prevention supplies to affected regions many times for free, and voluntarily assumed the responsibilities of transporting construction materials to the Huoshenshan and Leishenshan hospitals in Wuhan. The bond “20 Yunda Holding MTN001” principally underwritten by the Company represented the first pandemic prevention and control bond in the logistics industry, which raised RMB 500 million of pandemic prevention and control funds for Yunda Holding.

In 2020, as the lead underwriter, CITIC Securities assisted 10 issuers to complete the issuance of 10 asset-backed securities ("ABS") for pandemic prevention and control, raising a total of RMB 11.93 billion. The funds raised were used for transportation and purchasing supplies for pandemic prevention and control, environmental protection and water services, infrastructure construction and other affected industries that are essential to the national economy and people's livelihoods. Innovative models such as supply chain ABS were adopted to ease the liquidity pressure of SMEs and tide them over the pandemic.

On 14 February 2020, "CITIC Securities-Linklogis-CCCC SHEC Supply Chain Finance Special Asset-backed Plan (Pandemic Prevention and Control) (Phase II)”, as the first anti-pandemic ABS in the market, was successfully booked and issued with a scale of RMB 230 million. The term was 1 year, and the senior coupon rate was as low as 2.80%. CCCC SHEC participated in the fight against the pandemic in Wuhan, and successively undertook the construction of multiple public health projects such as Wuhan Huada Pathogenic Biosafety Laboratory, Wuhan Sports Centre Shelter Hospital and Huoshenshan Hospital. Funds raised in this project were mainly used to assist enterprises participating in the construction of pandemic prevention and control projects such as hospitals in affected areas and scientific research laboratories, and to provide timely financial support to upstream supply chain SMEs to help them resume work in an orderly manner and ensure stable production and operation.

The “20 MCC 01” corporate bond principally underwritten by CITIC Securities was issued with a scale of RMB 2 billion. The funds raised were partly used for China First Metallurgical Group, a subsidiary of China Metallurgical Group Corporation based in Wuhan, to construct shelter hospitals in Wuhan and improve related facilities and equipment of hospitals.