INVESTMENT INVESTMENT BANKING FIRMSBANKING FIRMS

THE IPO OF CCBTHE IPO OF CCB

CCB-Share Information CCB-Share Information China Construction China Construction

Bank Corporation’s Bank Corporation’s ordinary shares are ordinary shares are listed and traded on listed and traded on the Hong Kong Stock the Hong Kong Stock Exchange. Exchange.

Stock Code Stock Code 939939

Ordinary Shares Ordinary Shares Hong Kong Hong Kong Stock Exchange Stock Exchange Main Board Main Board

Share Class Share Class HH

Number of Shares Number of Shares Issued Issued

224,689,084,000 224,689,084,000

Nominal valueNominal value RMB 1.0000RMB 1.0000

Board Lot Board Lot 1000 1000

Index Constituent Index Constituent MSCI & FTSE MSCI & FTSE

Financial Highlights (%)Financial Highlights (%)20042004 20052005

Profitability indicatorsProfitability indicators

Return on average assets Return on average assets (ROAA) (ROAA)

1.331.33 1.391.39

Return on average equity Return on average equity (ROAE) (ROAE)

24.424.4 28.628.6

Net interest margin Net interest margin 2.822.82 2.852.85

Non-interest income to Non-interest income to operating income operating income

7.687.68 9.889.88

Capital adequacy Capital adequacy indicatorsindicators

Capital adequacy ratio Capital adequacy ratio 8.178.17 10.7110.71

Total equity to total assets Total equity to total assets 5.65.6 4.764.76

Awards Awards

20052005""Bank of the YearBank of the Year'' in China named '' in China named by by The Banker The Banker magazine.magazine.

Investment Bank of China Investment Bank of China Construction Bank Construction Bank

SLOGANSLOGAN

The ultimate measure of your firm’sThe ultimate measure of your firm’s

success is how well it performs for people:success is how well it performs for people:

building value for all our shareholders,building value for all our shareholders,

improving each client’s performance andimproving each client’s performance and

offering personal and professional growthoffering personal and professional growth

for every employeefor every employee

MORGAN STANLEYMORGAN STANLEY

Global equity underwriting since 1982Global equity underwriting since 1982 Mergers and acquisitions Mergers and acquisitions Global debt underwriting Global debt underwriting

One of the world's largest diversified One of the world's largest diversified financial services companies financial services companies

With a reputation for excellence in advice With a reputation for excellence in advice and execution on a global scaleand execution on a global scale

MORGAN STANLEYMORGAN STANLEY

Three attractive businesses: Three attractive businesses: Global Securities Global Securities

Global Asset Management Global Asset Management

Global Credit Card Services Global Credit Card Services

MORGAN STANLEYMORGAN STANLEY

MORGAN STANLEYMORGAN STANLEY

MORGAN STANLEYMORGAN STANLEY

MORGAN STANLEYMORGAN STANLEY

Listing Methods Listing Methods

Offer for SubscriptionOffer for Subscription An offer to the public by, or on behalf of, an issuer of its own securitiAn offer to the public by, or on behalf of, an issuer of its own securities for subscription. es for subscription.

Offer for SaleOffer for SaleAn offer to the public by, or on behalf of, the holders or allottees of sAn offer to the public by, or on behalf of, the holders or allottees of securities already in issue or agreed to be subscribed. ecurities already in issue or agreed to be subscribed.

PlacingPlacingThe obtaining of subscriptions for, or the sale of securities by, an issThe obtaining of subscriptions for, or the sale of securities by, an issuer or intermediary primarily from or to persons selected or approveuer or intermediary primarily from or to persons selected or approved by the issuer or the intermediary. d by the issuer or the intermediary.

IntroductionIntroductionAn application for listing of securities already in issue whAn application for listing of securities already in issue where no marketing arrangements are required. ere no marketing arrangements are required.

Largest 10 H Share Companies (Main Largest 10 H Share Companies (Main Board)Board)

Listing Date Stock Code Company Market capitalisation (HK$) Listing Date Stock Code Company Market capitalisation (HK$) 1.1. 2005/10/27 00939 China Construction Bank Corporation 572,957,164,2002005/10/27 00939 China Construction Bank Corporation 572,957,164,2002.2. 2000/04/07 00857 PetroChina Co Ltd 127,648,345,0002000/04/07 00857 PetroChina Co Ltd 127,648,345,0003.3. 2005/06/23 03328 Bank of Communications Co, Ltd 76,689,356,5522005/06/23 03328 Bank of Communications Co, Ltd 76,689,356,5524.4. 2000/10/19 00386 China Petroleum & Chemical Corporation 58,312,195,8002000/10/19 00386 China Petroleum & Chemical Corporation 58,312,195,8005.5. 2003/12/18 02628 China Life Insurance Co Ltd 45,391,167,5002003/12/18 02628 China Life Insurance Co Ltd 45,391,167,5006.6. 2002/11/15 00728 China Telecom Corporation Ltd 37,122,071,7502002/11/15 00728 China Telecom Corporation Ltd 37,122,071,7507.7. 2004/06/24 02318 Ping An Insurance (Group) Co of China Ltd 33,646,164,6292004/06/24 02318 Ping An Insurance (Group) Co of China Ltd 33,646,164,6298.8. 2005/06/15 01088 China Shenhua Energy Co Ltd 29,397,738,625 2005/06/15 01088 China Shenhua Energy Co Ltd 29,397,738,625 9.9. 2001/12/12 02600 Aluminum Corporation of China Ltd 18,479,249,4212001/12/12 02600 Aluminum Corporation of China Ltd 18,479,249,42110.10. 1998/01/21 00902 Huaneng Power International, Inc 16,193,314,7201998/01/21 00902 Huaneng Power International, Inc 16,193,314,720

Data & StatisticsData & Statistics

List of H Share Companies (Main Board)List of H Share Companies (Main Board)

Updated: 30 November 2005Updated: 30 November 2005

Total number  78Total number  78 Total 1,204,273,690,067Total 1,204,273,690,067

Initial Listing Fees Initial Listing Fees Main BoardMain Board

Monetary Value of Equity Securities to be Listed (HK$ million) Initial Listing Fee (HK$)Monetary Value of Equity Securities to be Listed (HK$ million) Initial Listing Fee (HK$) Not exceedingNot exceeding: 100  150,000 : 100  150,000    200  175,000 200  175,000  300                         200,000 300                         200,000  400                         225,000 400                         225,000  500                         250,000500                         250,000    750                         300,000750                         300,000    1,000                      350,000 1,000                      350,000  1,500                      400,000 1,500                      400,000  2,000                      450,000 2,000                      450,000  2,500                      500,000 2,500                      500,000  3,000                      550,000 3,000                      550,000  4,000                      600,000 4,000                      600,000  5,000                     600,0005,000                     600,000 Over5,000  650,000Over5,000  650,000

Assist Company Structureand share Rearrangement

since2003

Application for advance booking to the Exchange(6/2005)

Documentary submissions

Formal application for listing(9/2005)

Discretionary appeal to Listing Committee

Issue of prospectus & formal notice(14/10)

set price process and share distribution( before 26/10)

Dealings in shares commences (27/10)

Recommendation/ rejection by Listing Division

Hearing by Listing Committee (9/2005)

Listing Flowchart

Parties Involved in a New Parties Involved in a New Listing Listing

1. Sponsors1. Sponsors 2. Reporting Accountants2. Reporting Accountants 3. Legal Advisers3. Legal Advisers 4. Underwriters/Placing Agents4. Underwriters/Placing Agents 5. Valuers5. Valuers

UnderwritingUnderwriting

PricingPricing

Investment purchase the entire issue at a Investment purchase the entire issue at a predetermined price and then resell it in predetermined price and then resell it in the marketthe market

Undersubscribed – Undersubscribed – unable to generate unable to generate sufficient interestsufficient interest

Oversubscribed – lost Oversubscribed – lost future businessfuture business

On 27th September, 2005 -- Each shares On 27th September, 2005 -- Each shares cost cost 1.42 to 2.271.42 to 2.27 dollars. dollars.

On 5thOctober, 2005 -- raises the shares On 5thOctober, 2005 -- raises the shares price to price to 1.9 - 2.41.9 - 2.4. .

At the end, the share price was set on At the end, the share price was set on 2.352.35 per share per share

建行今招股 盼人人有份 入場費建行今招股 盼人人有份 入場費 24242424 元 集資最多元 集資最多 731731 億億1010 月 月 1414 日 星期五 日 星期五 05:05 05:05 更新更新【明報專訊】今天起正式公開招股、集資最多【明報專訊】今天起正式公開招股、集資最多 731731 億的重億的重磅新股中國建設銀行（磅新股中國建設銀行（ 09390939 ），由於市場反應熱烈，），由於市場反應熱烈，招招股價範圍由原先的股價範圍由原先的 1.81.8 元至元至 2.252.25 元，調高至元，調高至 1.91.9 元至元至 2.42.4元，每手股數由元，每手股數由 20002000 股下調至股下調至 10001000 股，一手入場費只股，一手入場費只需需 24242424 元元（詳見表）。知情人士透露，建行是次招股，（詳見表）。知情人士透露，建行是次招股，將每手股數定在將每手股數定在 10001000 股，是希望能盡量滿足散戶需求，股，是希望能盡量滿足散戶需求，做到「一人一手」。做到「一人一手」。

建設銀行（０９３９）首日登場平開造２﹒３５元，建設銀行（０９３９）首日登場平開造２﹒３５元，交投熱烈交投熱烈1010 月 月 2727 日 星期四 日 星期四 09:56 09:56 更新更新

《經濟通專訊》內地四大國有銀行之一建設銀行《經濟通專訊》內地四大國有銀行之一建設銀行（０９３９）今日（２７日）首日於主板掛牌，股價（０９３９）今日（２７日）首日於主板掛牌，股價與其上市價２﹒３５元平開，新報２﹒３５元，交投與其上市價２﹒３５元平開，新報２﹒３５元，交投非常熱烈，尤勝匯控（０００５），暫成交５﹒８４非常熱烈，尤勝匯控（０００５），暫成交５﹒８４億股，成交１３﹒８億元。億股，成交１３﹒８億元。

該股曾提高招股價，並以接近上限訂價，並獲達約該股曾提高招股價，並以接近上限訂價，並獲達約２７萬散戶認購，２７萬散戶認購，公開發售部分錄得４２倍超額認購，公開發售部分錄得４２倍超額認購，國際認購倍數亦超過１０倍。國際認購倍數亦超過１０倍。（ｋｌ）（ｋｌ）

RatingRating

Moody raises the BFSR rating from E+ to Moody raises the BFSR rating from E+ to D- D-

FitchRating improve China Construction BFitchRating improve China Construction Bank’s rating from D/E to D ank’s rating from D/E to D

RatingRating

BEIJING (AFX) - Morgan Stanley will recBEIJING (AFX) - Morgan Stanley will receive an estimated 80 mln usd for advising eive an estimated 80 mln usd for advising China Construction Bank (CCB) on its eigChina Construction Bank (CCB) on its eight bln usd Hong Kong listing, the Financiht bln usd Hong Kong listing, the Financial Times reported in its online edition. al Times reported in its online edition.

CCB CCB (0939.HK)(0939.HK) BOCOM BOCOM (3328.HK)(3328.HK)

Market valueMarket value $567.3 billion$567.3 billion $150.0 billion$150.0 billion

Total AssetTotal Asset $4.2 trillion$4.2 trillion $1.3 trillion$1.3 trillion

Total DepositTotal Deposit $4.3 trillion$4.3 trillion $1.2 trillion$1.2 trillion

Number of branchesNumber of branches 14,45814,458 2,5922,592

Non-performing loan Non-performing loan ratioratio

3.90%3.90% 2.45%2.45%

Strategy InvestorStrategy Investor Bank of Bank of AmericanAmerican

Hong Kong & Hong Kong & Shanghai BankShanghai Bank

CCBCCB BOCOMBOCOM

Issue PriceIssue Price $2.35$2.35 $2.50$2.50

Market PriceMarket Price $2.50$2.50 $3.35$3.35

% change% change + 6.38%+ 6.38% + 34%+ 34%

RiskRisk

(1)(1) Over-dependence on interest incomeOver-dependence on interest income

(2)(2) Return of Non-performing loan ratio Return of Non-performing loan ratio

5 category classification 5 category classification of non-performing loanof non-performing loan

(1)(1) PassPass

(2)(2) Special-mention – Special-mention – 1%1%

(3)(3) Substandard – Substandard – 25%25%

(4)(4) Doubtful – Doubtful – 50%50%

(5)(5) Loss – Loss – 100%100%

MCMC

1. What is the listing method of CCB?1. What is the listing method of CCB?

A.A. Offer for SaleOffer for Sale

B.B. Offer for SubscriptionOffer for Subscription

C.C. Placing Placing

D.D. IntroductionIntroduction

MCMC2. What is the attractive businesses of 2. What is the attractive businesses of

MORGAN STANLEY?MORGAN STANLEY?(I) Global Securities (I) Global Securities

(II) Global Asset Management (II) Global Asset Management

(III)Global Credit Card Services (III)Global Credit Card Services

A.A. I & II I & II

B.B. I,II,III I,II,III

C.C. I ONLY I ONLY

D.D. NONE OF THE ABOVE NONE OF THE ABOVE

MCMC

3. Which categories cannot be classified 3. Which categories cannot be classified as non-performing loan?as non-performing loan?

A.A. LossLoss

B.B. SubstandardSubstandard

C.C. DoubtfulDoubtful

D.D. Special-mentionSpecial-mention

E.E. None of the aboveNone of the above