The Finance Club activities resumed post mid term examinations with second edition of FInXplorer Speaker series. This week we had Mr. Yee Chia Hsing, Director of CIMB- GK securities in Singapore, providing his insight on the world of Investment Banking and Corporate Finance to the Finance club members.
As mentioned in our previous post, Mr. Chia Hsing has worked in numerous equity transactions like IPOs, rights issues and placements. Mr. Chia Hsing initiated the discussion with the brief reflection on his professional experiences. He started his career with Development Bank of Singapore (DBS) in 1996. After 4 years in DBS, he moved to Vicker Ballas Co ltd before joining CIMB – GK securities in 2002.
Mr. Chia Hsing illustrated the operating model of CIMB – GK securities and the role it’s playing in regional South East Asian market especially in China. CIMB – GK securities has been aggressively involved in assisting mid and small size Chinese corporation in public listing and IPOs. They have assisted in restructuring several Chinese companies and has become top player in regional universal bank group.
In his operating model illustration, Mr. Chia Hsing gave an in-depth perspective of three critical divisions of an Investment Bank- Origination, Execution and Distribution. As Mr. Chia Hsing explained, Origination division of an I-Bank is typically involved with helping banks getting deals, assessing deals, filtering the deals under what kind of deal has to be picked and what not and most importantly networking with the clients. He particularly emphasized on the role of business contacts that plays in making or breaking a deal. He listed the importance of inter personal skills and awareness about the market as one of the critical skillsets in this division of I–Banks.
In Execution division of I-Bank, Mr. Chia Hsing stressed upon how the team is involved in IPOs and M & As. The team has to be highly competent in documentation, rules and regulations as per the industry standards. The team at Execution division works in coordination with other professionals in assessing the viability and options for a particular deal. To succeed in Execution division one needs to be high proficient in Technical skills.
The discussion then moved to the Distribution division of an I-Bank where the team adopts sales strategies like helping firms organize roadshows in coordination with institutional salesman. Distribution team at CIMB – GK securities assesses Eligibility to List (ETL) criteria for deals in Singapore Stock exchange and pitches the equities in capital market.
Mr. Chia Hsing concluded his discussion with comparative studies of Foreign Houses like CitiGroup, HSBC and Local Houses like DBS, OCBC and CIMB. He segregated the Local Houses structure into Banks, Stock Brokers and Boutique firms and elaborated on functional and business dynamics involved in working of each of these segments of Local Houses in Investment Banking industry.
Like its previous edition on Trading and Sales by Mr. William Shropshire, this talk on Investment Banking and Corporate Finance by Mr. Chia Hsing proved highly insightful to club members and took them to another journey of Financial World. The club members are eagerly waiting for the next talk on Private Banking by Mr. Keith Dastur on 23rd October 2007. Meanwhile the financial quotients triggered by Mr. Yee Chia Hsing talk flowed into Oktoberfest that evening where discussions on Investment Banking world brewed up over the glass of beer.
Posted by Adarsh Abhineet -MBA 2007 cohort
