Through rapid organic growth and strategic investments, Deutsche Bank in China and Hong Kong now has business interests in corporate advisory and capital markets, transaction banking, private and retail banking, as well as asset management. In addition, the Bank has a well established sales, trading and research platform, which covers macro economics, fixed income, credit, foreign exchange, equities and derivatives thereof.

In China, Deutsche Bank started local trading operations in late 2004 and is widely recognised as a leading market participant. It has worked closely with regulators in introducing new financial market instruments, and has been an innovator in such areas as local currency swaps, structured deposits, and introduction of wealth management products.

In recognition of Deutsche Bank's market position, the Bank was appointed as an original SHIBOR settling bank, one of only three foreign banks in this group. 

Deutsche Bank is the only international investment bank that has acted as lead underwriters for four out of the six largest overseas equity financings (all above US$2.7 billion) carried out by Chinese companies. It was a bookrunner for Industrial and Commercial Bank of China's US$22.0 billion IPO, the largest IPO globally. The Bank was also the sell-side advisor for Guangdong Development Bank's US$3.1bn strategic stake sale - the only Chinese bank to sell a controlling stake to an investor consortium led by foreign investors. In addition, Deutsche was the sole financial advisor of PetroChina's US$2.7bn acquisition of a 67 percent interest in PetroKazakhstan from CNPC.

Deutsche Bank has assisted international companies to achieve unprecedented cross-broader M&A transactions in China. These included Temasek / Bank of China, Deutsche Bank / Huaxia Bank and TNK-BP's disposal of US$3.5bn assets to Sinopec.

As one of the leading investment banks in China, Deutsche has completed significant transactions in all major industries including oil & gas, financial institutions, real estate, consumer, chemicals and power. Deutsche Bank has played a key role in significant public capital market deals involving leading local companies such as PetroChina, ICBC, Haier Group, China Shenhua Energy and China Life - to name but a few.

Deutsche Bank also has a retail presence in China. In May 2006 the Bank acquired a 9.9 percent stake in Hua Xia Bank - a nationwide bank listed on the Shanghai Stock Exchange - and launched joint credit card operations in June 2007. It also opened Deutsche Bank sub-branches in Beijing and Shanghai in the first half of 2007.

In 2005 the Bank made a 19.5 percent strategic investment in local asset management firm Harvest Funds Management - one of the country's leading investment managers. In November 2006, the Private Wealth Management business started to provide onshore financial advisory services to high net-worth individuals in Shanghai. And in August 2007 the Bank was given a US$300 million qualified domestic institutional investor quota, allowing it to offer certain international investment products to local clients.

Deutsche Bank has applied for local incorporation in China. Local incorporation will allow the Bank to offer local currency products and services, and in the long run, the Bank's capacity to offer products across a number of business lines will be further enhanced by undergoing local incorporation

In summary, Deutsche Bank has strength and depth across all disciplines and sectors in which the Bank is licensed to operate in China.

Recent investment banking highlights for Deutsche Bank include:

• August 2007 - US$424 million IPO for Franshion Properties (China) Limited, which is the largest IPO from a pure commercial real estate developer in China

• July 2007 -US$347 million IPO for New World Department Store, which owns and operates 28 department stores in Mainland China and Hong Kong

• May 2007 - RMB2.5 billion (US$325 million) RMB-denominated convertible bond for property developer, New World China Land Limited

• April 2007 - US$500 million exchangeable bond for China Overseas Holdings Limited

• April 2007 - US$120 million-equivalent RMB-denominated convertible bond for ReneSola Ltd, a renewable energy firm, representing the first ever Asian convertible bond issued by an AIM-listed Chinese company