Wealth management has become the long-term logic of securities companies: the gradual flow of residents’ assets from housing to financial assets has become an inevitable trend in the future. At the same time, the expansion of risk asset allocation will become an important direction of residents’ asset allocation in the future. As an intermediary in the capital market, securities companies mainly undertake three functions: service intermediary, capital intermediary and transaction intermediary from the perspective of business structure. In the income structure dominated by service intermediary (including brokerage, asset management and investment banking), the income from agent sales of financial products in brokerage business The collective asset management and public fund businesses in the asset management business directly benefit from the transfer of residents’ long-term asset allocation and continue to support the long-term growth of performance contribution.
The commission sales revenue of securities companies continues to increase significantly, which is expected to become the transformation point of brokerage business income. In the context of the limited development of traditional brokerage business, as an important part of wealth management, the proportion of consignment income in brokerage business has increased from 2.2% in 2015 to more than 10% in 2020, and the income has doubled continuously. Securities companies such as CITIC and CICC have accounted for more than 20%. Typical companies:
1) Citic Securities Company Limited(600030) adjust the organizational structure, pay attention to customer classification, strengthen the accurate identification of differentiated needs and service matching, especially provide comprehensive products and “1 + 1 + n” service system for wealth and high-end customers;
2) China International Capital Corporation Limited(601995) create one-stop domestic and foreign product selection and asset allocation services;
3) China Industrial Securities Co.Ltd(601377) taking the wealth management brand of “Xingzheng heart selection” as the core, following the selection criteria of three good and three modernizations, launching four product systems, and covering the whole process of investment.
On the whole, diversified products, strict selection by layers, customer customization and comprehensive services are the core measures of securities companies in consignment. However, from the comparison of different channels, the advantages of banks in volume and the rapid growth of the scale of third-party institutions also bring some challenges to the consignment business of securities companies, Compared with third-party institutions, securities companies have higher customer quality and risk tolerance, and have more obvious advantages in investment and research than banks. Therefore, they also need to establish their own comparative advantages and improve customer experience.
Fund investment adviser: the development of industry entities has its own characteristics and has a broad space in the future. Since 2019, the pilot work of fund investment advisory business has been promoted rapidly. By the end of 2021, 60 institutions have obtained the pilot qualification of fund investment advisory business. Under this mode, account ownership and trading rights are separated, which is a buyer’s investment consulting mode that is truly customer-centered and represents the interests of investors. The development of different institutional entities also has different characteristics. On the whole, different strategies are mainly formulated in four main aspects: investment objectives, asset categories, investment markets and investment scenarios. From the perspective of different entity companies:
1) the overall layout of the fund and its subsidiaries is more advanced, the strategy is relatively perfect, and actively expand cooperation with third parties. Some companies also launch scene customization strategies;
2) the third-party platform has contracted customers and leading scale under the advantages of shareholders and traffic, and its development has its own characteristics;
3) the investment advisory team of securities companies has significant advantages in scale, and the number of pilot institutions and business volume are also expanding rapidly. Although the rate does not have significant advantages and most of them serve their own customers through their own apps, securities companies such as Guolian actively strengthen cooperation with third-party platforms and small and medium-sized banks to achieve overtaking in corners.
The fund investment advisory business can effectively solve the core pain point problem of “funds make money, but people don’t make money” caused by professionalism and trading habits for a long time, and has the advantages of higher professionalism and richer resources, unified interest classification mechanism, personalized customization of thousands of people and thousands of aspects, and more comprehensive investment services. In the long run, as a buyer intermediary, Guide investors to make long-term and rational investments, and promote mutual promotion among investors, fund managers and capital markets to achieve a win-win situation.
Investment suggestion: in the general direction of asset allocation transfer of long-term residents, the brokerage business ushers in new development opportunities to promote the optimization and improvement of profit structure. At the level of individual stocks, we continue to pay attention to two main dimensions. One is the head securities companies with core advantages in wealth management business lines, including consignment and investment consulting, including Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) h, and the other is the leading Gf Securities Co.Ltd(000776) , China Industrial Securities Co.Ltd(601377) and Orient Securities Company Limited(600958) in the layout of public offering business.
Risk warning: the fund issuance data continues to be lower than expected; Downside risk of equity market; The policy is less than the expected risk; Liquidity tightening risk.
