A shares fluctuated violently
5 trillion stock pledge or become the sword of Damocles of securities companies?
Since January 2022, A-Shares have fallen continuously, and the gem index has the largest decline of nearly 18%. Black Swan events continue. Last year's hot track stocks, new energy and medicine, fell wildly, and some of the two financing businesses and stock pledge of securities companies repeatedly approached the closing line.
According to statistics, as of February 18, 2022, the number of A-share pledged shares was 577.923 billion, accounting for 5.5% of the total share capital, and the market pledge market value was 5140.498 billion yuan. The huge credit impairment of securities companies caused by the "explosion" of stock pledge business of more than 32 billion yuan in 2020 is still vivid. A new round of stock price slump has aroused investors' concerns about the huge credit impairment of securities companies.
hardest hit areas with equity pledge of new energy and pharmaceutical
According to statistics, calculated according to the average closing line of stock pledge (130%), as of February 18, the Pledged Shares of 901 listed companies were lower than the closing line. Among them, the new energy and pharmaceutical industries have become the "hardest hit areas" of stock pledge, with 74 and 54 listed companies on the list respectively, followed by real estate, and 36 listed companies whose pledged shares are lower than the closing line.
Specifically, in terms of new energy sector, new energy index, photovoltaic industry index, wind power sector and hydrogen energy sector have been falling all the way since the fourth quarter of 2021. Since December 2021, the new energy index has plunged by more than 20%. For Contemporary Amperex Technology Co.Limited(300750) , which has attracted much attention from the market, the cumulative decline in the five trading days after the Spring Festival holiday this year was about 17.3%, and the market value evaporated by more than 170 billion yuan. Fortunately, the share price of Contemporary Amperex Technology Co.Limited(300750) rebounded quickly and "escaped" the warning line.
The stock pledge risk of the pharmaceutical sector is more prominent. According to data, since this year, star stocks Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Changchun High And New Technology Industries (Group) Inc(000661) , Hangzhou Tigermed Consulting Co.Ltd(300347) and Autek China Inc(300595) have all fallen by more than 30%.
In late January of this year, Changchun High And New Technology Industries (Group) Inc(000661) share price fell for four consecutive times. It was rumored that Changchun High And New Technology Industries (Group) Inc(000661) two financial positions were broken and the stock pledge was close to the closing line. The company specifically responded to this. The company said that after confirming with the pledgor and the company's indirect controlling shareholder Longxiang Investment Holding Group Co., Ltd. and Changchun New Area Development Group Co., Ltd., the relevant shareholders will take supplementary guarantee measures such as supplementary property mortgage, supplementary guarantee and prepayment to ensure that the pledgee will not take the means of closing positions.
However, some listed companies were forced to close their positions because their shareholders could not supplement the pledge in time. On December 16, 2021, Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) announced that Jiang Yong, a shareholder holding more than 5% of the company, would solve the debt problem by auctioning 22997200 shares held by him through asset judicial auction due to the debt problem with Galaxy Securities, the creditor.
As of the closing on February 18, based on the shenwanyi industry as the reference basis, among the 31 industry categories, the sector with the most stock pledge transactions was pharmaceutical biology, with a total of 2176 pledges involving 244 listed companies, and the number of pledged shares involved was only second to the real estate industry, up to 34.25 billion shares.
which securities firm is most involved in stock pledge business?
In fact, after experiencing the rapid development and rapid progress in scale in the early stage, the equity pledge business of securities companies has ushered in a new stage of intensive introduction of policies and stricter business supervision. The stock pledge business of securities companies has entered a contraction period, and the "pressure drop scale" is the "main melody" of the stock pledge business of securities companies in recent years.
A person from a small and medium-sized securities company in the North said that at present, the risk control and compliance are relatively strict. The stock pledge business of most small and medium-sized securities companies is light, and the stock pledge is generally concentrated in large and medium-sized securities companies.
According to statistics, as of February 18, Citic Securities Company Limited(600030) ranked first in the latest market value of stock pledge, with a value of 169.6 billion yuan. Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) ranked second and third with 145.458 billion and 121.783 billion respectively.
Up to now, three securities companies have released the performance express of 2021. From the overall situation of data disclosure, the securities industry welcomes the "harvest year" again, and only a few securities companies' net profits have declined. Among them, Central China Securities Co.Ltd(601375) , Orient Securities Company Limited(600958) , Guoyuan Securities Company Limited(000728) , Everbright Securities Company Limited(601788) , The Pacific Securities Co.Ltd(601099) (Securities) and Sealand Securities Co.Ltd(000750) all disclose the provision for asset impairment in 2021. Among them, Central China Securities Co.Ltd(601375) , Orient Securities Company Limited(600958) , Guoyuan Securities Company Limited(000728) , Sealand Securities Co.Ltd(000750) are mainly dragged down by stock pledge repo business.
Faced with the risks brought by the equity pledge business, Huatai Securities Co.Ltd(601688) once released a research report and analyzed it, "Head securities companies usually have large business volume and low concentration. Even if they encounter some risk situations due to relatively radical risk control standards, they can control the relevant proportion at a controllable level. However, small and medium-sized securities companies have relatively small asset volume and high concentration. The proportion of risk projects of some radical small and medium-sized securities companies is significantly higher than that of peers. Under the background that the stock risk has not been fully resolved, There are certain risks. "
Even so, the above-mentioned securities companies disclosed that although shareholders "broke their positions" and defaulted frequently on the occasion of the market downturn, which was a considerable drag on the profits of securities companies, the stock pledge was originally one of the most important gold absorption sectors outside the traditional business of securities companies. "Money is quick and easy to make. Moreover, after the credit impairment of more than 32 billion yuan was accrued in the whole industry in 2020, the credit risk left over by history has been basically cleared, and many small and medium-sized securities companies also began to want to eat this cake."
actively resolve risks
the scale of stock pledge of several securities companies decreased rapidly
As an important capital intermediary business of securities companies, stock pledge business is booming and accompanied by high risks. With the increasing volatility of the A-share market in recent years, the risk of stock pledge business has increased. For securities companies, how to take risk prevention measures to realize the high-quality development of stock pledge business is particularly important. The supervision also strengthens the work from the aspects of policy and strive to control the risk at the source.
In the interview, many respondents said that they had taken positive measures to resolve the risks of stock pledge business, including controlling the pledge rate and improving the risk index system. At the same time, the scale of stock pledge of many securities companies is also declining rapidly.
securities companies actively resolve the risk of stock pledge business
As an important capital intermediary business of securities companies, the high risk of stock pledge business has also become an indisputable fact. The risk of stock pledge is generally triggered by factors such as high pledge ratio and the decline of share price of listed companies. Against the background of the sharp decline in share prices, 2018 has become the year with the most defaults in the past years.
At the same time, as a high-frequency financing method, equity pledge is also very popular in the market. How to not only use the shares of listed companies held in hand as pledge and win financing, but also control and prevent risks is very important for the financier of funds.
"Securities companies are actively resolving the risks of stock pledge, and the scale of equity pledge of securities companies has also maintained a downward trend in recent years." A relevant person from a medium-sized securities firm in Shanghai said that after the issuance of the "Shenzhen stock exchange securities trading business guidelines No. 1 - risk management of stock pledge repo transaction", it is difficult for small securities firms to make a breakthrough in stock pledge, and the business is basically concentrated in large and medium-sized securities firms.
A relevant person from a securities firm in South China told reporters that for each securities firm, reducing the pledge rate and reserving space for operation are also important means to control the risk of stock pledge.
Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that for securities companies, whether it is market risk or moral risk, there should be sufficient preventive measures. The simplest is to control the proportion of the pledge of the shareholder, that is, the pledge rate. For example, control the pledge rate at about 50%. In addition, it is also necessary to track and understand whether the company's operation is normal, whether there may be major violations of laws and regulations, or business failure. The main body of equity pledge is generally the major shareholders of listed companies. We should fully understand its credit, financing purpose and motivation.
In order to promote the stable development of stock pledge business, various securities companies have also made great efforts.
Gf Securities Co.Ltd(000776) the Securities Finance Department of the company said that the company has established a complete risk management system for stock pledge business covering the prior, during and after events. First, in terms of project access, the company adopts prudent risk preference for pledge business, strengthens the due diligence of financiers, the management of underlying securities, and the management of financing purposes and repayment sources, and takes measures to reduce the pledge rate Handle compulsory notarization and other measures in advance to mitigate project risks; Second, in terms of duration management, establish and improve the mark to market mechanism and strengthen the continuous tracking of financiers and pledged underlying securities; When the market fluctuates greatly, strengthen the risk investigation and stress test of pledge projects; Third, for the pledge projects with potential risks, the company actively communicates and negotiates the repayment plan with the financiers, formulates practical risk mitigation plans, and actively helps the financiers solve short-term liquidity difficulties through rescue or coordination with asset management companies.
China Merchants Securities Co.Ltd(600999) proposed in last year's semi annual report that the company carefully controlled risks, continued to strengthen the standardization of capital intermediary business, the comprehensiveness of due diligence and the effectiveness of continuous management, and realized the balanced development of quality, efficiency and scale.
Zhongtai Securities Co.Ltd(600918) mainly adopts credit evaluation, counterparty management, due diligence, limit management, mark to market management and other methods to control credit risk. For the financing business, the company improves the risk index system, establishes the risk limit of each business exposure, and defines the approval authority of each level. In addition, the company continued to strengthen the mark to market notification service, implemented the multiple mark to market system, and the relevant departments independently arranged special personnel to monitor the risk indicators and mark to market the underlying securities and customer public opinion risks every day. At the same time, the company established a good communication and cooperation mechanism and a sound risk emergency response plan, In case of risk, implement the risk reporting procedure according to the system and take risk emergency disposal measures in time.
Last year, the stock pledge financing business of securities continued to maintain the business idea of "controlling risk and adjusting structure", strengthen project risk management and develop stock pledge business with high quality.
Guosen Securities Co.Ltd(002736) establish a stock pledge repo business system with liquidity as the core, continuously improve the underlying securities and pledge rate model, and further reduce the scale of stock projects to further mitigate business risks. In addition, focusing on the equity incentive, independent exercise and exercise financing business of listed companies, the company has built an intelligent and professional comprehensive service platform for listed companies to further consolidate its industry-leading advantage in this business field.
In Dong Dengxin's view, both from the main body of the market and the macro level, we should strengthen the equity pledge from the aspects of policy, supervision to the establishment of risk control system, move the port of risk prevention forward as far as possible and control the risk at the source.
The supervision also took action in time to protect the risk of stock pledge business from the system. At the end of 2021, the Shenzhen Stock Exchange issued the guidelines for securities trading business of Shenzhen Stock Exchange No. 1 - risk management of stock pledge repo transactions, which put forward more detailed management requirements for securities companies to engage in relevant businesses. The guidelines have been officially implemented since January 1 this year. According to the guidelines, securities companies should establish a complete risk management system and internal control mechanism for stock pledge repurchase in accordance with the principles of sound, reasonable, checks and balances and independence, standardize the review and decision-making process of major businesses, and enhance the ability of risk self-prevention and restraint. In addition, securities companies should prudently carry out the incremental business of stock pledge repurchase, and the scale of incremental business must match the risk management ability and continuous compliance status of stock business.
the scale of equity pledge of securities companies decreased rapidly
From the financial reports released by securities companies, the scale of securities companies' stock pledge is also declining rapidly. At the same time, the proportion of performance maintenance guarantee is increased to reduce credit risk.
On the one hand, according to the 2021 interim report, China Securities Co.Ltd(601066) stock pledge performance guarantee ratio is 443.63%, ranking first among the listed securities companies that have disclosed this ratio. In addition, the performance guarantee ratio of 11 listed securities companies Southwest Securities Co.Ltd(600369) , China Galaxy Securities Co.Ltd(601881) , Gf Securities Co.Ltd(000776) , China International Capital Corporation Limited(601995) , Guolian Securities Co.Ltd(601456) , Zhongtai Securities Co.Ltd(600918) , Sinolink Securities Co.Ltd(600109) , Zheshang Securities Co.Ltd(601878) , China Merchants Securities Co.Ltd(600999) , Hongta Securities Co.Ltd(601236) , Haitong Securities Company Limited(600837) is also higher than 300%.
On the other hand, by the end of June 2021, China Merchants Securities Co.Ltd(600999) stock pledge repurchase had raised 264.863 billion yuan, down 11.98% from the end of 2020; Shenwan Hongyuan Group Co.Ltd(000166) the financing balance of stock pledge business funded by securities with its own funds was 8.182 billion yuan, a decrease of 28.85% compared with the end of the previous year. The average performance guarantee ratio of the company's stock pledge business was 179.50%; Tianfeng Securities Co.Ltd(601162) in the first half of last year, the scale of on balance sheet stock pledge repurchase business was 1.212 billion yuan, a year-on-year decrease of 18.55%, the average maintenance guarantee ratio was 160.07%, and the scale of off balance sheet stock pledge repurchase business was 2.219 billion yuan; Haitong Securities Company Limited(600837) the scale of stock pledge business decreased to 31.613 billion yuan, compared with 33.302 billion yuan at the end of last year; Guosen Securities Co.Ltd(002736) the balance of stock pledge repurchase business funded by its own funds was 10.02 billion yuan, a decrease of 20% over the end of the previous year.
From the perspective of the whole market situation, according to data statistics, as of February 18, the number of A-share pledged shares was 577.923 billion, accounting for 5.5% of the total share capital, and the market pledge market value was 5140.498 billion yuan. Compared with the end of last year, the number of A-share pledged shares had dropped significantly. As of December 31, 2021, the number of A-share pledged shares was 574.688 billion, accounting for 6% of the total share capital.
Insiders of an old securities firm in East China added that the equity pledge business industry has a high concentration, and the cr11 of the funds financed by stock pledge repo has reached 70%. Large securities firms have more business resources and are easier to reduce the impact of single project default through decentralization.
The securities and Finance Department of Gf Securities Co.Ltd(000776) company told reporters that since this year, the company has not added any pledge items that need to be closed compulsorily. The company attaches great importance to the stock default projects, continues to actively track and deal with them, and resolves the default risk through a variety of measures, such as compulsory closing, judicial procedures, negotiating risk resolution plans with the financing parties, etc. Among them, in terms of compulsory liquidation, the company strictly abides by the company's internal and external rules and regulations on the default disposal of stock pledge and the relevant provisions on share reduction, which has not affected the stability of the financial system.
In an interview with reporters, a number of large securities companies said that their stock pledge business is generally in good condition, and the pledge has been supplemented for those lower than the early warning line.
