The development of capital business puts forward higher requirements for the capital of securities companies. Since last year, the securities industry has entered a “new cycle” of capital increase and capacity expansion. In the future, the development trend of the securities industry will be to pay attention to both capital business and light capital business.
At the same time, in the context of building “aircraft carrier level” securities companies, Citic Securities Company Limited(600030) , China Galaxy Securities Co.Ltd(601881) and other head securities companies have mentioned this goal in the refinancing plan. The regulatory authorities also expressed support for securities companies to continuously enrich their capital strength.
Dongguan securities meeting this week
listed securities companies are expected to expand to 42
In recent years, regulatory policies have supported securities companies to broaden financing channels, increase the proportion of direct financing, strengthen risk control, and encourage securities companies to further supplement capital and enhance capital strength.
On February 18, the CSRC said that it has always supported securities companies to enrich their capital strength, optimize corporate governance, consolidate basic functions, improve their core competitiveness and provide relevant supporting policies on the premise of legal compliance. First, support securities companies to expand their capital strength in an orderly manner according to law; Second, promote securities companies to improve their corporate governance level and compliance risk control ability; Third, support securities companies to improve their professional level and core competitiveness.
At present, securities companies continue to expand capital scale and consolidate capital strength through direct financing and refinancing. From the perspective of direct financing, according to the reporter of Securities Daily, since the first securities firm landed on A-Shares in 1994, except for 6 securities firms listed on A-Shares in 1997, the pace of securities firms listing in other years was relatively slow. From 1994 to 2017, a total of 29 securities firms were listed on a shares. Until 2018 and 2019, the IPO of securities companies accelerated, and the A-share market ushered in seven listed securities companies.
Since then, in 2020, the gem registration system has been implemented, the reform of the financing end of the capital market is getting better, and A-Shares have ushered in Boc International (China) Co.Ltd(601696) , Zhongtai Securities Co.Ltd(600918) , Guolian Securities Co.Ltd(601456) , China International Capital Corporation Limited(601995) 4 new members. In 2021, Caida Securities Co.Ltd(600906) landed in a shares. In 2022, Dongguan securities, which “sharpens a sword in seven years” (the prospectus was submitted in 2015), will hold a meeting on Thursday. If the IPO is successful, the team of listed securities companies may be expanded to 42. At present, the securities companies still waiting in line to be listed also include Wanlian securities, Cinda securities, capital securities and Bohai Securities.
From the perspective of the initial fund-raising scale of a shares, 41 listed securities companies raised about 166.29 billion yuan in total, and 6 securities companies raised more than 10 billion yuan, of which the top three were Guotai Junan Securities Co.Ltd(601211) IPO in 2015 (raising 30.058 billion yuan), Huatai Securities Co.Ltd(601688) IPO in 2010 (raising 15.691 billion yuan) and China International Capital Corporation Limited(601995) IPO in 2020 (raising 13.198 billion yuan).
In this regard, Chen Mengjie, chief strategic analyst of YueKai securities, said in an interview with Securities Daily, “For securities companies, their capital scale restricts the upper limit of the development of securities companies to a considerable extent. On the one hand, the capital scale of securities companies determines the business scale of securities companies and can also bring more investment profits and business space; on the other hand, the larger the capital scale of securities companies means that the stronger the profitability and anti risk ability, the more they can attract external capital investment. Therefore, in the current securities companies Under the background of obvious head effect, the use of IPO for capital supplement is conducive to small and medium-sized securities companies to further give play to their strong business advantages according to their resource endowment, create differentiated competitiveness, raise the business ceiling and realize overtaking. “
total refinancing
accumulated over 500 billion yuan
Compared with IPO, the refinancing of securities companies is quite fierce.
According to the reporter of Securities Daily, since 1994, listed securities companies (excluding concept stocks) have completed a total of 516.065 billion yuan of refinancing and fund-raising, far exceeding the scale of IPO; Among them, 379.387 billion yuan was raised through fixed increase, 112.078 billion yuan was raised through allotment, and 24.6 billion yuan was raised through convertible bond issuance; So far, 76.564 billion yuan of financing plan is still “on the road”. This year, Citic Securities Company Limited(600030) A shares have just been issued successfully, raising a total of 22.396 billion yuan, setting a new high in the scale of share allotment financing in the A-share securities industry. “Responding to the national strategy and building an ‘aircraft carrier class’ brokerage” is an important consideration for Citic Securities Company Limited(600030) to issue shares.
However, the refinancing of securities companies is not plain sailing. China Galaxy Securities Co.Ltd(601881) after throwing out the convertible bond plan of no more than 11 billion yuan in October last year, the total amount of convertible bonds to be issued was reduced to no more than 7.8 billion yuan in January this year. In the convertible bond scheme, China Galaxy Securities Co.Ltd(601881) also said that it would strive to achieve the strategic goal of “building an aircraft carrier brokerage and establishing a modern investment bank” and become a leading all-round securities company in the industry. China Greatwall Securities Co.Ltd(002939) on February 18, it was announced that the total amount of proposed additional fund-raising would be adjusted from no more than 10 billion yuan to no more than 8.464 billion yuan.
The Sinolink Securities Co.Ltd(600109) twists and turns of fixed growth have made new progress. Recently, the CSRC decided to resume the examination of Sinolink Securities Co.Ltd(600109) fixed increase application; Just in January, the legal services provided by the law firm hired by Sinolink Securities Co.Ltd(600109) fixed increase for other companies were filed for investigation by the CSRC, and the examination of the application for fixed increase was suspended. In 2016, the fixed increase of Sinolink Securities Co.Ltd(600109) was forced to suspend the review because the sponsor was filed for investigation. Although it was resumed later, the fixed increase still failed.
It should be noted that while becoming bigger and stronger, securities companies should also pay attention to their own moral hazard and problems such as “too big to fail”.
In recent years, the people’s Bank of China, together with the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, has continuously strengthened the supervision of China’s systemically important financial institutions and balanced the relationship between development, risk and stability. In 2018, the people’s Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission jointly issued the guidance on improving the supervision of systemically important financial institutions, clarifying the definition and scope of systemically important financial institutions, stipulating the evaluation process and overall method of systemically important financial institutions, and reasonably identifying financial institutions that have a systematic impact on the financial system. Next, the people’s Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission will study and promote the introduction of relevant implementation rules according to the division of responsibilities.
\u3000\u3000 “After the listing and refinancing of securities companies, due to the expansion of business scale, although the profitability and space will be improved, the potential risks will also be enhanced. Therefore, small and medium-sized securities companies actively rely on refinancing to become bigger and stronger and enhance their core competitiveness, they should pay more attention to the ability of compliance risk control. Small and medium-sized securities companies can make it clear by improving leverage, liquidity supervision and other indicators Confirm the counter cyclical adjustment mechanism to improve the completeness and effectiveness of risk control indicators; At the same time, employees shall be supervised in strict accordance with the self-discipline management rule system to prevent violations. ” Chen Mengjie told reporters.
benchmarking foreign top investment banks
Chinese securities companies still need to work hard
At present, the securities industry is gradually forming an industry pattern with large comprehensive securities companies taking the lead, small and medium-sized and regional securities companies developing with characteristics, and the industry ecology of inter-bank merger and mixed industry integration has initially appeared.
By September 30, 2021, the total assets of 140 securities companies had exceeded 10 trillion yuan for the first time to 10.31 trillion yuan.
Among them, Citic Securities Company Limited(600030) has risen rapidly, becoming the first and only securities firm in China with total assets exceeding trillion yuan. Its total assets, net assets, operating income, net profit and other indicators rank first in the industry. Compared with the total assets of 11.5 billion yuan in 2005, Citic Securities Company Limited(600030) has achieved leapfrog growth in more than 10 years and jumped to the leading position in the industry, The net profit in 2021 has exceeded 22 billion yuan. However, the total assets of Goldman Sachs, the top foreign investment bank, have exceeded US $1.4 trillion, and there is still a big gap between Citic Securities Company Limited(600030) known as “Maizidian Goldman Sachs”.
Liu Jiawei, chief analyst of non bank financial industry, said in an interview with Securities Daily, “To become bigger and stronger, securities companies mainly expand the scale of assets by enhancing their capital strength and appropriately enlarging their leverage; to become stronger, they need to optimize their business structure, improve the efficiency of capital use, and then improve their roe. While becoming bigger and stronger, large securities companies need to improve their corporate governance ability and risk control ability, and their business ability and risk management go hand in hand.”
Under the situation that the strong securities companies are always strong, how should small and medium-sized securities companies survive in the cracks? Liu Jiawei said, “under the strong Matthew effect in the current industry, small and medium-sized securities companies have obvious disadvantages if they compete directly with large securities companies. However, if they give full play to their differentiated advantages in investment banking, asset management and other sub circuits, they may be able to stand out in the fierce competition in the industry.”
