Since the beginning of 2022, there has been a surge of changes in senior executives in the securities industry. According to incomplete statistics, so far this year, 12 securities companies have undergone senior management personnel changes (Chairman, general manager, vice president, etc.), involving 14 people.
In recent years, the change of senior executives in the securities industry has entered an accelerated period. On the one hand, the industry competition is becoming increasingly fierce, and the business war such as brokerage and investment banking has spread to the talent war; On the other hand, the market-oriented and open selection and employment of senior executives has formed a trend in the industry, accelerating the change of senior executives, especially at the end of the year.
“Changing generals is like changing sails”. The strategy of senior management sometimes determines the fate of an enterprise and reflects the changing trend of the industry. Behind the frequent replacement of senior management of securities companies, it is worth paying attention to what kind of business layout is brewing among securities companies? Can it stir the pattern of the securities industry?
senior management changes are like a tide, and “young people” are emerging
According to the statistics of the reporter of Shanghai Securities News, since the beginning of 2022, the senior executives of 12 securities companies, including Guodu securities, Shanghai Securities, Gf Securities Co.Ltd(000776) , Changjiang Securities Company Limited(000783) , Jianghai securities, Yintai securities, China Merchants Securities Co.Ltd(600999) , have changed, including job hopping, internal promotion, internal transfer, etc.
Generally speaking, the reasons for the change of senior positions in securities companies are divided into retirement at the age of retirement and replacement with the fresh blood of the younger generation; Leave the site sadly due to business decline or punishment; Change jobs and find another job. Among them, rejuvenation is a significant trend in the change of senior executives. A group of young executives of the “Post-70s” and “post-80s” are emerging and shoulder heavy responsibilities.
At the beginning of January this year, Soochow Securities Co.Ltd(601555) the board of directors agreed to appoint “Post-70s” Yao Dian as the vice president of the company; In February, Xiao Jian, born in 1973, was promoted to Changjiang Securities Company Limited(000783) vice president by the general manager of the business department. Last July, Gf Securities Co.Ltd(000776) promoted four new deputy general managers at one time from the inside, all of whom are “Post-70s” and “post-80s”, showing the younger trend of the senior management team.
From the perspective of the working background of the newly appointed senior management, it can be roughly divided into three categories: the first category is “wealth management veterans” with many years of working experience, the second category is senior people with investment banking background, and the third category has working experience in the regulatory department. Successors from different backgrounds give full play to their unique advantages after taking office, which is conducive to helping securities companies develop in different businesses such as investment banking, wealth management and asset management.
investment bank veterans go to battle to welcome the comprehensive registration system
There is no lack of changes in the business structure of the securities industry, which reflects the direction of the company’s internal restructuring of the securities industry. Since the beginning of this year, the comprehensive registration system for stock issuance has been accelerated, investment banks have ushered in a golden era of development, and the executives of securities companies and investment banks have also undergone great changes at the same time.
In January this year, after the post of president of Zhongtian Guofu was suspended for four months, Zhao Lifeng, a veteran of investment bank and former president of Huajin securities, took over. From the perspective of resume, Zhao Lifeng has rich experience in investment banking, and has held relevant positions in investment banking in Jiangsu securities, Citic Securities Company Limited(600030) , Central China Securities Co.Ltd(601375) and other securities companies. In addition, Yan Wenbo, a veteran investment banker, assumed the post of president of Xinhua gold securities at the end of December last year.
Since taking charge of Sealand Securities Co.Ltd(000750) investment banking business in 2009, Yan Wenbo has advocated the strategy of “based on regional development and building characteristic investment banks”, emphasizing the role of stock debt linkage, strengthening industrial diversion and building differentiated competition. After taking office in Huajin securities, he also implemented the idea of “differentiated development”.
“Under the registration system with information disclosure as the core and market-oriented pricing, the responsibilities of securities companies have been further compacted, and the practice quality and professional ability of investment banks have been given higher requirements. For small and medium-sized securities companies, it helps to form a characteristic and differentiated development pattern.”
In May 2021, Sinolink Securities Co.Ltd(600109) veteran Jin Peng resigned and Jiang Wenguo, the “pioneer” of the company’s investment banking business, took over as general manager. Sinolink Securities Co.Ltd(600109) is an investment bank driven characteristic brokerage. In 2020, the net income of this business was 1.67 billion yuan, accounting for nearly 30% of the total revenue.
It is reported that Sinolink Securities Co.Ltd(600109) has great determination to expand and strengthen investment banks. The relevant person in charge of the company said that Sinolink Securities Co.Ltd(600109) has defined the development strategy of investment banking, in which the development plan of stock business is to form a certain influence and brand effect in important regions and key industries; The development plan of bond business is to strive to rank among the top 10 in the industry in terms of bond underwriting income or underwriting scale within five years.
The person also said that the strategic principle formulated by the company is guided by investment behavior and driven by research. In addition, in order to cope with the promotion of the comprehensive registration system, the company continues to increase investment banking related personnel. Up to now, the company has more than 700 investment banking personnel.
wealth management is still the golden track
Looking at the resumes of newly appointed senior executives since 2022, another important change is that many “veterans” of brokerage business lines have been vigorously promoted, and some have even been “promoted” from business department manager to vice president, which has something to do with the current emphasis on wealth management in the brokerage industry.
In February this year, Shanghai Securities appointed Luo Guohua, the former vice president of Changjiang Securities Company Limited(000783) as the general manager, which is closely related to the layout of wealth management business of Shanghai Securities. According to the data, Luo Guohua once served as the deputy general manager and general manager of Changjiang Securities Company Limited(000783) retail customer headquarters and the director of brokerage business of Changjiang Securities Company Limited(000783) . Luo Guohua’s “good” wealth management field is also the focus of Shanghai Securities transformation. He Wei, chairman of Shanghai Securities, previously said publicly that the new development strategy proposed to develop the company into a “wealth management brokerage with distinctive characteristics, regional leadership, well-known brands and professional characteristics”.
After Luo Guohua, the vice president of Changjiang Securities Company Limited(000783) resigned, Xiao Jian, the general manager of the business department who has worked in the company for 14 years, was promoted to the position of vice president in charge of brokerage business.
In January this year, Sealand Securities Co.Ltd(000750) appointed Jiang Jian, the former administrative head of Founder Securities Co.Ltd(601901) brokerage business management department, as the vice president of the company.
It is reported that Jiang Jian publicly expressed his views on the transformation of wealth management of securities companies during his tenure in Founder Securities Co.Ltd(601901) . In Jiang Jian’s view, the transformation of wealth management has become the consensus of the securities industry. In the future, the development of wealth management industry will be driven by three factors, namely, investment consultants, financial products and asset allocation.
At present, wealth management has gradually become an important driving force for the performance growth of securities companies. From the perspective of securities companies that have disclosed the performance forecast of 2021, China International Capital Corporation Limited(601995) disclosed the main unaudited financial data of CICC wealth in 2021. The net profit attributable to the owner of CICC wealth was 2.075 billion yuan, a year-on-year increase of 13.16%. Everbright Securities Company Limited(601788) said that the growth of financial management business income over the same period of last year was one of the main reasons for its performance growth.
Dongxing Securities Corporation Limited(601198) Liu Jiawei, chief analyst of the non bank financial industry, said that under the background of the adjustment of the asset allocation structure of Chinese residents, the gradual improvement of the capital market and the specialization of investment institutions, the medium and long-term trend of the development of wealth management will not change. At present, although the share of the securities industry in wealth management is small, the long-term growth space is very considerable. Overall, wealth management is still a very clear quality track.
