At present, the public fund business has become one of the important driving points for the transformation of asset management business of securities companies. Many securities companies have made efforts to layout the public fund market by increasing their holdings, holding shares or applying for licenses. Since the beginning of this year, China Securities Co.Ltd(601066) has increased its shareholding of China Securities Co.Ltd(601066) fund to 100%, and Guotai Junan Securities Co.Ltd(601211) has increased its shareholding of Hua’an fund to 43%.
more securities companies increase their equity of fund companies
Previously, many head securities companies were restricted by the “one participation and one control” policy and were unable to apply for public fund licenses. Until July 31, 2020, the CSRC issued the measures for the supervision and administration of managers of publicly offered securities investment funds (Draft for comments), allowing the same subject to control a fund company and a publicly offered licensed institution at the same time. Since then, Guotai Junan Securities Co.Ltd(601211) asset management quickly won the license of public fund. Recently, Guotai Junan Securities Co.Ltd(601211) public offering business layout further and continued to increase the equity of Hua’an fund.
On March 14, Guotai Junan Securities Co.Ltd(601211) announced that recently, the China Securities Regulatory Commission officially approved Guotai Junan Securities Co.Ltd(601211) to transfer 15% equity of Hua’an fund held by Shanghai SDIC Asset Management Co., Ltd. After the completion of this equity transfer, Guotai Junan Securities Co.Ltd(601211) holding the equity ratio of Hua’an fund will rise from 28% to 43%, becoming the largest shareholder of Hua’an fund. By the end of 2021, the asset scale of public funds under Hua’an fund has been nearly 600 billion yuan, and the management scale of non monetary public assets has exceeded 382 billion yuan.
Guotai Junan Securities Co.Ltd(601211) said that the increase in the equity of Hua’an fund is another important measure to improve the core competitiveness of the public asset management business after Guotai Junan Securities Co.Ltd(601211) transferred 8% equity of Hua’an fund in 2021, and the asset management company obtained the public offering license and issued public offering products. Take the opportunity of increasing holdings to open up the wealth management and asset management service chain, actively meet the wealth management needs of customers in different levels and classifications, and comprehensively improve the allocation capacity of global high-quality assets.
Previously, China Securities Co.Ltd(601066) also increased its shareholding of China Securities Co.Ltd(601066) fund step by step to 100%. In April last year, after China Securities Co.Ltd(601066) transferred 20% equity of China Securities Co.Ltd(601066) fund held by Jiangsu Guangchuan Broadcasting Media Co., Ltd., the shareholding ratio of China Securities Co.Ltd(601066) fund increased from 55% to 75%. In January this year, after China Securities Co.Ltd(601066) transferred 25% equity of China Securities Co.Ltd(601066) fund held by Aerospace Hi-Tech Holding Group Co.Ltd(000901) Finance Co., Ltd., the shareholding ratio of China Securities Co.Ltd(601066) fund increased to 100%. Since then, China Securities Co.Ltd(601066) fund has become a wholly-owned subsidiary of China Securities Co.Ltd(601066) .
Chen Mengjie, chief strategist of YueKai securities, said in an interview with Securities Daily: “There are many advantages for securities companies to increase their shareholding in public fund subsidiaries. On the one hand, under the background of the new regulations on asset management, securities companies can take this opportunity to transform their asset management business; on the other hand, securities companies can take this opportunity to participate in the public fund market and expand the public fund track, making it a new starting point for securities companies’ business.”
14 securities firms holding public offering licenses
In recent years, securities companies have continuously increased their shareholding in public funds or applied for public fund licenses. Up to now, the number of securities companies holding public fund licenses has increased to 14, including 6 securities companies including Huarong securities, Shanxi Securities Co.Ltd(002500) , Guodu securities, Dongxing Securities Corporation Limited(601198) , Beijing Gaohua securities, Boc International (China) Co.Ltd(601696) and 8 securities companies including Dongzheng asset management, Zhejiang asset management, Bohai Huijin, CAITONG asset management, Changjiang asset management, Huatai asset management, Zhongtai asset management, Guotai Junan Securities Co.Ltd(601211) asset management.
The continuous penetration of securities companies into the public fund business will make the competition pattern of the public fund industry more and more intense. Chief economist of Chuancai securities Chen Li, director of the Research Institute, said in an interview with the reporter of Securities Daily: “After obtaining the public offering fund license, securities companies will have the advantage of full license in business. For the customers of listed companies, they can not only provide brokerage services to help them issue bonds and increase fixed value, but also provide institutional business cooperation, form synergy with them, and provide deeper services in wealth management business.”
At present, the establishment of asset management companies by six securities companies, including Sinolink Securities Co.Ltd(600109) , Huachuang securities, Shenwan Hongyuan Group Co.Ltd(000166) , China International Capital Corporation Limited(601995) , China Securities Co.Ltd(601066) , Citic Securities Company Limited(600030) , is still under examination and approval. Meanwhile, Guolian Securities Co.Ltd(601456) plans to set up a public offering business department and apply for the qualification of public fund management business Central China Securities Co.Ltd(601375) has the intention to become the controlling shareholder of the public fund company by means of capital increase Western Securities Co.Ltd(002673) increased capital by 10.2 million yuan to its holding subsidiary Western profit fund in monetary form. In addition, many securities companies have begun to prepare or are willing to apply for public fund licenses, while Minmetals securities and Huajin securities are still in line.
\u3000\u3000 “At present, the public fund business mainly depends on the scale, and the support of shareholders is very important to the development of the public fund business. Compared with other wealth management businesses, the public fund business is more flexible. Once the bull market comes, it will attract a large amount of funds to enter the market, and the demand for the public fund business will rise. Driven by the star fund products, the public fund business will grow rapidly The expansion will make it possible for the explosive growth of the asset management scale of securities companies. ” Chen Li told reporters.
