Another two securities companies’ refinancing plans were approved by the CSRC.
On March 17, Orient Securities Company Limited(600958) announced that the company had received the reply on approving Orient Securities Company Limited(600958) share allotment issued by the CSRC, which approved the company to allot 1.67 billion new shares to the original shareholders, and the proposed fund-raising would not exceed 16.8 billion yuan.
Orient Securities Company Limited(600958) this allotment is a synchronous issuance of a + H shares. Previously, the announcement on Orient Securities Company Limited(600958) 2 February 23 showed that the application for H-share allotment had been approved by the CSRC.
Orient Securities Company Limited(600958) in the announcement in response to the feedback from the CSRC, the specific purpose of the fund-raising was introduced, mainly including: investment banking business (no more than 6 billion yuan), wealth management and securities finance business (no more than 6 billion yuan), sales and trading business (no more than 3.8 billion yuan) and supplementary working capital (no more than 1 billion yuan).
In terms of investment banking business, first, enhance the underwriting ability of equity financing and bond financing of the company, including follow-up investment of projects on the science and innovation board and gem and bond underwriting capital investment, with an investment amount of no more than 3 billion yuan; Second, increase investment in equity investment business, mainly including equity investment in the primary market and expansion of private equity funds, with an investment amount of no more than 3 billion yuan.
In terms of wealth management and securities finance business, first, increase the investment in margin trading, with an investment amount of no more than 5 billion yuan; Second, promote the transformation of wealth management business, deepen cooperation with institutional customers, and improve product service capabilities, including product consignment and seed funds, with an investment amount of no more than 1 billion yuan.
In terms of sales and trading business, it is expected to invest no more than 3.8 billion yuan, which is mainly used for the investment of self operated investment business of fixed income, expand the investment scope and enrich the investment strategy in the fields of financial derivatives business and equity investment.
In terms of performance, the net profit of Orient Securities Company Limited(600958) 2021 increased by 97.27%. Among them, the asset management business rose strongly. The total management scale of Dongzheng asset management at the end of 2021 exceeded 360 billion yuan, an increase of 23% over the beginning of the year.
On the same day, Sinolink Securities Co.Ltd(600109) announced that the CSRC approved the company’s non-public offering of no more than 700 million new shares and planned to raise no more than 6 billion yuan.
Sinolink Securities Co.Ltd(600109) fixed increase plan shows that the net funds raised after deducting the issuance expenses are intended to be used to increase the company’s capital, supplement working capital, repay debts, expand the company’s business scale, etc.
Following the special meeting held by the Finance Committee on March 16, all financial units have also introduced measures based on the work responsibilities of their own departments. The securities industry will usher in substantial benefits and improve the efficiency of capital use.
On March 17, China Securities Depository and Clearing Co., Ltd. (CSDCC) announced that CSDCC, in coordination with the ongoing DVP reform, will reduce the payment proportion of the minimum settlement provision for stock business from 18% to 16% from April 2022.
Dongxing Securities Corporation Limited(601198) believes that reducing the minimum payment proportion of settlement reserves of settlement participants is conducive to reducing the occupation of funds in the whole market and improving the efficiency of fund use. In 2021, the securities industry realized a net profit of 191119 billion yuan, a net asset scale of 2.57 trillion yuan, and an roe of about 7.44%. According to the profitability estimation, the release of 38 billion working capital will bring about 2-3 billion yuan of net income increment to the securities industry.
