We have increased investment in it and financial achievements in 2021.
Among the 26 securities companies that have disclosed the annual report data, 21 have disclosed the information technology investment expenses. Generally speaking, the IT investment of securities companies will reach a new level in 2021. While the head securities companies are steadily “running fast”, small and medium-sized players are not stingy.
First, in terms of investment amount, the total IT investment of the above 21 securities companies was 13.854 billion yuan, a year-on-year increase of 36.84% over 2020. Among them, there are 5 enterprises with an investment of more than 1 billion yuan, and only 2 enterprises in the whole industry in 2020. The top three IT investment amounts in 2021 are Huatai Securities Co.Ltd(601688) (2.228 billion yuan), which is also the only securities firm in the industry with an IT investment exceeding 2 billion yuan; The other top five securities companies are China International Capital Corporation Limited(601995) (1.346 billion yuan), China Merchants Securities Co.Ltd(600999) (1.192 billion yuan), Haitong Securities Company Limited(600837) (1.176 billion yuan), and China Securities Co.Ltd(601066) (1.093 billion yuan).
Second, in terms of investment growth, except for Hongta Securities Co.Ltd(601236) , the IT investment of the other 20 securities companies increased unabated, of which Chinalin Securities Co.Ltd(002945) IT investment surged nearly three times, and the amount of China International Capital Corporation Limited(601995) investment also doubled Orient Securities Company Limited(600958) (63.25%), China Industrial Securities Co.Ltd(601377) (51.89%), China Securities Co.Ltd(601066) (40.49%), Shenwan Hongyuan Group Co.Ltd(000166) (38.99%), Haitong Securities Company Limited(600837) (34.40%).
Third, the proportion of revenue. As an additional item of classified rating, all securities companies pay special attention to this proportion. In 2021, there were not a few securities companies whose IT investment accounted for more than 5% of revenue. At present, there are 18; There are also five companies with a proportion of more than 10%, which will be zero in 2020. Securities companies with it investment accounting for more than 10% include: Chinalin Securities Co.Ltd(002945) (25.17%), Huatai Securities Co.Ltd(601688) (13.96%), China International Capital Corporation Limited(601995) (11.95%), Central China Securities Co.Ltd(601375) (11.19%) and Zhongtai Securities Co.Ltd(600918) (10.05%).
Although the IT investment of securities companies has been increasing, its volume is still far from that of banks. In 2021, Industrial And Commercial Bank Of China Limited(601398) IT investment was 25.987 billion yuan, China Construction Bank Corporation(601939) was 23.576 billion yuan, Bank Of China Limited(601988) was 18.618 billion yuan, China Merchants Bank Co.Ltd(600036) was 13.291 billion yuan. In other words, the total IT investment of the above 21 securities companies in 2021 (RMB 13.854 billion) is equivalent to that of China Merchants Bank Co.Ltd(600036) one (RMB 13.291 billion), and even Huatai Securities Co.Ltd(601688) is not enough for China Merchants Bank. Of course, such a distance is inseparable from the size of the bank.
In 2021, the proportion of China Merchants Bank Co.Ltd(600036) technology investment in revenue was 4.45%, that of China Construction Bank Corporation(601939) was 2.86%, and that of Industrial And Commercial Bank Of China Limited(601398) was only 2.76%; However, there are not a few securities companies whose IT investment accounted for more than 5% of revenue in the same period. At present, there are 18; More than 10% of them also have 5, which will be zero in 2020. This shows that the securities industry attaches importance to it investment.
5 IT companies invested more than 1 billion, an increase of 3 over the previous year, and Huatai ranked first again with 2.2 billion
Thanks to the capital strength and income generating ability, the head securities companies are often better in the absolute value of IT investment.
Among the 21 securities companies, 5 have invested more than 1 billion yuan in it, and they are all the same top securities companies, namely Huatai Securities Co.Ltd(601688) , China International Capital Corporation Limited(601995) , China Merchants Securities Co.Ltd(600999) , Haitong Securities Company Limited(600837) and China Securities Co.Ltd(601066) ; In 2020, there were only Huatai Securities Co.Ltd(601688) and Guotai Junan Securities Co.Ltd(601211) in the whole industry, and China International Capital Corporation Limited(601995) , China Merchants Securities Co.Ltd(600999) and Haitong Securities Company Limited(600837) , China Securities Co.Ltd(601066) exceeded RMB 1 billion for the first time. In addition, there are 10 securities companies with an IT investment of more than 500 million in 2021, including Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) , Shenwan Hongyuan Group Co.Ltd(000166) , Zhongtai Securities Co.Ltd(600918) and China Industrial Securities Co.Ltd(601377) , which are basically large and medium-sized securities companies.
In terms of specific amount, Huatai Securities Co.Ltd(601688) still takes the lead, and the amount of IT investment has been in the top position for two consecutive years. In 2021, the amount of IT investment exceeded 2 billion yuan for the first time, reaching 2.228 billion yuan, and it is also the only securities firm with more than 2 billion yuan Huatai Securities Co.Ltd(601688) in recent years, the investment in technology finance is obvious to all in the industry. In 2018, its IT investment was 1.085 billion yuan, and the amount has doubled in the four years to 2021.
China International Capital Corporation Limited(601995) , ranked second in the amount of IT investment. In 2021, it investment reached 1.346 billion yuan, and the ranking was also significantly higher than the 8th in 2020 China Merchants Securities Co.Ltd(600999) it investment is 1.192 billion yuan, ranking the third temporarily Haitong Securities Company Limited(600837) (RMB 1.176 billion) and China Securities Co.Ltd(601066) (RMB 1.093 billion) followed, ranking 4th and 5th Among the top 10 securities companies in IT investment are Gf Securities Co.Ltd(000776) (985 million yuan), Orient Securities Company Limited(600958) (875 million yuan), Shenwan Hongyuan Group Co.Ltd(000166) (828 million yuan), Zhongtai Securities Co.Ltd(600918) (808 million yuan), and China Industrial Securities Co.Ltd(601377) (764 million yuan).
It is worth noting that under the heavy investment of head players, there are also 8 securities companies with an investment amount of less than 300 million yuan, highlighting the polarization of it construction of securities companies. In addition, there is also an obvious fault between the top 10 securities companies. The number one Huatai Securities Co.Ltd(601688) (2.228 billion yuan) is more than half of the number two China International Capital Corporation Limited(601995) (1.346 billion yuan) and nearly twice the size of the third China Merchants Securities Co.Ltd(600999) and the tenth China Industrial Securities Co.Ltd(601377) respectively.
Hualin investment surged three times, and China International Capital Corporation Limited(601995) also doubled
Compared with 2020, the digital transformation of the securities industry has accelerated. Among the 21 disclosed securities companies, the amount of IT investment has increased year-on-year, and only Hongta Securities Co.Ltd(601236) 1 have decreased instead of increasing, with a decline of 9.70%.
There are 7 securities companies with a year-on-year growth rate of more than 30%, of which the amount of Chinalin Securities Co.Ltd(002945) investment has increased three times, and the amount of China International Capital Corporation Limited(601995) investment has also doubled.
Specifically, in 2021, the top 10 brokers among the top 10 in terms of the growth rate of IT investment in 2021, the top 10 in terms of the growth rate of IT investment in 2021, the top 10 brokers of IT investment growth in 2021. The top 10 brokers are: Hongda Xingye Co.Ltd(002002) Shenzhen Capol International&Associatesco.Ltd(002949) 45 \ (34.40%), Huatai Securities Co.Ltd(601688) (26.23%), Central China Securities Co.Ltd(601375) (24.16%) and Huaan Securities Co.Ltd(600909) (23.36%).
When it comes to overtaking on the curve, China International Capital Corporation Limited(601995) is undoubtedly the biggest dark horse among the head securities companies. In 2021, its IT investment reached 1.346 billion yuan, a year-on-year increase of 109.98%. In 2021, China International Capital Corporation Limited(601995) first entered the “10 billion net profit club”, and the performance is a high integration of technology and business.
According to Huang Zhaohui, CEO of China International Capital Corporation Limited(601995) company, after one year’s efforts, the company not only greatly improved the degree of business systematization and organizational operation efficiency, but also significantly enhanced the integration of business and technology under the catalysis of technology federalism, full agile transformation and digital chemical plant. The information technology team is no longer solely responsible for background support, but will move forward and face customers and actively seek solutions. What is certain is that digitization has quietly changed Zhongjin’s gene.
Under the “squeeze” of Matthew effect, the investment of small and medium-sized players has also been increasing, and digitization has become an important starting point for each company to create differentiated competitive advantages. Among them, Chinalin Securities Co.Ltd(002945) is the best, and the growth rate of IT investment ranks first in the whole industry. 2021 is regarded as the first year of Chinalin Securities Co.Ltd(002945) Internet transformation, testing the water, tribal system reform, holding high and fighting to dig people from large factories. The company’s annual IT investment was 347 million yuan, a year-on-year increase of 293.98%, of which the operation cost of electronic equipment alone increased by more than 6 times to 238 million yuan.
18 securities companies’ IT investment accounts for more than 5% of revenue
The importance of various securities companies to digital transformation is also reflected in the proportion of IT investment in revenue. Compared with banks, although securities companies can only catch up with them in the amount of IT investment, many securities companies have invested more than banks in the proportion of IT investment in revenue.
In 2021, the proportion of China Merchants Bank Co.Ltd(600036) technology investment in revenue was 4.45%, that of China Construction Bank Corporation(601939) was 2.86%, and that of Industrial And Commercial Bank Of China Limited(601398) was only 2.76%; However, there are not a few securities companies whose IT investment accounted for more than 5% of revenue in the same period. At present, there are 18; More than 10% of them also have 5, which will be zero in 2020.
In terms of the proportion of IT investment in revenue, the securities companies in the shoulder and waist perform well. Among them, one quarter of Chinalin Securities Co.Ltd(002945) revenue is invested in information technology, which has attracted much attention. At present, it is also the only securities company with it investment accounting for more than 20%.
The top 10 is the top 10. There are also the top 10. The top 10. There are also the top 10. The top 10. The top 10. The top 10. There are also the top 10. There are also the top 10. The top 10. There are also the top 10. There are also the top 10. There are also the top 10. There are China Pacific Insurance (Group) Co.Ltd(601601) Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 0168 Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 0168 Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 0168 Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 88 Gf Securities Co.Ltd(000776) (8.73%) and China Industrial Securities Co.Ltd(601377) (8.73%).
It is worth mentioning that Huatai Securities Co.Ltd(601688) has always been a pioneer in the industry in terms of information technology investment. Not only does the amount of investment rank first, but also the proportion of investment in revenue ranks among the top three in the industry. It can be seen that Huatai Securities Co.Ltd(601688) is committed to completely transforming its business and management mode with digital thinking and platform China International Capital Corporation Limited(601995) ‘s digital transformation began in 2020. With a lot of resources, manpower and time invested, its IT investment amount and revenue share also rank among the top three China International Capital Corporation Limited(601995) believes that in the future, financial institutions with their own scientific and technological genes are expected to gain a higher market share by seizing the opportunities of new technologies and new models.
securities firms rearrange their IT investment in recent years
Since the China Securities Association incorporated the investment in information system construction of securities companies into the annual business performance evaluation for the first time in 2018, the securities industry has paid more and more attention to information technology. In 2018, the industry wide it investment was 13.067 billion yuan, a year-on-year increase of 16.89%; The investment in 2019 was 21.669 billion yuan, a year-on-year increase of 65.84%; In 2020, the investment amount was 26.287 billion yuan, a year-on-year increase of 21.31%.
Looking at the whole industry, the amount of IT investment of listed securities companies also leads. According to the data of China Securities Association, most of the top 20 securities companies invested in it in the whole industry from 2018 to 2020 are listed securities companies, and only Ping An Securities and Anxin securities have not been listed. The amount of IT investment TOP10 is almost taken over by the head securities companies. In the past three years, the IT investment has changed one after another, and the seating number of TOP10 securities companies has also changed significantly.
From 2018 to 2019, Guotai Junan Securities Co.Ltd(601211) it investment ranked first, but was replaced by Huatai Securities Co.Ltd(601688) in 2020; In 2018, Changjiang Securities Company Limited(000783) it investment was 597 million yuan, ranking the second. However, after a round of reshuffle, the company’s IT investment decreased significantly to 275 million yuan in 2019, and the ranking also dropped sharply to the 20th. By 2020, Changjiang Securities Company Limited(000783) it investment has fallen out of the top 20 in the industry. Among the top 10 securities companies, Ping An Securities has been continuously overtaken, and its ranking has dropped from the 6th in 2018 to the 10th in 2020 Gf Securities Co.Ltd(000776) decreased from the 4th in 2018 to the 10th in 2020.
In contrast, Huatai Securities Co.Ltd(601688) 3 years, the growth rate of IT investment surged three times, and its ranking jumped from the fifth in 2018 to the second, and to the top in 2020. China Merchants Securities Co.Ltd(600999) , the company’s IT investment in 2018 was only 360 million yuan, ranking No. 10. In 2020, it has risen to 1.033 billion yuan, an increase of nearly twice in three years, and the ranking also broke through to No. 4 in the industry In addition, securities companies that have made rapid progress include China International Capital Corporation Limited(601995) , Orient Securities Company Limited(600958) and China Industrial Securities Co.Ltd(601377) .
science and technology deeply enables institutional business, and the digitization of investment banks has made a breakthrough
With the continuous in-depth promotion of digital transformation, in addition to the construction and transformation of infrastructure, the continuous optimization of system functions, the continuous innovation of application scenarios, the optimization of organizational structure and operation mode, the strengthening of foreign cooperation and the introduction of information technology talents, information technology is changing from service business to leading business and enabling business, which is particularly obvious in driving the development of institutional business. In 2021, the trading platforms independently developed by many securities companies were favored by many institutional customers with excellent performance and extreme customer experience.
XTP (China Thailand express trading platform) is the main starting point of Zhongtai Securities Co.Ltd(600918) empowering quantitative investment business through financial technology. The company has also walked out of the differentiation route with its independent research and development of XTP. In 2021, XTP established a comprehensive product matrix to serve quantitative private placement, serving more than 1600 customers with firm offers, contributing more than 9 trillion transaction volume to the company during the year, and further broadening the company’s high-quality asset channels to serve high net worth customers.
Guotai Junan Securities Co.Ltd(601211) new online Daohe app5 Version 0 provides full business chain online services across asset categories to all types of institutional customers, and promotes the reconstruction of a new ecosystem of integrated institutional customer service. Daohe platform has more than 55000 institutional users and 9047 institutional and enterprise customers.
Huatai Securities Co.Ltd(601688) with the self-developed digital platform for institutional customer service “Xingzhi 2.0” as the traction, securities lending, credit analysis and management system (CAMs system) and Incos win-win cloud platform connect all links of institutional services, innovate customer experience, improve service efficiency and promote the continuous extension of customer ecology.
Gf Securities Co.Ltd(000776) multi-level quantitative trading system helped the company speed up the introduction of private placement quantitative and procedural trading customers, and the proportion of the company’s total institutional trading volume and stock based trading volume increased significantly; The self-developed gfqg quantification platform helped Gf Securities Co.Ltd(000776) obtain the highest AA rating of three option varieties in Shanghai and Shenzhen Stock Exchange.
In 2021, Orient Securities Company Limited(600958) also launched the Oriental swift speed trading system. The client supports one terminal to log in multiple accounts, can carry out personalized configuration, and also supports Python quantitative strategy. Based on this, 1669 institutional customers were added in Orient Securities Company Limited(600958) the whole year, with a year-on-year increase of 48%. The asset scale of newly introduced institutional customers reached 53.9 billion yuan, and the asset scale of institutional customers reached 545.7 billion yuan at the end of the period.
In addition, a number of securities firms and investment banks have made breakthroughs in digitalization. The China Merchants Securities Co.Ltd(600999) enterprise customer CRM system supports the online implementation and management of more than 1000 Lingyue enterprises. The intelligent large investment banking business platform supports the issuance of the first batch of public REITs projects, taking the lead in realizing the intelligent analysis of full format bank flow Guotai Junan Securities Co.Ltd(601211) has clearly and systematically put forward the comprehensive digital transformation vision of building a “smart investment bank” for the first time in the industry, and is committed to building the company into a super, math driven, agile and revolutionary technology IB.
Organizational structure adjustment and operation mode optimization are also one of the important actions of financial technology layout planning of securities companies in 2021 China International Capital Corporation Limited(601995) implement the full agile organizational structure of “three tribes and two centers” Chinalin Securities Co.Ltd(002945) also test the “6 + 2” tribal system Upgrade the information technology system of the organization into a financial technology center, and finally upgrade the information technology system to a financial technology center Tianfeng Securities Co.Ltd(601162) announced that the information technology center will be renamed as the financial technology center, and its subordinate institutional system department will be renamed as the institutional Technology Department, the data management department will be renamed as the data finance department, and a new customer and asset analysis platform department will be established.
