In recent years, proprietary business has become one of the most important sources of income for securities companies. At present, the annual reports of listed securities companies in 2021 are being disclosed one after another. The total proprietary business income of 26 listed securities companies accounts for nearly 30% of the total income. Facing the changeable market environment, the income from self operated business has become the “watershed” of performance differentiation among many securities companies.
self operated income continues to differentiate
In recent years, the investment of securities companies is changing to the direction of de directionalization and increasing diversified transactions. The overall investment strategy is more mature and stable, and the market competitiveness is increasing day by day. At present, 26 listed securities companies that have disclosed their annual reports have achieved a total operating revenue of 533937 billion yuan, a year-on-year increase of 23.28%; Among them, the total income from self operated business was 146176 billion yuan, a year-on-year increase of 18.61%; So far, the self operated business income of 26 securities companies accounted for 27.38% of the total operating income.
The reporter of securities daily used the data of “net investment income + net income from changes in fair value + changes in fair value of available for sale financial assets” to investigate the strength of self operated business of various securities companies. The data show that among the 26 listed securities companies that disclosed the annual report of 2021, Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) , Huatai Securities Co.Ltd(601688) , Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) the self operated business income in 2021 exceeded 10 billion yuan.
However, due to the influence of investment varieties, investment strategies, allocation concepts and business development differences, the Income Differentiation of self operated business of securities companies is intensifying. Among the 26 listed securities companies, 15 achieved year-on-year growth in self operated business income, and 11 showed year-on-year decline, accounting for more than 40% Guolian Securities Co.Ltd(601456) , Guoyuan Securities Company Limited(000728) ‘s self operated business performed well, with revenue of 1.597 billion yuan and 1.64 billion yuan respectively, with a year-on-year increase of 141.32% and 107.88% Central China Securities Co.Ltd(601375) , China Galaxy Securities Co.Ltd(601881) , Shenwan Hongyuan Group Co.Ltd(000166) , Zhongtai Securities Co.Ltd(600918) , and Zhongtai Securities Co.Ltd(600918) ‘s proprietary business income increased by more than 50% year-on-year, with growth rates of 99.29%, 70.29%, 67.94% and 53.01% respectively. In addition, Chinalin Securities Co.Ltd(002945) proprietary business income decreased by more than 80% year-on-year, mainly due to the decrease in the profit of equity proprietary business and the fluctuation of the fair value of proprietary business; While Everbright Securities Company Limited(601788) ‘s investment and trading business cluster lost 400 million yuan, of which the equity proprietary investment business was affected by the market decline and failed to achieve the expected income.
At present, self operated securities companies mainly include equity investment, fixed income investment, OTC market making and many other businesses. The increase or decrease of income cannot be simply linked to “stock speculation”. Li Xing, chief market analyst of YueKai Securities Research Institute, said in an interview with Securities Daily: “In the future, self operated investment income may become an important factor affecting the performance differentiation of securities companies. Securities companies with strong investment ability and high level of risk control are expected to stand out. Self operated securities companies can also develop derivatives trading business, balance the impact of income volatility caused by directional investment, and promote the long-term and steady development of self operated investment business of securities companies.”
exposure of heavy positions
With the intensive disclosure of 2021 annual reports by listed companies, heavy positions of securities companies also surfaced. According to statistics, as of the press time of the reporter, among the listed companies that have disclosed the annual report of 2021, there are 20 securities companies in the list of 142 top 10 circulating stock shareholders (repeated individual stock superposition calculation due to different holding institutions, the same below), with a total position of 1.226 billion shares and a market value of about 22.617 billion yuan. By the end of the fourth quarter of last year, 85 stocks had been newly acquired by securities companies, with an increase of 20 and a decrease of 27, and the position of another 10 had not changed.
In terms of new stocks (sorted by market value of positions), Guotai Junan Securities Co.Ltd(601211) new stocks hold Advanced Micro-Fabrication Equipment Inc.China(688012) 5747100 shares, ranking first, with market value of positions of about 728 million yuan Citic Securities Company Limited(600030) Xinjin holds Chongqing Brewery Co.Ltd(600132) 2157800 shares, followed by a market value of about 327 million yuan. While Huaan Securities Co.Ltd(600909) Xinjin holds Zheshang Securities Co.Ltd(601878) 18767500 shares, with a market value of about 247 million yuan. Dizhe pharmaceutical-u is also newly held by three securities companies Huatai Securities Co.Ltd(601688) , CICC fortune and Citic Securities Company Limited(600030) with 118500 shares, 171400 shares and 237400 shares respectively.
In terms of shareholding increase, China Securities Co.Ltd(601066) respectively increased The People’S Insurance Company (Group) Of China Limited(601319) 3673900 shares, Cecep Wind-Power Corporation(601016) 167800 shares, Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) 86600 shares, Sihui Fuji Electronics Technology Co.Ltd(300852) 11000 shares Huatai Securities Co.Ltd(601688) respectively increased Cmst Development Co.Ltd(600787) 1694600 shares, Kpc Pharmaceuticals Inc(600422) 881000 shares, Xinjiang Zhongtai Chenical Co.Ltd(002092) 501700 shares, Hainan Haiqi Transportation Group Co.Ltd(603069) 213400 shares, Beijing Longruan Technologies Inc(688078) 113400 shares, Jiangsu Lianyungang Port Co.Ltd(601008) 9000 shares Haitong Securities Company Limited(600837) respectively increased Shanghai Belling Corp.Ltd(600171) 000 shares, Heilongjiang Agriculture Company Limited(600598) 38300 shares, Bomesc Offshore Engineering Company Limited(603727) 20000 shares China International Capital Corporation Limited(601995) respectively increased Hunan Oil Pump Co.Ltd(603319) 369100 shares and Dymatic Chemicals Inc(002054) 0700 shares Citic Securities Company Limited(600030) respectively increased Baoding Technology Co.Ltd(002552) 17500 shares and Ningbo Zhenyu Technology Co.Ltd(300953) 02100 shares; In addition, Orient Securities Company Limited(600958) increased Pingdingshan Tianan Coal Mining Co.Ltd(601666) 201 million shares, Shenwan Hongyuan Group Co.Ltd(000166) increased Citic Press Corporation(300788) 370000 shares, China Merchants Securities Co.Ltd(600999) increased Mayinglong Pharmaceutical Group Co.Ltd(600993) 180600 shares. In terms of reduction, Huatai Securities Co.Ltd(601688) reduced 60 Anhui Sinonet & Xinlong Science & Technology Co.Ltd(002298) 81300 shares.
From the perspective of the number of heavy positions held by securities companies, at present, Huatai Securities Co.Ltd(601688) heavy positions have the largest number of shares, 52, holding 125 million shares in total, and the market value of positions is about 999 million yuan Citic Securities Company Limited(600030) followed, with 25 heavy positions, holding 495 million shares in total, but the market value of its position is as high as about 13.922 billion yuan.
