The CSRC solicited opinions on Revising the provisions on overseas listing to promote the steady and healthy development of the capital market. On April 2, in order to support enterprises to list overseas in accordance with the law and regulations and deepen cross-border regulatory cooperation, the CSRC, together with the Ministry of finance, the state security administration and the state archives administration, solicited public opinions on the provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing of domestic enterprises (Draft for comments). There are mainly three changes: first, take the administrative provisions of the State Council, the accounting law and the Certified Public Accountants Law as the upper basis. Second, the scope of application is adjusted to the direct and indirect listing of enterprises abroad. Third, clarify the responsibility of enterprise information security and make the guidance clearer. Fourth, continue to support all kinds of qualified enterprises to list abroad.
The annual report has successively disclosed that the performance of head securities companies is obviously excellent. Last week, Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) , China International Capital Corporation Limited(601995) and other leading securities companies announced their annual reports for 2021. The performance growth is significantly better than that of the industry as a whole and small and medium-sized securities companies. At present, among the securities companies that have published the annual report, Citic Securities Company Limited(600030) and other 9 securities companies have a net profit of more than 10 billion yuan, and Citic Securities Company Limited(600030) is far ahead with 23.1 billion yuan Orient Securities Company Limited(600958) , Founder Securities Co.Ltd(601901) net profit attributable to parent company increased by 97.26% and 66.19% respectively year on year.
The securities industry rose continuously, and allocation opportunities appeared. Since the special meeting held by the financial stability and Development Commission of the State Council on March 16, the confidence of market investors has been stabilized. As one of the sectors with strong correlation with the performance of the secondary market, securities perform better than the market. Over the past ten years, the valuation of the securities industry has fallen rapidly, which is 1.45 times lower than that of the whole industry. With the continuous introduction of favorable policies and the smooth operation of the capital market, the securities industry ushered in allocation opportunities and gave the industry a “optimistic” rating.
Industry data:
(1) wealth management
Secondary market performance: stock market performance: as of April 1, the stock index fell compared with the beginning of the year. The gem index closed down 19.73%, the CSI 500 closed down 13.52%, the CSI 300 index closed down 13.44%, and the SSE 50 closed down 10.11%.
New investors: in February 2022, 1.4146 million new investors were added, with a month on month increase of + 3% and a year-on-year increase of + 6.82%; By the end of February, the number of investors was 200 million, a year-on-year increase of + 10.29%.
Trading volume: the average trading volume of A-Shares fell to trillion for two consecutive Sundays. Last week, the turnover was 4.64 trillion yuan, with an average daily turnover of 0.92 trillion yuan, a month on month increase of – 2.61%.
Two financial services: as of March 31, the balance of two financial services was 1.67 trillion yuan, down from – 8.70% at the end of the previous year. Among them, the balance of financing was 1.58 trillion yuan, up – 7.67% from the end of the previous year, and the balance of securities lending was 92.148 billion yuan, up – 23.30% from the end of the previous year.
Stock pledge business: the number and proportion of Pledged Shares in the market fell month on month. As of April 1, the number of Pledged Shares in the market was 415477 billion shares, down from – 1.04% at the end of the previous year, accounting for 5.52% of the total share capital. The market value of pledge is 3.61 trillion yuan.
(2) investment bank
According to the statistics of the listing date, the total scale of equity financing last week was 24.666 billion yuan, a month on month increase of – 22.44%. Among them, IPO raised 13.42 billion yuan, additional issuance raised 7.644 billion yuan, convertible bonds raised 602 million yuan and exchangeable bonds raised 3 billion yuan.
(3) investment
Bond market performance: as of April 1, China bond – total price (gross value) index closed down 0.21% compared with the beginning of the year.
Commodities: as of March 25, the commodity index closed at 209.92, up 16.2% from the beginning of the year.
Revenue voucher business: in January 2022, securities companies issued 3642 revenue vouchers in total, with a new issuance scale of 109465 billion yuan. Among them, 841 revenue vouchers were issued through the quotation system, with an issuance scale of 40.09 billion yuan; 2801 revenue vouchers were issued through the counter market, with an issuance scale of 69.375 billion yuan. As of the end of the period, the existing scale was 445438 billion yuan.
OTC derivatives business: in January 2022, securities companies carried out OTC financial derivatives transactions, adding an initial nominal principal of 612449 billion yuan; By the end of the period, the total outstanding initial nominal principal of OTC financial derivatives was 2075678 billion yuan. In January 2022, the nominal principal of swap business increased by 329355 billion yuan, a month on month increase of – 24.98%; The new nominal principal of option business was 283094 billion yuan, a month on month increase of – 19.60%.
Risk tips:
The situation in Russia and Ukraine continues to deteriorate; The secondary market fell sharply;
The epidemic situation exceeded expectations; The capital market reform was not as expected.
