The “annual report season” is coming to an end. Among the listed securities companies that have published the annual report, the number of employees of more than 60% of the securities companies increased significantly in 2021. With the deepening of the transformation of wealth management business and the implementation of the comprehensive registration system, the head securities companies have actively “expanded their enrollment”, and the number of investment advisers and insurance agents has increased sharply.
According to the data of China Securities Association, as of December 31, 2021, the number of securities companies had reached 340000. Among them, the number of securities brokers decreased by 9969 in 2021, and the securities brokers of many securities companies have been “cleared”, while the number of investment advisers has increased significantly to 7381, and the number of insurance agents has increased by nearly 1000 to 7407, double that in 2019.
80% increase in the number of employees of securities companies
Data show that among the 29 listed securities companies that have disclosed the 2021 annual report, the total number of employees of 23 securities companies has increased, accounting for 79% of the total number of comparable securities companies, nearly 80%. Among them, 9 securities companies have increased the number of employees by more than 1000, and Guotai Junan Securities Co.Ltd(601211) is the securities company with the largest number of personnel reduction, with a decrease of 1857.
According to front-line sources, because of the transformation of wealth business, these two years are the easiest years for CICC and CITIC. The data shows that China International Capital Corporation Limited(601995) has the largest increase in personnel, with a significant increase of about 45%. The annual report shows that the number of investment banks of the company increased by 609 and wealth management increased by 1860, which are the two fastest expanding departments.
“Brokerage brother” Citic Securities Company Limited(600030) is also recruiting. According to the annual report, by the end of 2021, the total number of Citic Securities Company Limited(600030) employees exceeded 20000, an increase of 24.6% over 2020 Citic Securities Company Limited(600030) did not disclose the personnel changes of each business line in the annual report. It can only be found from the financial report that the number of business personnel increased by 3575, accounting for 76% of the total increase in 2021, followed by risk control, compliance and other departments, with an increase of nearly 800.
The reporter combed the latest data of China Securities Association and found that at present, the largest number of registered investment advisers in the whole industry is Citic Securities Company Limited(600030) , reaching 5209 Citic Securities Company Limited(600030) in 2021, the net income from selling financial products reached 2.655 billion yuan, with a year-on-year increase of 35.11%, ranking first in the industry. In particular, its fund investment advisory business, which has only been online for two months, has contracted customer assets of more than 7 billion yuan by the end of 2021.
In addition, with the continuous promotion of the comprehensive registration system, the number of sponsor representatives continues to rise. According to the latest data of China Securities Association, a total of 7446 recommendation representatives in the whole industry were registered on the job, while the number was only 3806 at the end of 2019. In more than two years, the number of on-the-job representatives nearly doubled.
The increase of sponsor representatives is mainly concentrated in head securities companies. Among the 575 insurance agents increased in the past year, 517 entered the top ten securities companies China International Capital Corporation Limited(601995) has the largest increase in the number of Baodai, reaching 126 China Securities Co.Ltd(601066) securities and Citic Securities Company Limited(600030) increased by 107 and 93 respectively, while Huatai United Securities, Guosen Securities Co.Ltd(002736) , Haitong Securities Company Limited(600837) increased by 49, 42 and 32 respectively.
It is worth mentioning that China Securities Co.Ltd(601066) although 107 sponsor representatives were introduced in 2021, the income of investment banking fell by about 5% in 2021. In terms of its business scale, China Securities Co.Ltd(601066) still ranks second in the whole industry with a business scale of nearly 3.6 billion yuan, second only to Citic Securities Company Limited(600030) .
several brokers “clearing”
With the accelerated transformation of wealth management and the explosive growth of investment advisers, the number of securities brokers has decreased significantly, from 6538400 at the end of 2020 to 554150 at the end of 2021, a decrease of 9969. In 2021, Guosen Securities Co.Ltd(002736) took the lead in “clearing”. At present, the securities brokers of nearly 10 securities companies such as Sino German securities, Huaying securities and Huatai United Securities are also zero.
Among the leading securities firms, Citic Securities Company Limited(600030) of the securities brokers fell to single digits. By the end of 2021, there were 4 securities brokers in Citic Securities Company Limited(600030) , Citic Securities Company Limited(600030) (Shandong) and Citic Securities Company Limited(600030) South China China International Capital Corporation Limited(601995) the number of securities brokers also fell to 184 from 243 in the third quarter of last year.
CICC wealth related people said that brokers take personal marketing as the main exhibition mode, and they also lack advantages in comparison with online customers. In the case of a sharp decline in commission, the commission income of brokers generally decreases, and brokers themselves also have the need and motivation for transformation.
At present, Haitong Securities Company Limited(600837) , with about 2672 brokers, is still the largest number of brokers, a decrease of nearly 50% compared with the end of 2020.
In addition, as the core force of self operation and asset management of securities companies, the loss of investment sponsors also makes the head securities companies helpless. According to the data of China Securities Association, the number of practitioners in the whole industry is only 1095, a decrease of 262 compared with the same period last year. Among them, China International Capital Corporation Limited(601995) decreased from 52 to 38, Guangfa asset management decreased from 54 to 44, and Shenwan Hongyuan Group Co.Ltd(000166) decreased from 69 to 60.
It is understood that the investment sponsor is mainly subordinate to the asset management department of securities companies and is mainly responsible for undertaking asset management projects, similar to the post of public fund manager. In recent years, many investment sponsors of securities companies have “gone private”. In this regard, the person in charge of asset management business and wealth management business of Beijing Yishang believes that this has little impact on the overall securities companies, because from the perspective of the whole industry, the revenue of asset management business accounts for a relatively small proportion of the overall revenue. Under the grasp of wealth management, securities companies must not only rely on their own asset management products, but also “purchase” excellent financial products in the whole market to serve customers.
