Recently, Caitong Securities Co.Ltd(601108) released the announcement on the results of allotment and issuance, which showed that the total amount of effective subscription funds reached 7.172 billion yuan. The reporter of daily economic news combed the refinancing situation of securities companies this year and found that at present, including Caitong Securities Co.Ltd(601108) and Citic Securities Company Limited(600030) and Galaxy Securities have also been refinanced successively, with a total scale of 42.3 billion yuan. Meanwhile, since March, the refinancing applications of Orient Securities Company Limited(600958) , Sinolink Securities Co.Ltd(600109) , China Greatwall Securities Co.Ltd(002939) and Zheshang Securities Co.Ltd(601878) have also been approved by the CSRC, and the issuance is imminent.
The reporter noted that in the securities industry with frequent “blood replenishment” actions, the financing of share allotment has gradually increased. Since June last year, the share allotment of 54.5 billion yuan has been completed by five securities companies. Since October last year, there have been no securities companies that have refinanced by fixed increase. In addition, combing the refinancing purposes of securities companies in recent years, we can also find that capital intermediary business has become an important investment field.
This year, 42.3 billion yuan has been refinanced by securities companies
Since the beginning of this year, there has been a continuous stream of news that securities companies have raised funds through the “troika” of fixed growth, allotment of shares and convertible bonds. In February this year, Citic Securities Company Limited(600030) completed A-share allotment financing of 22.396 billion yuan, setting a new high in the scale of allotment financing in the A-share securities industry. Then Citic Securities Company Limited(600030) successfully completed the financing of H-share allotment of HK $6.04 billion (equivalent to about RMB 4.93 billion) in March, and the total financing scale of a + H-share allotment reached 27.33 billion yuan.
At the end of March this year, Galaxy Securities released the results of convertible bond issuance with a scale of 7.8 billion yuan. Similarly, at the end of March this year, Caitong Securities Co.Ltd(601108) launched the issuance of allotment shares, and announced the issuance results of allotment shares on April 12. The actual amount of funds raised reached 7.172 billion yuan.
Therefore, the total refinancing scale of securities companies that have been completed this year has reached 42.3 billion yuan. At the same time, the reporter noted that since this year, the refinancing of securities companies with a scale of about 38.3 billion yuan has been approved by the CSRC, and the issuance will be completed soon.
On March 18 this year, Orient Securities Company Limited(600958) announced that the application for A-share allotment was approved by the CSRC. In February this year, Orient Securities Company Limited(600958) H-share allotment application was first approved by the CSRC. The financing scale of Orient Securities Company Limited(600958) H-share allotment is expected to reach 16.8 billion yuan. Similarly, on March 18, Sinolink Securities Co.Ltd(600109) announced that the non-public offering was approved by the CSRC, and the fixed increase is expected to reach 6 billion yuan. On April 13, China Greatwall Securities Co.Ltd(002939) announced that the non-public offering was approved by the CSRC, and the scale of this fixed increase is expected to reach 8.464 billion yuan. On April 13, Zheshang Securities Co.Ltd(601878) announced that the issuance of convertible bonds was approved by the CSRC, and the expected scale of the issuance of convertible bonds is up to 7 billion yuan.
So it seems that the refinancing scale of securities companies this year may exceed 2021, but the scale is still less than 2020. Data statistics show that in 2020 (calculated according to the listing date), a total of 18 securities companies (excluding the sample of issuing shares to buy assets, the same below) completed refinancing, and the actual financing scale reached 118.4 billion yuan; In 2021, a total of 10 securities companies completed refinancing, with an actual financing scale of 65.6 billion yuan.
Share allotment financing has gradually increased
The reporter further found that among the 31 refinancing projects of securities companies that have been implemented since 2020, there are 14 fixed growth, 11 allotments and 6 convertible bonds respectively. Fixed increase financing seems to be the most mainstream refinancing method of securities companies. In particular, securities companies completed up to 8 fixed increase financing in 2020, which is inseparable from the introduction of new refinancing regulations in February 2020.
However, the reporter found that since Dongxing Securities Corporation Limited(601198) completed the fixed increase in October 2021, there has been no new agreed increase in bonds so far. At the same time, the reporter also noted that in 2021, a total of six securities companies completed fixed growth financing, and the actual financing scale was 29.804 billion yuan, nearly 40% smaller than the expected financing scale. For example, the increase of Zheshang Securities Co.Ltd(601878) , which is scheduled to be completed in May 2021, is expected to raise 10 billion yuan, but only 2.805 billion yuan is actually raised; The same is true for the Xiangcai Co.Ltd(600095) fixed increase completed in July 2021. It is expected to raise 4.7 billion yuan, but only 1.737 billion yuan will be raised in the end.
In this regard, some brokerage analysts said that in the past two years, the non bank sector continued to callback, and the market sentiment was low, which affected the enthusiasm of institutions to participate in the fixed growth of securities companies, resulting in the reduction of the fixed growth scale. At the same time, the trend of securities companies’ stocks is sluggish, which is also easy to cause institutions to be covered after participating in fixed growth.
Since the second half of last year, more and more securities companies have completed refinancing by means of allotment. Since June 2021, Huaan Securities Co.Ltd(600909) , Hongta Securities Co.Ltd(601236) , Soochow Securities Co.Ltd(601555) , Citic Securities Company Limited(600030) and Caitong Securities Co.Ltd(601108) have successively completed allotment, with a total actual fund-raising of 54.5 billion yuan China Industrial Securities Co.Ltd(601377) research and analysis show that the allotment of shares has been widely favored by securities companies in recent years, mainly because it is relatively low in difficulty, relatively fast in speed and relatively controllable in issuing price compared with fixed increase and convertible bonds.
At present, there are relatively few securities companies using convertible bond financing, mainly due to relatively strict restrictions China Industrial Securities Co.Ltd(601377) research and analysis show that the public issuance of convertible bonds needs to meet the six core conditions of continuous profit, operating profit, cash dividend, roe, bond balance and distributable profit. Among them, the use of subordinated bonds and roe in bonds payable are the key conditions restricting listed securities companies from issuing convertible bonds.
Capital intermediary business has become the main investment direction of refinancing of securities companies
The reporter further combed the refinancing purpose of securities companies and found that, different from the previous fund-raising investment focusing on financing business, stock pledge and directional self operation, capital intermediary business has become an important investment direction of “blood replenishing” refinancing of securities companies.
Taking the refinancing of securities companies that landed this year as an example, Citic Securities Company Limited(600030) plans to raise 28 billion yuan through share allotment, of which no more than 19 billion yuan is used to develop capital intermediary business; Galaxy Securities plans to launch 7.8 billion convertible bonds, of which no more than 3 billion yuan is used for capital intermediary business Caitong Securities Co.Ltd(601108) plans to raise 8 billion yuan through share allotment, of which no more than 2 billion yuan will develop capital intermediary business.
Capital intermediary business is a kind of business that securities companies use their own balance sheet to meet customers’ investment and financing needs through product design, including but not limited to margin trading, stock pledge, income swap, equity derivatives, bulk commodity derivatives, market making transactions, cross-border transactions and other businesses. In addition, capital intermediary business can also produce synergy with other businesses such as wealth management, which has gradually become one of the key development directions of securities companies’ heavy asset business.
However, capital intermediary business is a capital consuming business, and its business scale and profitability depend on a relatively stable long-term capital supply. Caitong Securities Co.Ltd(601108) just released the results of the allotment, said: “the type and scale of the company’s capital intermediary business are still a certain distance from leading securities companies. The company plans to use no more than 2 billion yuan of the raised funds to develop the capital intermediary business, continue to cultivate the needs of customers, steadily develop the financing and securities lending business, and actively explore new capital intermediary business.”
Tianfeng Securities Co.Ltd(601162) research shows that the business of securities companies tends to be institutionalized and capitalized, and the capital intermediary business based on institutional trading has become an important driving force for securities companies to expand their statements. Since 2019, with the deepening of capital market reform and the improvement of market institutionalization, the capital intermediary business of securities companies has grown rapidly, which has promoted the significant growth of trading assets of head securities companies and become the driving force for the asset growth and asset structure differentiation of head securities companies.
