With the release of the annual reports of listed securities companies, the information management business transcripts of securities companies are also disclosed. From 2022, the transition period of new information management regulations officially ends. For securities companies, it is also an important year to verify the effectiveness of their information management business transformation.
According to the observation of Nanfang finance and economics all media reporter, from the perspective of management scale, the overall scale of asset management of securities companies decreased, but the growth of head securities companies last year was obvious, and the head effect continued to increase. Specifically, for some asset management companies of securities companies, their profitability performance was somewhat unsatisfactory.
Summarize the reasons or related to the market situation. Since the second half of last year, the performance of the stock market and bond market has fluctuated greatly, the overall market has fluctuated downward, many fund products have retreated greatly, and it is difficult for the asset management of securities companies to be alone.
A securities firm asset management source told reporters, “the overall scale of asset management has continued to decline after the implementation of the new regulations. In addition, the recent volatility of the stock and bond market has also had a great impact on the profitability of the asset management industry. At present, in the market, fixed income and cash management products have relatively strong risk aversion properties and are easy to obtain capital favor.”
asset management of 6 leading securities companies contributed 70% of the revenue
In 2021, the transition period of the new asset management regulations entered the last year, the industry supervision was developing towards normalization, and the business model of the asset management institutions of securities companies was changing.
The reporter combed the asset management business of 30 listed securities companies and found that the trend of gathering to head institutions in the past year was obvious. In terms of management scale, among the top ten securities companies in the industry, Citic Securities Company Limited(600030) , Boc International (China) Co.Ltd(601696) , Gf Securities Co.Ltd(000776) , Everbright Securities Company Limited(601788) and 60.39% year-on-year growth rate reached 18.98%, 47.54%, 62.26% and 60.39%.
Citic Securities Company Limited(600030) in the case of ranking first in the industry, the scale of assets under management can grow to 1.63 trillion yuan, twice as high as Boc International (China) Co.Ltd(601696) in the second place. According to the data released by the China Securities Association, at the end of 2021, the asset management business scale of the securities industry was 10.88 trillion yuan, a slight increase of 3.53% year-on-year. In contrast, the growth rate of the asset management scale of the above four securities companies far exceeded the industry average.
At present, the management scale of the top ten securities companies basically exceeds 3000 trillion, but some leading securities companies have experienced a decline in management scale, such as Huatai Securities Co.Ltd(601688) , China Merchants Securities Co.Ltd(600999) , China Securities Co.Ltd(601066) with a decline of more than 10%, and Guotai Junan Securities Co.Ltd(601211) with a maximum decline of 26.93%.
The lower ranked small and medium-sized securities companies have a more obvious decline. At present, among the listed securities companies that have disclosed their annual reports, the only 16 securities companies outside the top 10 in asset management are Guolian Securities Co.Ltd(601456) , China Industrial Securities Co.Ltd(601377) , Northeast Securities Co.Ltd(000686) 3, which have achieved positive growth, while the remaining 13 show a downward trend, ranging from 1% to 50%. For example, the revenue of Chinalin Securities Co.Ltd(002945) asset management business fell by more than 40%, and the revenue was less than 30 million yuan.
On the whole, the Matthew effect of HENGQIANG, the strong asset management business of securities companies, is prominent, and there is great pressure on the transformation of small and medium-sized securities companies.
Some financial institution analysts pointed out that, “The reasons for the strengthening of the head effect of the asset management industry of securities companies are: first, in the process of public offering transformation, head institutions with public offering licenses and promoting rapid transformation have obvious advantages; the other is the gap in investment and research capacity. In the past, asset management institutions mainly focused on channel business, so some institutions may ignore the construction of investment and research capacity, but now head institutions have formed a moat with strong investment and research capacity.”
From the performance of this business, the performance of the business performance shows that among the 30 listed brokers that have disclosed annual reports, among the 30 listed brokers that have disclosed annual reports, 60 Zuming Bean Products Co.Ltd(003030) theproportion reached 70%.
However, in terms of profit performance, there was an obvious situation of “increasing income without increasing profit” in the asset management of securities companies last year. According to statistics, the average growth rate of revenue of asset management of 30 listed securities companies was 25.5%, while the average growth rate of net profit was 12.2%.
For example, Gf Securities Co.Ltd(000776) recorded the revenue of asset management business of RMB 12.663 billion, with a year-on-year increase of 21.35%, while the net profit was RMB 6.206 billion, with a year-on-year increase of only 6.18%. According to the annual report, Gf Securities Co.Ltd(000776) investment management business includes GF asset management, public funds and private funds, as well as futures asset management and overseas asset management.
As for asset management companies, GF asset management recorded a revenue of 759 million yuan last year, a year-on-year decrease of 56.15%, and a net profit of 200 million yuan, a year-on-year decrease of 78.35%, mainly due to the decrease of asset management fee income and the increase of fair value change loss.
Although most of the asset management of leading securities companies recorded positive growth, the performance of asset management businesses such as Huatai Securities Co.Ltd(601688) , Guotai Junan Securities Co.Ltd(601211) securities and Everbright Securities Company Limited(601788) was not satisfactory. Of which Huatai Securities Co.Ltd(601688) recorded a revenue of 4.386 billion yuan, a year-on-year decrease of 30.76%, and a net profit of 3.419 billion yuan, a year-on-year decrease of 31.41%.
Guotai Junan Securities Co.Ltd(601211) securities recorded a revenue of 2.162 billion yuan, a year-on-year decrease of 21.98%, and a net profit of 1.212 billion yuan, a year-on-year decrease of 29.49% Everbright Securities Company Limited(601788) recorded a revenue of 1.987 billion yuan, a year-on-year decrease of 13.20%; Recorded a net profit of 1.146 billion yuan, a year-on-year decrease of 10.37%.
It is worth noting that the large asset management income of securities companies also includes part of the income of their public fund companies, which makes a great contribution to the growth of asset management business.
For example, in 2021, GF realized an operating income of 9.346 billion yuan, which made a great contribution to the asset management income of Gf Securities Co.Ltd(000776) Citic Securities Company Limited(600030) holds 62.2% of Huaxia Fund. In 2021, Huaxia Fund achieved an operating revenue of 8.015 billion yuan, an increase of 45% year-on-year, which also led to a significant increase in Citic Securities Company Limited(600030) asset management business revenue.
Dai Zhifeng, director of Zhongtai Securities Co.Ltd(600918) Research Institute, pointed out that “the contribution of fund business income in the asset management business of securities companies has increased significantly, and the consolidated fund ability can even influence the asset management strength of securities companies to a certain extent.”
According to its statistics on the asset management business data of 27 listed securities companies, the total net income was 55.21 billion yuan, with a year-on-year increase of 29.5%, of which the fund management business income was 29.09 billion yuan, with a year-on-year increase of 43%. The growth rate of the consolidated statement or fund management business income of its fund companies was significantly faster, and its contribution to the large asset management income reached 52.7%, an increase of 5 percentage points over last year.
market turbulence and challenges in asset management transformation
Since the second half of last year, the performance of the stock market and bond market has fluctuated greatly, many fund products have retreated greatly, and it is difficult for the asset management of securities companies to be alone.
According to the incomplete statistics of wind data, since this year, among the 2870 securities companies’ collective financial products (including stocks, hybrid, bonds, money market, etc.) with data disclosure, 1139 products have lost revenue, accounting for nearly 40%. Among them, the loss proportion of No. 3 of China Merchants Zhiyuan new third board is as high as 71%, and there are 24 securities companies’ collective financial products with a loss of more than 25%.
In addition to the turbulence of the market, the asset management of securities companies also need to face the competition within the industry and the impact of external institutions.
An asset manager of a medium-sized securities firm pointed out that, “When the market is cold, the competition of asset management of securities companies has become more intense. In recent two years, asset management of securities companies have competed at the strategic level. For example, some technological innovation promotes the Internet, some develop special asset management of securities companies that are suitable for different sub markets according to market segmentation and diversified market needs, and become the focus of some ecosystems, and some attract external talents to strengthen investment and research capabilities.”
In addition, with the end of the transition period of new regulations on asset management, the transformation of asset management public offering of securities companies has entered a new growth period.
According to wind data, by the end of December 2021, 140 large-scale collection products of securities dealers had completed public offering transformation, of which 96 had completed transformation in 2021, an increase of 159.46% over the whole year of 2020.
However, the reform of public offering is a long-term process, which can not be completed overnight. Some financial institution analysts pointed out that, “When securities companies carry out public offering transformation, product transformation is only the first step, and the subsequent public offering investment team and research team need to be equipped. After all, the investment logic and thinking of securities companies’ asset management and expanding collection products and public offering transformation products are very different. In this regard, large securities companies have more advantages than small and medium-sized securities companies to a certain extent, and relying on more advanced and matching it systems, investment team and investment research team are important guarantees for product quality 。”
One of the key points of public offering transformation of securities companies is to obtain public offering licenses, which is also the main purpose of establishing asset management companies.
Western Securities Co.Ltd(002673) non bank analyst Luo zuihui mentioned that at present, the development of asset management of securities companies has entered a new stage. By splitting the income structure of asset management business of securities companies at the top, it can be found that fund management business is the core driver of income growth. “Participating in and holding public funds has become the core reason for the differentiation of asset management business income of securities companies, and seeking public fund license has become the focus of the transformation of asset management companies of securities companies.”
From the perspective of market scale, the scale of asset management business of securities companies may enter a stable period after a slight decline, and is expected to rise rapidly with a trend higher than the average growth rate of the industry in the future.
