Since 2022, the issuance of new funds has been cold, but the funds issued in the settlement mode of securities companies have remained hot. Wind data show that as of May 18, 60 newly established funds have adopted the brokerage settlement mode this year, with a total issued share of 30.585 billion.
The settlement business of securities companies has also become an important starting point for the transformation of wealth management of many securities companies. In the view of insiders, the settlement business of securities companies can effectively promote the cooperative relationship between securities companies and fund companies, and is expected to drive the development of brokerage business and custody business of securities companies.
bond settlement fund issuance heat remains unchanged
The settlement mode of securities companies refers to that securities companies open settlement capital accounts in China, and the products entrust securities companies as brokers to complete the settlement and settlement of funds. Compared with the traditional custodian settlement mode of fund products, the business counterparty of fund companies has changed from banks to securities companies. At the end of 2017, the CSRC issued a document to pilot the settlement mode of securities companies, which was transferred from the pilot to conventional business at the beginning of 2019.
Wind data shows that as of May 18, 60 brokerage settlement funds have been established this year, with a total issued share of 30.585 billion; In the same period last year, only 32 brokerage settlement funds were established. In terms of quantity proportion, the settlement mode fund of newly issued securities companies accounted for 8.23% of the total number of newly issued funds, compared with 4.66% in the same period last year.
On a monthly basis, in January this year, the number of newly established securities clearing funds was 20, with a total issued share of 12.3 billion; March ushered in expansion, during which 25 brokerage settlement funds were established; It decreased significantly in February and April. From May to now, a total of seven new brokerage settlement model funds have been established, of which e fund high-quality growth quantitative selection, CICC Jinxuan wealth held for six months and the enhancement of China EU China Securities 500 index were all established on May 6.
A person from the custody business of a securities firm in Central China said that the outbreak of the settlement mode of securities firms is mainly due to the fact that public funds value the sales ability of securities firms. In the sales process of products adopting the settlement mode of securities firms, the interests of securities firms and fund companies are deeply bound. Securities firms will try their best to ensure the sales volume of funds during the initial period and have considerable sales volume when the market is depressed.
attach importance to the settlement business of securities companies
Since the pilot of brokerage settlement mode at the end of 2017, the newly established brokerage settlement mode funds from 2018 to 2021 are 18, 45, 62 and 145 respectively.
Combing the 2021 annual report of securities companies, it is found that many securities companies regard the settlement business of securities companies as an important starting point for the company to realize the leapfrog development of brokerage business.
Orient Securities Company Limited(600958) said in the annual report of 2021 that the scale of public funds settled by securities companies in 2021 increased by 191.36% over the previous year, showing a good growth trend, providing strong support for the development of the company’s wealth management business.
China Industrial Securities Co.Ltd(601377) also said that in 2021, the settlement business of the company’s securities companies maintained the first mover advantage and the ability of professional trading services was significantly enhanced.
Huaxi Securities Co.Ltd(002926) 2021 annual report shows that in 2021, through the issuance of Dacheng, Boshi and Huaxia bond products, it had a great influence on the market. In particular, the whole day sales of bond products cooperated with Boshi fund in the third quarter reached 3.575 billion yuan, setting the highest record in the company’s sales speed and single day public offering product sales, At the same time, it has created the largest single channel initial subscription scale of securities settlement products in the securities industry in 2021. While increasing the sales revenue of financial products, it effectively helps the company to obtain new customers and the development of institutional brokerage business, and lays a foundation for improving the asset management ability of the company’s own customers in the future.
Everbright Securities Company Limited(601788) previously, in an interview with China Securities Journal, the company said that the consideration of the settlement mode of securities companies is not only the diversification of product income structure, but also the provision of high-quality assets to core customers through “strict selection” in the whole market, so as to achieve win-win cooperation among customers, fund managers and sales channels by expanding product retention and improving customer profit experience, Realize a virtuous circle of business development.
conducive to further development of wealth management business
In the view of insiders, the position of brokerage settlement mode in the fund issuance market has gradually improved, and more and more fund companies begin to choose brokerage settlement mode Northeast Securities Co.Ltd(000686) non bank analyst Wang Fenghua said that bond products meet the long-term development requirements of securities companies and break the trusteeship pattern dominated by banks for a long time. We should seize the opportunity to cooperate deeply with public offering, which is conducive to the further development of wealth management business.
According to Qi Yanran, a Everbright Securities Company Limited(601788) Financial Engineering Analyst, the settlement mode of securities companies is more common in small and medium-sized fund companies at this stage. It is relatively difficult for small and medium-sized funds to obtain marketing support from bank channels. The settlement mode of securities companies can effectively promote the cooperative relationship between securities companies and fund companies, and help small and medium-sized funds to explore the market for new products.
“The promotion of the settlement mode of securities companies will improve the competitive advantage of the public offering custody business of securities companies in the long run, or bring new growth points to the public offering custody business of securities companies, which is expected to drive the development of brokerage business and custody business of securities companies, and promote securities companies to build a one-stop institutional principal broker service of trading, settlement, custody, investment and research and consignment.” Qi Yanran analyzed that, in addition, brokerage custody itself has certain comparative advantages to attract investors’ attention, which is mainly reflected in the consignment ability of index fund products, and it is more convenient for ETF and other floor trading products to use brokerage custody.
