Song Qinghui: How To Do A Big Battle For The Big Brokerages?

When the broker made a profit in the first half of 2015, when the brokers' accounts were dried out, they might not have thought of a centralized "liquidation" of the regulators, which is the worst rating in ten years. Including leading brothers, CITIC Securities and many other leading brokerages have been downgraded, and the securities industry seems to have ushered in a fierce storm of reshuffle. The results of the classified rating issued by the China Securities Regulatory Commission can be expressed in the word "harsh". Under the background of the tighter supervision of the SFC, Liu Shiyu, the current chairman of the SFC, paid more attention to the regulation.

The classified rating of the securities market is affecting the market outlook. On the one hand, the stock market fluctuated sharply in 2015, and every securities company lacked the ability to control the risk of the capital leverage business. On the other hand, a large number of large brokerages, including CITIC Securities, GF Securities, Huatai Securities and Haitong Securities, were severely punished by regulators in 2015.

In the absence of stricter ratings, in recent years, there has been no AAA rating in the SFC rating. Therefore, under the background of tighter regulation, AAA class brokerages continue to be missing. Over the past year, the SFC has issued the most stringent documents or measures in history, such as strengthening the examination and approval of backdoor listing and illegal off-site activities. Allocation of funds The intensity of the crackdown, the audit of fixed increase, and the zero tolerance of IPO fraud will naturally reduce the overall rating results of securities companies.

Judging from the penalties for a series of illegal operations, the zero tolerance of IPO financial fraud companies and the rating of the broker, it will naturally not show mercy to the broker's ratings, so that the broker can get a profound lesson. Of course, because the SFC did not announce the specific deducting points and bonus points of various companies, we could not understand the specific reasons for the downgrading of most brokerages.

But on the whole, the downgrading of brokerages will enable more companies to get a higher rating. They may place their business in the second place and put quality first. After all, the higher the rating is, the more they will get in the market. compete Advantages. Therefore, the SFC's classified rating will help the healthy development of the securities industry and promote the healthy competition of the industry, thereby contributing to the healthy development of the capital market, and enable the brokers to better restrain themselves according to high standards and high thresholds.

along with securities company A large scale of downgrades will lead many brokerages to face the pressure of performance. The proportion of investor protection fund paid by securities companies will be increased after the rating is lowered, and net profit will be affected. At the same time, due to the downgrade, the business of securities companies must match their risk management capabilities, and new business or business expansion will be limited. For example, when the credit is affected, the financing and issuance of bonds will be restricted, which will also affect the level of securities companies' business and profits.

Similarly, the impact of downgrading ratings of major brokerages is similar to that of individual securities companies whose ratings have declined significantly. The main factors are the proportion of securities investor protection fund raised, the proportion of venture capital preparations raised, the development of financing business and other businesses, the expansion of new business or business, the difference between the on-site inspection and the off-site inspection frequency. The difference is that the impact of ratings is different. The greater the burden is, the greater the burden on development. The three companies, such as Changjiang Securities, Dongxing securities and Founder Securities, will be the biggest hit.

Similarly, the major brokerages should also strengthen internal supervision, just like what we often call "pig like teammates". The company must strictly enforce all employees, prohibit illegal operations and illegal transactions. In the future, compliance management and risk control will become a top priority for most of the securities companies. The regulatory authorities will also shift from encouraging innovation to strengthening supervision, which will be strengthened from external supervision to internal governance of securities companies.

In short, it is the only way for major brokerages to upgrade their defensive battles according to the rules and regulations. At present, Internet banking is highly developed. Indeed, brokers can design more abundant products to get more user traffic by accessing various interfaces, although it is worth encouraging to develop Internet finance, but this does not mean that Internet finance can be used as an excuse. If the big brokerages still think that they are walking around the edge of law, policy, "law does not prohibit freedom", and still remain lucky, I am afraid they will be deducted by regulators in the future.