Hengtai Securities Is Expected To Transform The Tianzi Securities Company, Or The "Three Sons" Territory.

Tianfeng securities's acquisition of Hengtai securities is more detailed or in the process of brewing.

In July of this year, the purchase of Tianfeng securities price 4 billion 500 million yuan to Hengtai securities has been approved by the shareholders' meeting. It will buy 781 million domestic stocks of Hengtai securities from 9 enterprises such as Beijing Qingyun intercontinental Technology Co., Ltd., and will hold 29.99% of Hengtai securities after the completion of the acquisition.

According to the exclusive report of the twenty-first Century economic news reporter, Tianfeng securities is expected to further seek control of Hengtai securities, and adjust the business of Tianfeng securities and Hengtai securities in line with regulatory requirements. According to the current research plan, the final fate of Hengtai securities may become a subsidiary company of Tianfeng securities, while Hengtai long finance securities will become a subsidiary of Tianfeng securities investment bank, and will also receive the Xinhua fund's public offering business license indirectly through Hengtai securities.

In the industry view, once the implementation of this initiative, it is likely to further strengthen the scale effect of Tianfeng securities, prompting Tianfeng securities to launch a sprint to the status of the head broker.

Integration is at hand

In the earliest disclosure of Tianfeng securities, it was said that the acquisition of 29.99% stake in Hengtai securities "does not involve control rights". But according to the twenty-first Century economic news reporter, from the close proximity of Tianfeng securities, the company learned exclusively that Tianfeng securities is seeking further control of Hengtai securities.

Reporters learned that in the brewing of the real control plan, the Tianfeng securities program completed the acquisition and control of Hengtai securities and merged it into a subsidiary company.

"Tianfeng securities is expected to further seek control over Hengtai securities and further integrate Hengtai securities into a professional asset management company." The above close to Tianfeng securities sources said, "if we go in this direction, the future wind will link the original business of Hengtai securities into the" Tianfeng ", and infuse Tianfeng's information management business to Hengtai securities.

In fact, the independent development of information management business through the establishment of a subsidiary company has become a major trend in the securities industry. Reporters do not fully count that at present there are at least 14 brokerages owned by Guotai Junan, Haitong, merchants, Huatai, Guangda, Xingye, Bohai, Guangfa, galaxy, Zhongtai, Finance and communications, Orient, Guo Sheng, Changjiang and so on.

Tianfeng itself had similar ideas. At the end of last year, Tianfeng securities also announced that it was preparing to set up "Tianfeng Securities Asset Management Co., Ltd.", with a total planned contribution of 500 million yuan, but the matter was not followed.

In November 13th, the reporter called Tianfeng securities related people to inquire about the preparatory progress of Zi Guanzi company. The other side said, "it is not clear enough. We only know that our company has a Shanghai branch."

Those close to Tianfeng securities believe that the feasibility of integrating Hengtai securities into a subsidiary company is also due to the Xinhua fund, which is owned by Hengtai securities.

"Another reason for becoming a subsidiary company is that Hengtai securities itself is the controlling shareholder of Xinhua fund." A person close to Tianfeng securities revealed. "This is a public offering licence."

Industrial and commercial information shows that in 2004, there were 44 new products of Xinhua fund. The total assets of the Xinhua fund amounted to 21 billion 600 million yuan, of which Hengtai securities held 58.62% of its shares. Other shares were held by Xinhua trust and Hangzhou Yong yuan Network Technology Co., Ltd., holding 35.31% and 6.07% respectively.

"If Tianfeng securities gets further control of Hengtai securities, it will also form indirect holdings on Xinhua fund, so that Tianfeng securities does not need to re apply for public offering licences on the one hand. At the same time, it does not need to prepare for the matter of subsidiary companies anymore, because these two licenses are for examination and approval." The above close to Tianfeng Securities said.

For Hengtai securities in the future is likely to be integrated into Tianfeng securities asset management company, Tianfeng securities responded that it did not understand. "This is not very clear, beyond our understanding of the business scope." The above Tianfeng securities people admitted.

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Tianfeng securities's current information management business has a small scale.

Wind data show that Tianfeng securities's latest asset management net scale is 53 billion 733 million yuan, ranking fifteenth in the industry, while Hengtai securities's information management scale is only 1 billion 756 million yuan, and the total size of the two plus will reach 55 billion 489 million yuan, and its upgrading role in the industry is relatively limited.

However, in the industry view, the plan to prepare subsidiaries is still related to providing more independent and efficient governance structure for information management business.

"The advantage of independent subsidiaries in information management business is to further isolate risks from their parent companies, and to make them more efficient in business decisions, as well as to bring management incentives to equity." A securities broker in Shanghai said frankly.

It is worth mentioning that Hengtai securities also has an investment bank subsidiary Hengtai fortune. The above close to Tianfeng securities sources revealed that, while completing the integration of Hengtai securities, we did not rule out the transformation of Hengtai long fortune into a subsidiary of Tianfeng's investment bank. "Hengtai long money is actually a securities licence of Hengtai, which will become a subsidiary of Tianfeng investment bank in the future."

This also means that if Tianfeng securities completes the acquisition of Hengtai securities, it will directly or indirectly control Hengtai securities (Information Management), Hengtai long fortune (investment bank) and Xinhua Fund (public offering) three professional subsidiaries in the way of parent company, thus forming a new business version of the graphic Bureau.

In the industry view, once Tianfeng completes the merger and acquisition of Hengtai securities, its scale will expand further and challenge the position of the head broker.

According to China daily data, the net assets and total assets of Tianfeng securities were 17 billion 832 million yuan and 56 billion 725 million yuan respectively, and the net assets and total assets of Hengtai securities were 10 billion 436 million yuan and 31 billion 378 million yuan respectively. The net capital of the two brokerages was 9 billion 273 million yuan and 6 billion 249 million yuan respectively.

If the integration is completed, the total net assets and total assets of the two brokerages will reach 28 billion 268 million yuan and 88 billion 103 million yuan respectively, while the net capital will reach 15 billion 522 million yuan, and the capital strength of Tianfeng securities will further rise from the 37 place in the industry to 23.

In the eyes of the industry, with the strengthening of Matthew effect in the market, similar merger and consolidation of securities industry will continue further, and this way will also promote some institutions to start from medium scale to head position.

"In the face of fierce competition, leading securities companies have an increasingly prominent position in investment banking or brokerage business. If the two waist brokerages integrate and merge, it is possible to create a new head, bringing the effect of 1+1 greater than 2. So there may be more and more mergers and acquisitions in the future. A non banking financial analyst in a medium-sized brokerage in Beijing said.