Billions Of Dollars Of Financing Industry "Hands And Hands": Left Hand Financing Surging "Supplementary Bullet" Right Assets Impairment Value Busy Mention

The financing of securities firms is surging.

This year, the securities industry has completed 4 equity financing projects, involving a total scale of RMB 29 billion 75 million yuan. They are 1 billion 521 million of IPO of CITIC Securities, 13 billion 460 million of CITIC Securities 13 billion 460 million, 3 billion 994 million of rights and shares of CF, 7 billion 300 million of convertible bonds of Eastern fortune, and 2 billion 800 million yuan of convertible bonds issued by Huaan securities.

In terms of debt financing, this year, the scale of financial bonds and short margin financing of securities companies has reached 351 billion 500 million yuan. Specifically, the securities industry has issued 65 corporate bonds and the total scale of financing is RMB 144 billion 500 million yuan. A total of 75 short selling bonds have been issued. The total scale of financing is RMB 207 billion yuan, which has reached the peak in the past 5 years.

In twenty-first Century, economic news reporters found that debt financing, especially short term financing coupons, was the main intermediary business of securities firms. That is, margin trading, stock pledge repurchase, stock return swaps, fixed income and other businesses. Securities firms are adding "bullets" to their own credit business through hundreds of billions of capital.

Echoing the flow of funds is the adjustment of the new securities law, which increases the convenience of securities business. The new securities law stipulates that since March 1st, some administrative examination and approval items of securities companies have been canceled or adjusted, and the subsequent management and convergence of relevant items cancelled or adjusted shall be carried out in a new way.

Among them, the "securities companies to provide securities lending and lending services for customers to buy and sell securities approval", into the securities company's business scope approval. The adjustment of the examination and approval system has been interpreted by the industry as an increase in the convenience of credit business.

However, on the other side of refinancing, replenishing ammunition and regulatory convenience, many brokerages in the real exhibition industry have "cut blood" on credit business.

6 billion 100 million impairment of credit business

Since 2019, 20 securities brokers have disclosed their own information on asset impairment. In the time interval required to disclose, the total amount of assets impairment of the 20 brokerages amounted to RMB 8 billion 881 million yuan, of which, the credit business involved a reduction of RMB 6 billion 192 million yuan.

And in the statistics of 20 brokerages, according to performance pre disclosure, in 2019 1-12 months without audit net profit totaled 23 billion 392 million yuan. This means that the total assets impairment of the securities companies accounted for 37.97% of net profit, and the total value of credit business impairment accounted for 26.47%.

In this regard, information disclosure professionals explained that according to the rules of information disclosure, the listed company's assets impairment should exceed 10% of the audited net profit of the previous year. For example, the main board and the gem of the Shenzhen stock market clearly stipulate that the impact of the assets impairment or loss of the listed company on the company's current profits and losses will account for more than 10% of the audited net profit of the company in the latest fiscal year and the absolute amount exceeds 1 million yuan.

However, the above 20 brokerages' assets impairment accounts for the annual net profit ratio, far exceeding 10%. The ratio of many brokerages is staggering.

For example, Jianghai securities has a total annual profit of 439 million yuan, a net profit of 189 million yuan, and an impairment of assets account for 232.38% of the annual net profit. Jianghai securities has stepped up its business in credit business, including "ST Herme", "Tian Guang Zhong Mao", "Honggao creative", "Yu Heng pharmaceutical", "Tianxia wisdom" and other companies.

The state securities accounts for 434 million yuan a year, with a net profit of 393 million yuan, and the impairment of assets accounts for 110.23% of the annual net profit. However, Guo Hai securities did not disclose details of the trampling project, but its losses in 2017 involving 500 million yuan, involving 516 million yuan in 2016 and 399 million yuan in 2016, caused the loss of assets in the first half, third quarter, and fourth quarter of this year.

The highest total amount in statistics is Everbright Securities. In 2019, the total assets impairment amount was 3 billion 8 million yuan, while the unaudited net profit for the whole year was 3 billion 322 million yuan, accounting for 90.54%.

Everbright Securities raised the total amount of the highest is the subsidiary of Everbright capital related to MPS project impairment, but its credit and debt business has also toured "ST Hua Xin", "17 Kangmei MTN003", "ST new sea", "17 God 01" and other well-known minefields products, also worthy of attention.

In addition, the total amount of Guangzhou securities and Huaxin securities was 287 million yuan and 7 million 50 thousand yuan respectively, and the two brokerages lost 280 million yuan and 1 million 400 thousand yuan respectively in the whole year's profits.

The above believes that the 20 brokerages are not fully disclosed because they have touched the rules of the letter, or only reflect the "tip of the iceberg" of the assets impairment of the securities industry.

In addition to the impairment of credit business of several companies in the past few years, the Dongfang securities credit business continued to step on the "ST Southeast", "ST Gang Tai" and "ST big control", while Xingyi securities credit business stepped on the "longevity creature", "Kai Ying network", "Jinzhou CI hang", "Zhonghong retreat (delisting"); "Guo Hua Yuan" stepped on "ST Huaye", "ST Zhongfu", "the Yellow River cyclone", and the Western card. The coupon's "ST" and "ST Zhongwei" can be a glimpse of the risk preference of securities companies in credit business.

There are two brokerages who believe that the ST company's stock can not be pledged, but most companies can see the risk from the financial front before ST, and do not exclude the relatively aggressive brokers will take the stock pledge repo business of these coupons. While offering high interest rates, these coupons tend to have other additional conditions, such as guarantee measures, which are tempting for radical securities firms.

Strict regulation of regulators

Regulators have also noticed this problem.

Earlier media reports reported that the Shanghai Securities Regulatory Commission recently issued a notice on the preparation of stock mortgage hypothecation preparations to the securities dealers in the area, pointing out that some problems existed when the securities company judged the impairment, including the lack of empirical support for the recovery of the funds for serious breach of contracts, and the fact that the actual realizable ability, amount and disposal cycle of the collateral were not included in the evaluation and consideration factors. We should strictly regulate the valuation of securities stock pledge repo transactions.

The Shanghai Securities Regulatory Commission said that the provision for impairment of stock pledge should be tested in accordance with the requirements of the new accounting standards and the "seminar on the new financial instruments criteria of securities companies" issued by the Securities Association.

The considerations include, but are not limited to, the debtor's credit standing and repayment ability; the value of the secured assets including stocks and additional collateral; the realization of other credit enhancement measures such as the third party's joint guarantee and so on.

At the same time, in the latest newsletter of listed companies issued by Shenzhen Securities Regulatory Bureau in March 3rd, it also put forward a strict regulation on the impairment of stock pledge repurchase transactions of listed securities companies, which means that listed securities companies should make a real, accurate, complete and timely repurchase of shares in accordance with the requirements of accounting standards for Enterprises No. twenty-second - financial instruments identification and measurement. The impairment of business is accounted for and handled.

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