Perspective Of Securities Companies' Newspaper: The Registration System Of "Cake" Of 70% Of Net Profit Shared By The Top Ten Leading Companies Or Contributing To Matthew Effect Of Securities Industry

With the completion of the disclosure of the interim report, the performance of listed securities companies in the first half of the year has all surfaced.

From the perspective of "performance", the "horse dealers" effect is still. The total revenue and profit of the top ten listed securities companies account for about 60% to 70% of the performance of 39 listed securities companies. CITIC Securities is still the leader, net profit is the champion.

With the promotion of registration system reform and securities companies'm & A, the pattern of Matthew effect in securities industry may become more and more obvious in the future.

Top 10 securities companies share 70% of net profit

The performance of listed securities companies in the first half of the year was released. Wind data shows that in the first half of the year, 39 A-share listed securities companies achieved a total operating revenue of 228.990 billion yuan and a net profit of 73.102 billion yuan.

"The strong are always strong." According to wind data statistics, the top ten listed securities companies' total revenue accounts for about 64% of the total revenue of 39 listed securities companies, and the net profit accounts for about 68%.

The top ten securities companies in terms of revenue are CITIC Securities, Haitong Securities, Guotai Junan, Huatai Securities, Guangfa Securities, Shenwan Hongyuan, China Merchants Securities, China Galaxy, China CITIC construction investment and Orient Securities.

Among them, the net profit of CITIC Securities was as high as 8.9 billion yuan, and the net profits of Haitong Securities, Guotai Junan, Huatai Securities and Guangfa Securities also exceeded 5 billion yuan. Dongfang securities, which ranked 10th in revenue, made a net profit of 1.526 billion yuan.

In addition, 17 of the 39 companies had net profits of more than 1 billion yuan, and 7 of them had net profits of less than 500 million yuan.

Pacific Securities achieved the least revenue in the first half of the year, with an operating revenue of 495 million yuan and a net profit of 52.93 million yuan.

Haitong Securities said in the semi annual report that with the deepening of reform and innovation and opening up of the securities industry, the competition pattern of the industry will be profoundly changed. The regulatory level proposes to create aircraft carrier level securities companies and support the industry to become better and stronger. In the future, the favorable policies will be more inclined to the head brokers, and the market resources will be more concentrated to the head brokers.

In this context, how to develop?

"The development road of small and medium-sized securities companies lies in the characteristic development. Either they have unique advantages in self-supporting business, or they have core competence in investment banking business, etc., so the survival situation of small and comprehensive small and medium-sized securities companies will be more difficult. " Chen hancong, executive director of baishaquan M & A Financial Research Institute, told reporters of the 21st century economic report on September 2.

In fact, in recent years, the Matthew effect of the securities industry has been strengthened, and mergers and acquisitions of the industry have been emerging.

Previously, CICC acquired CICC securities wholly and renamed it "CICC wealth" as its wealth management brand. In the updated version of the pre disclosure of the prospectus disclosed on the evening of September 1, CICC also mentioned that it would continue to accelerate the integration with CICC wealth securities, realize the layered coverage of customers, establish a unified business support system, and play the platform synergy effect.

21st century economic reporter noted that CICC once again mentioned "merger and acquisition" in this prospectus.

"After deducting the issuance expenses, the raised funds of this A-share IPO will be used to increase the company's capital, supplement the company's working capital, and support the company's domestic and overseas business development. At the same time, the company will make use of the raised funds to further strengthen the investment in financial technology, internationalization and other strategic fields, and timely grasp the opportunities of strategic merger and acquisition. The company will take the overall strategy as the guidance, unifies each business development plan, unifies the management and the distribution capital fund. " CICC said.

"In the context of homogeneous development, the business differentiation and industry integration of the securities industry will be an inevitable trend, so the merger and integration of the securities industry is only a matter of time. The advantages of superior securities companies in professional ability, capital strength and business resources will continue to be strengthened, and the survival problems of small and medium-sized securities companies which lack business characteristics and core competence will become increasingly prominent.

On the other hand, due to the regional characteristics of the securities industry, the dominant mode of securities integration will be the integration of domestic securities industry, and overseas M & A will not be the dominant mode. The target of overseas M & A is mainly focused on the companies with core competitiveness in high-quality investment banks and intelligent investment advisers. " According to Chen hancong.

Registration reform and bull market boost performance growth

In the first half of the year, the growth of registered securities companies has become an important driving force.

In the first half of 2020, with the normalization of the issuance of science and technology innovation board, the scale of A-share IPO was significantly increased. A total of 119 enterprises in Shanghai and Shenzhen stock markets completed IPO issuance, with a year-on-year increase of 80.30%, and a total issuance scale of 139.274 billion yuan, a year-on-year increase of 130.5%. The total issuance cost is about 8.677 billion yuan.

Among the 119 IPO companies, Everbright Securities accounted for 11 seats, CITIC construction investment 11 seats, Guojin securities 7 seats, Guangfa Securities 8 seats, China Merchants Securities 6 seats, Minsheng securities 6 seats, industrial securities 5 seats, CITIC Securities 5 seats, Zhejiang securities 3 seats.

It is worth noting that among a number of securities companies, the investment banking business of Guojin securities has become a "dark horse". In the first half of the year, the total underwriting amount of its sponsor business was 8.488 billion yuan, most of which were on the science and technology innovation board and the growth enterprise market. The income growth of investment banking business in the first half of the year reached 200.37%.

According to the semi annual report, there are 144 sponsor representatives in Guojin securities, which has strong competitive advantages in medical and health, automobile parts manufacturing and other industries. Recently, it has increased the development and reserve of science and technology innovation board and growth enterprise board, and promoted the coordinated development of merger and reorganization and bond business.

In addition, with the rapid growth of brokerage and self financing business in the two markets.

However, in Chen hancong's view, in recent years, the exclusive license business of securities companies, such as brokerage business, financing business and equity investment banking business, has gradually become homogeneous. However, these businesses have a high correlation with the trading volume and price fluctuation of the securities market, which leads to the strong cyclical characteristics of China's securities industry and makes it difficult to grow steadily.

"In the future, the core pricing ability of the whole industry chain, customer group advantages, government relations, and financing costs are expected to become the competitiveness of securities companies." Chen hancong said.

At the same time, with the further deepening of financial reform, such as commercial banks or the approval of securities dealers license, securities companies are also facing further challenges.

Chen hancong pointed out that under the mixed operation mode, banking securities companies will have the advantages of customer resources, low-cost capital and operational stability, and they will have more advantages in the market dominated by "institutional investors". At present, banks have begun to compete with securities companies in some areas. Securities companies need to constantly carry out business reform and form core competitiveness with industry barriers in the advantageous areas, so as to cope with the new pattern of mixed operation and supervision.

"In the future, securities companies will play more and more roles in investment banks. Their pricing ability is the core, and underwriting ability is the key. At the same time, indicators such as organizational structure, talent training, capital strength and risk control strength will be paid more and more attention." Chen hancong said.

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