China CITIC Construction Investment Won The First Place In The Industry In Terms Of Fund Raising, And The Project Stock Of CITIC Securities Is Far Ahead Of The Rest

As of December 21, 372 companies had raised 451.3 billion yuan through IPO, a record amount since 2010.

11 trillion! In 2020, the financing scale of stocks and bonds underwritten by securities companies has increased by nearly 25% compared with the same period last year.

In early December, Yi Huiman, chairman of the China Securities Regulatory Commission, published a signed article saying that by the end of September 2020, the stock of direct financing had reached 79.8 trillion yuan, accounting for 29% of the total stock of social financing. During the 13th Five Year Plan period alone, 38.9 trillion yuan of new direct financing was added, accounting for 32% of the increase in social financing scale in the same period.

Both equity financing and debt financing are important ways to improve direct financing. According to wind data, as of December 21, the financing scale of stocks and bonds underwritten by securities companies has reached 11.01 trillion yuan, an increase of 24.26% compared with 8.86 trillion yuan in 2019.

Among them, in equity financing, 372 enterprises raised 451.3 billion yuan through IPO, which was the highest since 2010.

He Zhaofeng, managing partner of China listing service of anyong University, said that the new crown pneumonia epidemic affected the global economy, but the IPO markets around the world were still full of resilience and continued to grow. In particular, the mainland and Hong Kong markets showed strong performance in terms of the total number of IPOs and the amount of capital raised. Under the new normal, enterprises are seizing the opportunity of listing to expand their capital base and inject new momentum into the future development, so as to cope with the highly uncertain market prospect of next year.

The IPO project of China Securities Construction Investment Co., Ltd

"We expect that by the end of the year, 395 companies will be listed, raising 470.7 billion yuan. The number of IPOs and the amount of funds raised have increased by 97% and 86% respectively over the same period last year. The annual fund-raising amount is the highest since 2010." Zhang Ningning, partner of Ernst & Young Huaming audit services, said that in 2020, the A-share market was basically not affected by the new crown epidemic, and the overall IPO activity momentum was very strong.

Focusing on the "report card" of securities companies and investment banks, 9 securities companies underwritten IPOs and raised more than 10 billion yuan in the year, with a total market share of 69.49%. The "28 February effect" of the industry is still prominent.

It is worth mentioning that the "top one" of IPO fund-raising changed owners this year. During the year, the IPO project underwritten by CSCI securities raised 79.53 billion yuan, with a market share of 17.71%. The overall fund-raising scale increased by 63.115 billion yuan compared with last year, with a year-on-year increase of 384%.

And last year's "fund-raising king" CICC ranked third in the industry. The company raised a total of 44.691 billion yuan in IPO underwriting projects, with a year-on-year decrease of 15.455 billion yuan.

"I feel that the investment banking business of CSCI is still very open, and the project reserve is very balanced. Whether it is the main board or the gem, even the new third board has a good performance. Although the overall scale of CICC has declined, the quality of the project is obvious to all. " Some senior investment banks in Beijing commented.

Among a large number of securities companies, Haitong Securities ranked second in the list of funds raised from IPO underwriting projects, with a total of 62.149 billion yuan, a year-on-year growth rate of 1686%. However, CITIC Securities, the traditional "big brother" of the securities industry, only underwritten 43.402 billion yuan in IPO projects, ranking the fourth in the industry. However, the overall performance of the company was relatively stable, with a slight decline compared with 45.308 billion yuan in the same period last year.

"This year's real IPO year, securities companies are not advancing or retreating." "If you include ant's IPO, CICC will perform very well this year. However, CITIC Securities Investment Bank, ant and Jingdong Digital Technology Co., Ltd. have not reached cooperation. In the first half of the year, CITIC only jointly underwrites the Beijing Shanghai high-speed railway, and the real main contractor is CITIC construction investment. SMIC, which is known as "the largest IPO of a shares in recent ten years", has not been taken over by CITIC.

Next to CITIC Securities are Guotai Junan, Huatai United Securities, Guojin securities and China Merchants Securities. It is worth mentioning that Minsheng securities, a medium-sized securities firm in the industry, has also been included in the list of IPO underwriting scale of 10 billion yuan, with a total of 11.176 billion yuan raised from underwriting IPO projects.

"The projects of Minsheng securities are mainly reserved on the growth enterprise market. This year, the pilot registration system on the gem has accelerated the pace of issuance and examination, which has brought a lot of performance support to the people's livelihood." There is a Chinese character securities firm investment bank said.

It should be pointed out that the financing scale can not represent all of them. However, CITIC Securities, which failed in the underwriting scale, occupies the leading position in the industry in terms of the number of IPO underwriters and the actual investment banking business income.

Wind data showed that as of December 21, the "three middle schools" of the securities industry had underwritten 101 IPO projects in total during the year, and the total market share of the three companies reached 23.87%. Among them, CITIC Securities underwrites 37 orders, ranking first in the industry. In the industry, there are 15 securities companies that have accumulated more than 10 IPO projects.

In terms of the actual income from IPO projects, CITIC Securities achieved a revenue of 2.242 billion yuan in the year, an increase of 810 million yuan compared with that in 2019, which is slightly inferior to that of CSCI. In contrast, in 2020, CSCI earned 2.35 billion yuan in revenue from IPO underwriting, and continued to dominate the industry, with a revenue growth rate of 175%.

In addition to CSCI and CITIC Securities, Haitong Securities (1.989 billion yuan), CICC (1.861 billion yuan) and Huatai United Securities (1.316 billion yuan) ranked the top in terms of revenue from IPO projects.

The number of investment banks will be decided by the scale of existing projects in the coming year

In the view of the industry, 2020 is a well deserved investment banking year.

Under the background of comprehensively promoting the registration system reform, accelerating the listing of new economy enterprises, and continuously increasing the proportion of direct financing, businesses such as the return of China's capital stock, refinancing and asset restructuring in 2021 will also bring huge opportunities for securities companies and investment banks.

Xia Changsheng, chief analyst of non bank finance of Tianfeng securities, predicts that the equity financing amount of securities companies will reach 1.8 trillion yuan in 2021, and the IPO audit is expected to slow down to 372 billion yuan. The underwriting scale of core bonds increased by 20% to 5.04 trillion yuan on a year-on-year basis. In the whole year, investment banking revenue reached 63.2 billion yuan, up 5.6% year on year.

In this context, the reserve of investment banking projects determines the "harvest" of securities companies in the coming year to a certain extent.

According to wind data statistics, at present, the number of IPO queuing companies that have not yet passed the meeting has reached 566 in all sectors of the A-share market. Among them, there are 61 CITIC Securities, accounting for 10.78% of the total market. Next came Minsheng securities, a medium-sized securities firm, with 40 IPO projects under review. However, among the Minsheng securities projects, the growth enterprise market projects are still the majority, reaching 25, and there are only 6 main board and small and medium-sized board projects.

In the third place in the industry is China Securities construction investment, whose IPO projects under examination are only one less than Minsheng securities, with 39 orders. After that, Huatai united, Guotai Junan and CICC, with 33, 31 and 25 IPO projects under review respectively.

"The scale of stock projects is an important indicator to judge the performance of investment banking business of securities companies. From the current data, the head position of CITIC Securities is still hard to shake. " The above Chinese initial securities investment bank said.

However, CITIC Securities has continued to move forward the IPO stage of enterprises. Among the enterprises in the IPO guidance filing and guidance acceptance process, CITIC Securities has tutored 109 enterprises, and continues to rank first in the industry, accounting for 5.56% of the total number of industries. Guojin securities, Haitong Securities, Guotai Junan, CITIC construction investment, China Merchants Securities, Huatai united and other securities companies are also making efforts in the guidance and filing process, with more than 80 reserve projects.

Xia Changsheng said that the registration system has increased the number of subjects meeting the listing requirements, but at the same time, it has higher requirements for information disclosure. In the future, the specialization and regional division of investment banks will be more important, and the demand for personnel around the investment banking business will be increased. Large securities companies have the advantage of platform, and the rate of expansion will be higher in the future. For 2021, he pointed out that the investment banking business under the registration system has a clear trend of centralization. Meanwhile, with the gradual implementation of large projects, the IPO rate of subsequent securities companies is expected to continue to rise.

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