Now The "Floor Price" Of Shenwan Hongyuan'S 60 Billion Financial Bonds Is Only Charged 60000 Underwriting Fees

"This is too cruel." for the recent situation of "floor price" in the financial bond underwriting of Guangfa bank, many bond underwriters in the interview lamented to the reporter of the 21st century economic report.

A few days ago, Guangfa announced the results of the selection of procurement projects of financial bond issuing service institutions (lead underwriters) from 2021 to 2022. From the perspective of this financial bond project, Guangdong Development Bank plans to select no more than six selected suppliers as the lead underwriters through centralized purchase, and provide the issuing services of 60 billion financial bonds in 2021-2022 to Guangfa and carry out relevant work.

However, among the six main underwriters selected, Shen wanhongyuan offered an underwriting rate of 0.0001%, that is, one part per million. Based on this calculation, even if Shenwan Hongyuan can take over the issuance of 60 billion financial bonds, the company can only obtain an underwriting fee of 60000 yuan.

"Although the financial debt is the volume, does not make money, but Shenwan to the offer is a bit off the mark." There are domestic head securities investment bank bond underwriters said. In fact, in order to curb the low price competition in bond underwriting, the China Securities Association (hereinafter referred to as "the Securities Association") has issued a number of policies, but from the recent market situation, the "floor price" of bond underwriting still exists.

Underwriting rate "one in a million"

"The pressure of financial debt adjustment is small, and it is a big enterprise like Guangfa bank. It should basically have no travel costs and sell well. It can be regarded as you get the salary of the company and issue bonds by the way. " A medium-sized domestic securities firm investment bank bond underwriters jokingly said to the reporter of the 21st century economic report. In his view, Shenwan Hongyuan's 0.0001% underwriting rate is "supposed to be OK" to cover its costs.

In fact, except Shenwan Hongyuan's "floor price" of 0.0001% rate, the other five main underwriters of GF bank's financial bond issuance did not offer relatively high prices.

Among them, China Securities construction investment has given an underwriting rate of 0.000133%. Based on this calculation, the final underwriting cost of 60 billion financial bonds is only 79800 yuan, which is better than Shenwan Hongyuan's offer. Among the other four securities companies, Guotai Junan and Guangzhou Branch of China Merchants Bank all had a winning rate of 0.0002%. The rates of Huatai Securities and GF Securities are relatively high, but they are only 0.0003%, that is, three parts per million.

Before that, the industry also often appeared the phenomenon of ultra-low bond underwriting.

In April 2020, Hainan Development Holding Co., Ltd. publicly selected the lead underwriter for issuing medium-term notes. Finally, CITIC Securities and industrial bank won the bid, but the underwriting rate was only 0.03 ‰, that is, 3 / 100000.

In June, after the interbank market, the underwriting fee of corporate bond market reappeared "floor price". During the issuance of CNNC financial leasing company bonds, Guotai Junan and CITIC Securities gave underwriting rates of 0.015% and 0.01% of the total rate respectively. Therefore, the China Securities Association also launched a self-discipline investigation on relevant issues.

Since then, in January 2021, six securities companies, including China construction investment securities, Cinda securities, Huatai united, CICC, Haitong Securities and Shenwan Hongyuan, won the bid for the bond underwriting project of China railway investment public company, with underwriting fee quotations of 0.01%, 0.01%, 0.02%, 0.02% and 0.03%, respectively. These six securities companies will underwrite the bond issuance quota of 10 billion yuan of China railway investment.

On January 14, China railway investment was discussed by the China Securities Association. Others, such as Jiaxing bank and Jiangxi bank, also appeared the phenomenon of low price underwriting in the issuance of non fixed term capital bonds.

"There are still market-oriented factors behind the issuance of low-priced bonds. For example, the continuous issuance of perpetual bonds requires little supplementary due diligence, and the total revenue is also considerable. Low price underwriting of individual projects forms stable cooperation with central enterprises and state-owned enterprises, which is also very beneficial to the development of investment banks. " The above medium-sized securities firm investment bank bond underwriters said. However, he also admitted that the average underwriting rate of 1 / 2 per million for the financial bonds of Guangfa bank is indeed quite amazing, "it can only be said that there is no fear of selling and there is no risk of explosion, so that such a low price can be given.".

Constraints within the industry are conducting

During the interview, other top domestic securities dealers disclosed to reporters of the 21st century economic report that their recent participation in the selection of financial bond underwriting attracted a total of 8 securities companies. One of the medium-sized domestic securities companies "disorderly prices" and "was directly kicked out (the issuer)"

"All eight securities dealers have quoted a price difference of less than one hundred thousand percent, and only one has directly quoted one fifth of ours, that is, two parts per million. If the price is too low, it will definitely be punished, and the issuer will be shocked. " According to the head of the securities dealers, there is still a bond underwriting strategy of undercutting the price and grabbing the market.

However, in the above cases, the reason why the issuers are willing to give up the preferential policy of underwriting financial bonds at low prices is also due to a number of policies issued by the China Securities Association in recent years to restrain the "price war" of bond underwriting.

In April this year, the Securities Industry Association issued the guidelines on internal restriction of corporate bond underwriting quotation to all corporate bond underwriters, formally putting forward the overall requirements for the establishment of internal quotation constraint system. Among them, the internal constraint line of underwriting quotation will be determined based on the average project cost of the previous year. If the project quotation is below the internal constraint line, the underwriting institution shall state the reasons and may be subject to spot check by the Securities Association.

"At present, as head brokers, we have been caught more strictly, and the regulation has come to talk about" low price "underwriting." According to the introduction of the above domestic head securities dealers, the underwriting rate of domestic bonds in the company is maintained at more than one tenth of a million in principle, "if it is lower than that, if it fails to comply with the regulations, this time the report is relatively low, or go to apply specifically."

In addition, in June, the Securities Association solicited public opinions on the revision of the measures for the evaluation of the practicing ability of securities companies' corporate bond business. Among them, the new index of "maintaining market order" was proposed, with a full score of 10. In addition, the index of underwriting amount of corporate bonds is deleted from the index of business capacity. In the current rules, the full score of this indicator is 7 points.

For the "market order maintenance" index, the future Securities Industry Association plans to moderately add points to the securities companies whose internal constraint line of corporate bond underwriting quotation is above the industry average value in the evaluation process of corporate bond business practice ability. At the same time, it is also planned to deduct points for relevant behaviors involving low price competition according to the seriousness of the case, so as to alert the industry to orderly development.

The underwriters of the above-mentioned medium-sized securities firms' investment banks believe that the securities industry association is guiding the underwriters to change from "quantity competition" to "quality competition". But now, on the one hand, the new rules have not been formally implemented, on the other hand, the low-price bond underwriting is also full of various market-oriented factors“ Low price underwriting is artificially designed to offset the underwriting scale. Some are good benchmarking projects that must be won. Others are to cultivate relationships, form more stable cooperation, and earn more underwriting fees for a long time. It is not just a matter of reversing the quantity competition that can be solved. "

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