Brokerage's bond issuance and financing scale exceeded 1.6 trillion yuan during the year

　　Our reporter Zhou Shangding

　　In the context of the opening up of the financial industry and the development of the "Matthew Effect" in the securities industry, securities firms need to quickly improve their capital strength and competitiveness, and their willingness to raise funds is more urgent.

　　On December 10, Caitong Securities issued 3.8 billion yuan of convertible bonds, which was the second convertible bond issued by a securities firm during the year.

According to the "Securities Daily" reporter statistics, since the beginning of this year, securities companies have raised a total of 1,610.131 billion yuan through the issuance of securities company bonds, securities company subordinated bonds, short-term financing bills and convertible bonds, a year-on-year increase of 90.65%.

　　Regarding the intensive bond issuance of securities firms during the year, Zhao Yayun, a researcher at the CITIC Reform and Development Research Foundation, said in an interview with a reporter from the Securities Daily: “The current low interest rates are a good time for bond issuance. It has something to do with being optimistic about the stock market in 2021. The virtual economy may see a retaliatory rebound in 2021. The stock market may be the most dazzling market. Brokers need to expand their business to meet the big market."

　　Two listed brokers during the year

　　Issue of convertible bonds

　　In terms of convertible bonds, since this year, two listed brokerages have raised funds through convertible bonds.

In March, Huaan Securities issued a "Huaan Convertible Bond" with an issue size of 2.8 billion yuan.

On December 10, Caitong Securities issued 3.8 billion yuan of convertible bonds.

　　Regarding the use of the raised funds, Caitong Securities stated that “(the funds raised) will be used to supplement working capital and develop the main business. After the convertible bond holders are converted, they will be used to supplement capital in accordance with relevant regulatory requirements.”

　　It is worth noting that Oriental Fortune's securities subsidiary, Oriental Fortune Securities, "toned blood" through convertible bonds.

According to incomplete statistics from a reporter from the Securities Daily, in the past five years, Oriental Wealth has made two fixed increases, two issuances of convertible bonds, and a single convertible bond issuance plan "on the road." Vigorously "overweight" its securities business.

　　In January of this year, Oriental Fortune publicly issued convertible bonds to the public, and the actual raised funds totaled 7.3 billion yuan, which was used to supplement the working capital of Oriental Fortune Securities, including credit trading business, securities investment business and capital increase to Oriental Fortune Innovation Capital, and develop alternatives Investment Business.

In October, Orient Wealth again planned to issue convertible bonds. It plans to issue convertible bonds with a total amount of not more than 15.8 billion yuan to unspecified objects, which will again be used to supplement the working capital of Orient Wealth Securities, including credit trading business and securities investment business.

　　In this regard, Zhao Yayun said: “The market is maturing and the advantages of convertible bonds are gradually being known and recognized by listed companies. For listed companies, the low interest rate of convertible bonds can reduce financing costs, and the difficulty of applying is lower than issuing new shares. A more cost-effective financing method. The issuance of convertible bonds by securities firms is very attractive to investors and is a relatively easy financing method."

　　Securities companies issued corporate bonds during the year

　　The total increased by more than 150% year-on-year

　　Since the beginning of this year, securities companies have issued 265 securities company bonds, with a total issuance of 674.248 billion yuan, an increase of 152.65% over the same period last year.

　　According to incomplete statistics from a reporter from the Securities Daily, CITIC Securities has issued a total of 70.6 billion yuan in securities company bonds; Huatai Securities followed closely with 57.5 billion yuan.

In addition, there are 9 securities companies including CICC (including CICC Wealth), Haitong Securities, China Merchants Securities and other securities companies with a total amount of more than 20 billion yuan.

　　Since May, a number of securities firms have been approved to issue large-value securities corporate bonds. Among them, the application for registration of CITIC Securities' public issuance of corporate bonds with a total face value of not more than 50 billion yuan to professional investors has been approved by the China Securities Regulatory Commission.

　　Compared with the issuance of securities corporate bonds, the issuance of short-term financing bills has the characteristics of low issuance threshold, short cycle, and rapid replenishment of the company's operating funds. It has become another main channel for securities firms to supplement liquidity.

"Securities Daily" reporter combed the data of Flush iFinD and found that since the beginning of this year, securities firms have issued a total of 290 short-term financing bills, with a total issuance of 783.4 billion yuan, an increase of 81.93% year-on-year.

　　16 securities firms have issued short-term financing bills totaling more than 20 billion yuan this year.

Among them, China Securities issued 65 billion yuan of short-term financing bills, China Merchants Securities issued 62 billion yuan, CITIC Securities issued 61 billion yuan, and China Galaxy issued 59 billion yuan.

In addition, 12 securities companies including Everbright Securities, Guotai Junan, GF Securities, Haitong Securities, and Shenwan Hongyuan all issued more than 20 billion securities company bonds.

　　Since the beginning of this year, the enthusiasm of securities companies to "replenish blood" through issuance of bonds has increased, and subprime bonds are gradually being favored by securities companies.

According to the "Securities Daily" reporter, after the China Securities Regulatory Commission issued the "Decision on Amending the Regulations on the Administration of Subordinated Debts of Securities Companies" on May 29, many securities firms have a strong willingness to publicly issue subordinated debts.

Since the beginning of this year, securities companies have issued 77 subordinated bonds of securities companies, with a total issuance of 145.883 billion yuan, an increase of 1.48% year-on-year.

　　"Subordinated debt is lower than ordinary bonds, and the threshold for issuance is lower. The credit rating of securities firms is relatively high, and it is easy to obtain funds through subordinated bonds. Allowing securities firms to issue subordinated bonds to the public is obviously a big plus for listed securities firms. First of all, it is easier to replenish capital, and secondly, it can increase funds for various value-added services, and it can also enhance the securities firms’ technology upgrade and R&D capabilities." Zhao Yayun further told reporters.

　　New borrowings from securities firms within the bond issuance period

　　One of the main reasons for the substantial increase

　　Since the beginning of this year, there have been obvious signs of "increasing leverage" by brokers, and the amount of new borrowings has continued to increase. Many brokers have disclosed new borrowings (new borrowings exceeding 20% ​​or 40% of net assets at the end of the previous year trigger the credit disclosure standard).

According to incomplete statistics from a reporter from the Securities Daily, three securities firms have accumulated more than 80% of their net assets at the end of the previous year.

　　Judging from the breakdown of the classification of new borrowings by securities firms, the issuance of bonds and yield certificates has become the main factor in the substantial increase in new borrowings by securities firms during the year. Among them, the issuance of corporate bonds and short-term financing bills accounted for a relatively large proportion.

　　In the first 10 months of this year, CICC has accumulated 83.317 billion yuan in new loans, accounting for 171.67% of the net assets at the end of 2019. The balance of corporate bonds was 125.035 billion yuan, a cumulative net increase of 48.407 billion yuan from the end of the previous year. 99.74% of net assets.

　　In the first 10 months of this year, Changjiang Securities accumulated new borrowings of 22.577 billion yuan. The cumulative new borrowings accounted for 80.2% of the net assets at the end of the previous year. The bond balance increased by 6.6 billion yuan from the end of 2019, and the change accounted for 23.44 of the net assets at the end of the previous year. %, mainly due to the company’s new corporate bond issuance.

Caitong Securities accumulated new loans of 18.802 billion yuan in the first 10 months, and the cumulative new loans accounted for 88.07% of net assets at the end of the previous year. Among them, the balance of corporate bonds and short-term financing payables increased by 14.293 billion yuan from the end of 2019, accounting for more than The proportion of net assets at the end of the year was 66.95%, which was mainly due to the company’s newly issued bonds and income certificates this year.

　　It is worth noting that, compared with issuing bonds, only some large top brokerages will use bank loans to borrow money.

"The debt ratio of some listed companies, especially securities firms, is already very high, and it is difficult to obtain bank loans. Bonds and yield certificates have relatively high interest rates and are easier to issue. They are more popular with securities firms." Zhao Yayun further told reporters.

(Securities Daily)