In 2021, more than 8,000 people will join the securities industry, the charm value of the industry rises, and total assets break 10 trillion yuan for the first time

　　Our reporter Li Wenzhou Shangdong

　　The profits of 124 securities firms, the total assets of 10.31 trillion yuan, the net profit of 143.979 billion yuan, and the 340,000 employees...this series of figures are outstanding results achieved by the securities industry in 2021.

　　In 2021, securities firms will forge ahead and reach a new level: the level of compliance and risk control will be significantly improved, the total assets of the securities industry will exceed 10 trillion yuan for the first time, and 124 securities companies will achieve profits; the industry’s capital increase and expansion will enter a “new cycle”, business types and The variety is gradually enriched, and new results have been achieved in serving the real economy.

At the same time, it also attracted more professionals to come...

　　The industry's total assets broke 10 trillion yuan for the first time

　　In the context of high-quality development, the profitability of the securities industry has continued to improve.

In the first three quarters of 2021, 140 securities companies achieved operating income of 366.357 billion yuan and net profit of 143.979 billion yuan, an increase of 7% and 8.51% year-on-year respectively, and 124 securities companies achieved profitability.

　　In terms of scale, as of September 30, the total assets of 140 securities companies exceeded 10 trillion yuan for the first time, reaching 10.31 trillion yuan.

Among them, the industry leader CITIC Securities still maintains the status of the first and only domestic brokerage with assets exceeding one trillion yuan.

CITIC Securities' total assets, net assets, operating income, net profit and other indicators rank first in the industry. Compared with the total assets of 11.5 billion yuan in 2005, CITIC Securities has achieved a leap-forward growth in total assets in 16 years, ranking first in the industry. Leading position in the industry.

　　At present, market trading is active, and dividends from capital market reforms such as the registration system and Beijing Stock Exchange have been superimposed, which has accelerated the growth of the overall profitability of the securities industry.

With the accelerated implementation of the comprehensive registration system, investment banking, wealth management, derivatives and other businesses are expected to become new factors driving the profitability of securities firms.

　　Capital increase and capacity expansion enter the "new cycle"

　　In 2021, "financing to supplement blood" has become one of the key words in the securities industry.

　　For securities firms, due to the development of treasury businesses, higher requirements are placed on the capital of securities companies.

In 2021, the securities industry has entered a "new cycle" of capital increase and capacity expansion; in the future, the "equal emphasis" of capital-intensive business and capital-light business will become the development trend of the securities industry.

　　"Capital is king" has become the consensus of the securities industry, and securities firms urgently need to expand the scale of financing through the capital market.

　　From the perspective of refinancing, since the beginning of this year, brokerage firms have raised nearly 1.7 trillion yuan through the issuance of securities company bonds, subordinated bonds, and short-term financing bonds.

At the same time, the listed securities companies have completed a total of 40.363 billion yuan in fixed increase and allotment of funds, and there are still 109.3 billion yuan of refinancing plans (fixed increase, allotment, convertible bonds) "on the road."

CITIC Securities has thrown out a 28 billion yuan large-scale allotment plan, of which 19 billion yuan will be invested in capital intermediary business.

　　However, from the perspective of direct financing, the team of listed securities firms has expanded to 41. Unlike the four new members of A-share securities firms in 2020, only Caida Securities will achieve an A-share IPO in 2021.

　　From the perspective of fund-raising purposes, the capital intermediary business has become the focus of the current various brokerages vying for their efforts, and has also become the main investment direction of fund-raising.

　　Brokers welcome the opening of Beijing Stock Exchange

　　In 2021, the establishment of the Beijing Stock Exchange has further improved China's multi-level capital market. As an important intermediary agency, the brokerage firm also ushered in new business development space.

　　Since the establishment of the Beijing Stock Exchange, brokerages have been actively preparing for the war in multiple departments, comprehensively sorting out existing project resources, communicating the intentions of potential customers, and contributing to the incubation of the "specialized, special and new" small giant enterprises in the capital market.

At the same time, in terms of business development planning, project research, and personnel arrangements, brokerage firms have taken active actions, and the "competition war" for high-quality projects has quietly started.

For example, brokerages have multi-departmental linkages to carry out primary market equity fund business, set up secondary market public offerings, brokerage asset management products, etc.; there are also brokerages preparing to make markets for innovative small and medium-sized enterprises and "specialized, special-new" enterprises of the Beijing Stock Exchange. Provide professional liquidity support.

In addition, securities firms attach great importance to the investment in talents, and further accelerate the recruitment and training of personnel in various sub-fields such as business sponsorship, sales, and review of the Beijing Stock Exchange, and set flexible recruitment conditions.

　　The ability of brokers to serve the real economy has been further improved.

Thanks to the implementation of a series of basic institutional reforms in the capital market and the further improvement of the multi-level capital market, the scale of financing in the A-share market has increased significantly, and the securities industry’s ability to improve direct financing in the real economy has further improved.

　　Important progress in wealth management transformation

　　In recent years, brokerages have aimed at the blue ocean of wealth management and have begun to explore the path of wealth management transformation and upgrading, and have achieved a number of important developments in 2021.

　　At present, the wealth accumulation and allocation structure of residents has changed, and there is huge room for the development of wealth management business.

In May of this year, the chairman of the China Securities Regulatory Commission, Yi Huiman, mentioned "wealth management" four times in his speech at the seventh member meeting of the China Securities Association, which strengthened the position of securities firms regarding wealth management functions.

　　Judging from the effectiveness of the transformation of securities firms in 2021, in the first three quarters, the securities industry achieved a net income of 100.079 billion yuan from the securities brokerage business (including the lease of trading unit seats), a year-on-year increase of 11.19%; and a net income of 21.962 billion yuan from the asset management business, a year-on-year increase. 3.28%.

This shows that the securities industry's ability to serve residents' wealth management has further improved, and the transformation of wealth management has achieved initial results.

　　As an important part of wealth management, the asset management business also ushered in new development.

As the transition period of the new asset management regulations draws to a close, the transformation of securities firms’ asset management has ushered in an "acceleration", with the total principal of the securities firms’ entrusted management funds reaching 10.97 trillion yuan.

Since the beginning of this year, brokerage firms have actively promoted the transformation by establishing asset management subsidiaries, applying for the qualification of public offering fund management business, completing the public offering transformation of 145 large-scale collective products, and accelerating the deployment of FOF products.

　　From the securities industry investment strategy of securities firms in 2022, it can be seen that wealth management is frequently mentioned, and "major wealth management" is expected to become the main line of securities firm stock investment in 2022.

　　Securities industry mergers and acquisitions reappear

　　In recent years, under the background that the regulatory authorities have proposed encouraging market-oriented mergers and acquisitions and other measures to create aircraft carrier securities companies, from the acquisition of China Investment Securities by CICC, the acquisition of Guangzhou Securities by CITIC Securities, the horizontal combination of Tianfeng Securities and Hengtai Securities, and the mergers and acquisitions of the securities industry. Integration began to accelerate.

In 2021, mergers and acquisitions in the securities industry will reappear.

　　In September, 2.859 billion shares of New Era Securities were listed for transfer, with a reserve price of 13.135 billion yuan, and the transfer share accounted for 98.24% of the total shares of New Era Securities. For a while, it attracted strong attention in the industry.

Both Western Securities and Dongxing Securities want to compete for equity in New Era Securities.

However, Dongxing Securities failed to reach an agreement on the acquisition conditions with related parties, and Western Securities and Beijing Financial Holdings were unable to complete the submission of documents and deposit payment within the required time. All of them have withdrawn from New Era Securities. The dispute over equity.

In the end, China Chengtong acquired a 98.24% stake in New Times Securities.

　　However, Dongxing Securities and Western Securities also stated that they will continue to pay attention to industry acquisition opportunities and seize opportunities to become bigger and stronger in due course.

　　Since the 1990s, my country’s securities industry has experienced four waves of mergers and acquisitions in the development process: separate operations, comprehensive governance, "one participation and one control", and market-oriented mergers and acquisitions.

On the whole, mergers and acquisitions among securities firms are aimed at expanding the territory, enhancing strength, and becoming bigger and stronger.

In the future, the probability of mergers and acquisitions will continue to increase.

　　"Market value brother" changes ownership

　　In 2021, the reform of the securities industry aroused market attention, and the change of ownership of the A-share securities sector's "market capitalization brother" once became a hot topic.

　　On May 19, Oriental Wealth surpassed CITIC Securities, the “big brother of securities industry”, for the first time with a market value of over 300 billion yuan, becoming the new “big brother of market value” of securities firms.

Since then, the market value of the two companies has gradually widened the gap. As of December 29, the market value of CITIC Securities was 334.54 billion yuan, while the market value of Oriental Fortune had increased to 375.29 billion yuan.

　　Oriental Wealth is one of the representatives of the securities industry with high "basic content" and "income ratio". Benefiting from the development trend of wealth management, it has been recommended by many institutions as a key investment target for the main line of wealth management since the beginning of this year.

　　In fact, in the context of the overall sluggish performance of the securities sector this year, all targets with strong wealth management business, such as Guangfa Securities, Oriental Wealth, and Oriental Securities, have stepped out of their independent market.

The dispute over the “one brother in the securities industry” highlights to a certain extent the need for transformation and transformation of the industry’s wealth management.

　　During the year, in order to further promote the transformation of wealth management business, a number of securities firms adjusted their organizational structures.

For example, Tianfeng Securities adjusted the organizational structure of the company's retail business headquarters, abolished the retail business headquarters, and established a wealth management center. The departments under the original retail business headquarters were adjusted to the wealth management center; CICC plans to transfer the domestic wealth management business to a wholly-owned subsidiary. Subsidiary CICC Wealth further realized the business integration of both parties; Oriental Wealth adjusted the company's organizational structure, added wealth management business groups, innovative business business groups, and further integrated the wealth management sector.

At the same time, foreign-funded "catfish" accelerated its deployment in China, and Goldman Sachs Gaohua was approved for wealth management business qualifications.

　　The first wholly foreign-owned securities firm was born

　　In 2021, the pace of foreign investment in China's capital market will accelerate.

At present, the number of foreign-owned securities companies has increased to nine.

Among them, including the first wholly foreign-owned securities firm-JPMorgan Chase Securities (China); and 21 foreign-backed securities companies are queuing to apply for establishment.

　　In August, China's first wholly-owned foreign-owned securities firm acquired JPMorgan Chase Securities (China).

From the perspective of JPMorgan Chase's layout in China, its layout in China is not limited to wholly-owned securities companies.

On June 18, 2020, JPMorgan Chase announced that it had obtained the approval of the China Securities Regulatory Commission to increase its shareholding in JPMorgan Chase futures from 49% to 100%.

So far, JPMorgan Chase Futures has officially become the first wholly foreign-owned futures company in China.

　　At the same time, JPMorgan Asset Management intends to acquire 100% equity in the joint venture, China Investment JPMorgan Fund Management Co., Ltd.

If the matter goes smoothly, JPMorgan Chase will become the first foreign institution in China to achieve wholly-owned holdings of the three major financial institutions of securities, futures, and fund companies.

　　Under the new pattern of full opening up, more foreign-funded institutions will flow into my country's capital market in the future.

　　Over 8,000 people joined the securities industry

　　In 2021, the securities industry has demonstrated the development resilience of the industry with outstanding performance, attracting a large number of talents to come to this "sea of ​​stars", and the charm of the securities industry continues to rise.

　　An Qingsong, Secretary of the Party Committee of the Securities Industry Association of China, said, “Talents are a key factor in career development. Securities companies are the most important intermediary institutions in the capital market. A high-quality securities talent team with both ability and political integrity."

　　At present, the total number of employees in securities companies (including subsidiaries) is 341,500.

Since the beginning of this year, a total of 8283 people have joined the securities industry.

Among them, with the expansion of the primary market and the establishment of the Beijing Stock Exchange, the business line with the largest proportion of brokers inflow is investment banking, and the number of sponsor representatives in the industry has increased by 16.67% year-on-year.

The talent team of the industry presents the characteristics of youth, specialization, high education, and internationalization. The quality, structure and stability of the talent team are continuously optimized and improved.

　　The total number of employees in five brokerage firms has exceeded 10,000. They are CITIC Securities (12,700), GF Securities (11,300), Guosen Securities (11,200), Guotai Junan (10,900), and CITIC Construction Investment ( 10,400 people).

(Securities Daily)