Recently, there have been changes in the equity of many futures companies, and in addition to securities companies, more spot companies have joined futures companies.

　　Affected by the epidemic, the net profit of the futures industry dropped sharply in April this year. Industry insiders believe that the recent frequent changes in shareholding are also related to the operating difficulties and lack of cash flow of the shareholders of the original holding futures company.

　　Commodity prices are currently at historically high levels, but in the medium and long term, downside risks cannot be ignored.

　　Jing Chuan, deputy general manager of Wuchan Zhongda Futures Co., Ltd., told the first financial reporter that with the increase of shareholders' capital, the profitability of futures companies may improve. With the promulgation of the "Futures and Derivatives Law", industry regulations have been strengthened and services have improved. Businesses related to the real economy are an important breakthrough direction.

Clearance vs Buy

　　Recently, a number of futures companies have undergone equity changes, some choose to liquidate their positions, and some increase their shares.

　　For example, Merya Futures recently changed hands to a wine company.

Hubei Merya Co., Ltd., the company’s largest shareholder, announced on May 25 that it had signed the Equity Transfer Framework Agreement with Zhenghan Investment, and Meierya planned to transfer its holdings to Zhenghan Investment. 45.08% stake in Merya Futures.

　　According to public information, Zhenghan Investment is a wholly-owned subsidiary of Jinpai Co., Ltd., a domestic health-care wine manufacturer "Jingjiu".

If the transaction is completed, Zhenghan Investment will become the controlling shareholder holding a 75.06% stake in Merya Futures.

From the performance point of view, as of the end of 2021, Merya Futures achieved a net profit of 91.5912 million yuan, a year-on-year increase of 96.19%.

　　In addition, Huatai Futures will become a wholly-owned subsidiary of Huatai Securities.

According to the announcement issued by Huatai Family Co., Ltd. on May 26, it will sell a 40% stake in Huatai Futures to Huatai Securities and obtain 1.59 billion yuan in cash to "optimize the asset structure and focus on real estate development business".

　　According to public information, the 40% stake in Huatai Futures held by the gorgeous family was acquired from Tibet Huafu Investment Co., Ltd. in 2015.

The 2021 annual report shows that Huatai Futures achieved a net profit of 368 million yuan during the reporting period, a year-on-year increase of 66.61%.

　　There are also a number of futures companies that have changed their names due to equity changes.

Zhaojin Futures announced on May 20 that the company name was changed to "Shandong Qisheng Futures Co., Ltd.".

Just last March, Liangyun Futures changed its name to Hengli Futures due to a change in equity.

　　In addition, since May this year, Zheshang Futures, CITIC Construction Investment Futures, Huatai Futures, Galaxy Futures, etc. have reported capital increase news.

　　Cheng Xiaoyong, director of Baocheng Futures and Finance Research Institute, believes that the recent changes in the equity of futures companies are frequent. On the one hand, securities companies have increased the layout of their futures business, and some real companies have also begun to participate in futures trading; on the other hand, affected by the epidemic, some of the original Shareholders holding futures companies may be forced to transfer their equity in futures companies due to poor management.

Industry profits halved

　　It is worth noting that in April this year, the net profit of the futures industry suffered a "half cut".

　　According to the operations of futures companies in April recently disclosed by the China Futures Association, as of the end of April 2022, there were 150 futures companies across the country, distributed in 31 jurisdictions.

In April, the overall transaction volume of the industry was 40.77 trillion yuan, the transaction volume was 469 million lots, and the net profit was 489 million yuan, down 49.79% year-on-year and 60.22% month-on-month.

　　According to industry analysts, affected by market conditions and macro factors, the trading volume and open interest in the futures market have declined recently, and the capital market has weakened and the investment income of futures companies has decreased, resulting in a sudden drop in the industry's profitability.

According to statistics from Datayes!, the industry's profitability declined significantly in the first quarter.

　　In terms of operating data, the interim data shows that the overall operating income of futures companies in April fell by 24.51% year-on-year, fee income fell by 4.81%, and net profit fell by 49.79% year-on-year.

In the first four months of this year, the net profit of futures companies totaled 3.145 billion yuan, a year-on-year increase of 0.12%.

　　From the perspective of commodity market performance, the South China Commodity Index hit a record high of 2,569.47 points this year, while the CSI Commodity Index, which tracks the overall performance of commodity stocks, has fallen by more than 7% since the beginning of 2022.

The chief FICC analyst of CITIC Securities clearly believes that 2022 may be the year when commodities peak.

　　It is clearly expected that in 2023, with the successive implementation of tightening policies in major overseas economies around the world, commodity prices are expected to gradually fall, but compared with the level before the outbreak of the epidemic in 2019, the absolute value of their prices will remain high for longer than expected.