Author: Zhang Yuanke
Recently, the news that a brokerage company dissolved the company's proprietary department at one time has triggered discussions, and at the same time, a notice that Zhongtai Securities has removed four relevant responsible persons has begun to circulate, and the rumored brokerage has also pointed to Zhongtai Securities. Later, Zhongtai Securities responded to a number of media that it did not dissolve all the proprietary departments, but did adjust some personnel of the self-operated offline securities investment departments.
From the performance point of view, whether it is the overall financial data or the proprietary income alone, Zhongtai Securities in 2022 has performed a little "weak". Looking at the brokerage industry, there is more than one brokerage company in trouble like Zhongtai Securities. According to Choice data, in 2022, a total of 7 securities firms had negative net income from proprietary business, except for Zhongtai Securities, Haitong Securities, Changjiang Securities and Dongxing Securities suffered more losses, all exceeding 3 million yuan.
Optimized executives
According to Zhongtai Securities, the rumor that "all the proprietary departments are dissolved and all personnel are dismissed" is not true, and only some personnel of the self-operated offline securities investment department have been adjusted. However, it is not difficult to find that some of the "personnel" (4) who were announced for optimization are all executives of Zhongtai Securities.
The notice of appointment and dismissal stated that according to the needs of work, after the company's research and decision, Pan Dong was removed from the position of member of the Zhongtai Securities Financial Market Committee and general manager of the securities investment department; Chen Jining's position as the general manager of the Securities Investment Department of the Zhongtai Securities Financial Market Committee; Wang Haotian, co-general manager of the securities investment department of Zhongtai Securities Financial Market Committee; Wang Shengqing is the deputy general manager of the securities investment department of Zhongtai Securities Financial Market Committee.
According to information from the Securities Association of China, in addition to Wang Shengqing, who joined Zhongtai Securities in 2009, Pan Dong, Chen Jining and Wang Haotian have all worked for a number of securities firms.
In 2004, Pan Dong worked at Northwest Securities, worked at China Universal Fund since September 2009, and then left in November 9; On March 2012, 11, Pan Dong registered to practice in Zhongtai Securities. Chen Jining joined Everbright Securities in July 2014, Essence Securities on May 3, 8, and did not join Zhongtai Securities until February 2004. Similar to Chen Jining, Wang Haotian also joined Zhongtai Securities in February 7, and the two were removed from their posts for more than a year. Prior to joining Zhongtai Securities, Wang Haotian first joined Guosen Securities Investment Management Headquarters in 2007 and then joined CSC Securities Trading Department in 5.
The reasons for the optimization of securities investment department executives may be glimpsed from the annual report data.
According to the 2022 annual report of Zhongtai Securities, the company's operating income in 2022 fell by 29.09% year-on-year, recording 93.25 billion yuan, and the net profit attributable to shareholders of the parent company was 5 million yuan, a year-on-year decrease of 90.81%. Among them, the operating income of securities and alternative investment business of Zhongtai Securities was -56 million yuan, down 8.132% year-on-year; Self-operated income was -46 million yuan, down 3% year-on-year.
In addition to reducing personnel, Zhongtai Securities also reduced the proportion of proprietary investment business. In 2022, the proportions of proprietary equity securities and their derivatives and proprietary non-equity securities and their derivatives to net capital of Zhongtai Securities will be 14.43% and 191.15%, respectively, down 2021.8% and 79.41% from 75.
Zhongtai Securities said that the above situation was mainly affected by the decline in the main indexes of the securities market, and the disposal income and fair value change income of the company's securities investment decreased year-on-year. Regarding this adjustment, Zhongtai Securities said that it will lay a solid foundation for the higher-quality development of proprietary business, and will continue to adhere to the spirit of contract and market-oriented principles to optimize and integrate the professional team of securities investment.
However, it is worth noting that in recent years, the changes in the senior management of Zhongtai Securities are not limited to the proprietary business department, but also the frequency of changes is more frequent.
In March last year, Zhong Jinlong resigned as the company's deputy general manager and still serves as party secretary and chairman of Zhongtai Futures Co., Ltd., a subsidiary of Zhongtai Securities. On October 3, Zhongtai Securities announced that it had appointed Feng Yidong as the company's general manager, and Bi Yuguo would no longer serve as the company's general manager. In December, Zhongtai Securities issued another announcement that Li Feng would no longer serve as a director and chairman, and Wang Hong, former deputy secretary of the party committee and president of Shandong SDIC, would serve as a director and chairman of the company, and Bi Yuguo would perform a director and vice chairman of the company.
On March 2023, 3, Sun Peiguo, deputy general manager of Zhongtai Securities, who has served for 23 years, applied to resign as the company's deputy general manager due to personal reasons. From March 16 to March 2007, in addition to serving as the deputy general manager of Zhongtai Securities, Sun Peiguo also served as the general manager of the investment banking headquarters of Zhongtai Securities, the general manager of the securities investment department, and the compliance director.
The "Death" of Brokerage Self-operation
According to the annual report data, the overall brokerage industry will show a "cold winter" trend in 2022, and the news of the change of the senior management of Zhongtai Securities' proprietary business has also made the market re-examine the proprietary performance of securities firms - how many securities firms have lost money in stock speculation? If you only "watch the sky and eat", how much gold is the self-operated business?
In fact, in 2022, the stock market will fall, the trading volume will shrink, and proprietary investment will seriously drag down the performance is very common, and the fee income of many securities firms (brokerage, investment bank, asset management) has decreased year-on-year. According to data from the Securities Association of China, the securities industry achieved securities investment income of 2022.608 billion yuan in 39, down 55.94% year-on-year.
"At present, the situation that the brokerage's proprietary business depends on the sky still exists." Wang Jianhui, a senior industry insider, said, "In the early stage of self-operated business development, the overall scale of the market showed rapid growth, and everyone's homogenization tendency was more obvious. When the market is good, everyone can make money, and once the market is flat, the disadvantages of homogenization will appear. ”
According to incomplete combing, in 2022, the total net income of 43 listed securities firms decreased by 53.4% year-on-year, to about 778.10 billion yuan. Among them, the net loss of proprietary business of Haitong Securities, Changjiang Securities, Dongxing Securities, Zhongtai Securities, Great Wall Securities, Guoyuan Securities and West China Securities was -34.9 billion yuan, -05 million yuan, -7 million yuan, -03 million yuan, -3 million yuan, 51.1 million yuan and 03.9376 million yuan respectively.
There were 50 companies with net income of more than 8 billion yuan from proprietary business, namely CITIC Securities 176.36 billion yuan, CICC 106.08 billion yuan, Guotai Junan 70.26 billion yuan, Huatai Securities 60.27 billion yuan, China Galaxy 55.9 billion yuan, China Merchants Securities 51.15 billion yuan and Shenwan Hongyuan 50.82 billion yuan.
In the first quarter of 2023, the capital market began to pick up, and the proprietary performance of brokerages also improved.
According to Wind data, the performance of 43 listed securities companies improved significantly in the first quarter driven by proprietary business, with a total operating income of 1372.67 billion yuan, a year-on-year/month-on-month increase of 38.01% and 13.68% respectively; The net profit attributable to the parent was 448.23 billion yuan, an increase of 77.46% and 74% year-on-year/month-on-month, respectively.
Among them, the scale of proprietary financial assets of listed securities firms was 4.4 trillion yuan, an increase of 12% year-on-year. The self-operated business achieved a year-on-year turnaround and rebounded sharply, and the self-operated business revenue in the first quarter was 497.35 billion yuan, significantly exceeding the -19.13 billion yuan in the same period last year.
According to incomplete statistics, the investment income (including fair value change gains and losses) of listed securities firms in the first quarter of 2023 was 516.45 billion yuan, a year-on-year turnaround, accounting for 4% of the adjusted income; The annualized return on proprietary investment reached 8.4%, up 8.<> percentage points year-on-year. (CBN)