China Fund News reporter Yan Ying
Listed securities firms are enthusiastic about refinancing. Recently, Industrial Securities launched a “10-for-3” allotment plan, aiming to raise more than 10 billion in funds, attracting industry attention. Since this year, seven listed securities firms have completed refinancing through private placement, rights issue, convertible bonds, etc. After the completion of the Industrial Securities allotment, the refinancing amount of listed securities companies during the year will exceed 80 billion yuan.
As resources in the industry gradually gather at the top, capital replenishment has become a powerful means for securities companies to improve their industry competitiveness. After raising a large amount of funds, relatively capital-consuming businesses such as margin trading and securities lending have become the focus of securities companies' efforts.
Industrial Securities’ tens-billion share placement is in progress.
The securities industry has another tens-billion financing plan in progress. This time, the protagonist is Industrial Securities.
Recently, Industrial Securities issued an indicative announcement on the allotment of shares, adopting an online pricing issuance method for all shareholders, and the allotment price is 5.2 yuan per share. The payment deadline for this rights issue is August 24. Industrial Securities will publish the results of the rights issue and resume trading on the next day.
Industrial Securities' existing total share capital is 6.697 billion shares, which will be placed at a ratio of 3 shares for every 10 shares. The total number of shares available for placement is 2.009 billion shares, and the total amount of funds to be raised is expected to be 10.447 billion yuan.
Regarding the use of funds, Industrial Securities stated that after deducting issuance expenses, it plans to use them all to increase the company's capital, supplement working capital, serve the development of the real economy and meet residents' wealth management needs, and comprehensively enhance the company's market competitiveness and risk resistance. In terms of
shareholder subscription, the Fujian Provincial Department of Finance, the largest shareholder of Industrial Securities, promised to subscribe in full in cash for alloted shares. At the same time, Industrial Securities' allotment of shares has also been popular among listed companies. On August 19, Longxi Co., Ltd. issued an announcement announcing its participation in the allotment of shares by Industrial Securities, and will participate in full with its own funds not exceeding 65.6602 million yuan.
Since this year, listed securities firms have frequently offered refinancing plans, and have frequently landed tens of billions of orders. Wind data shows that during the year, CITIC Securities , Orient Securities , and Caitong Securities have completed allotment financing, and the actual funds raised were 22.396 billion yuan, 7.172 billion yuan, and 12.715 billion yuan respectively.
In addition, Guojin Securities and Great Wall Securities both carried out private placement financing, with actual raised amounts of 5.817 billion yuan and 7.616 billion yuan respectively. China Galaxy and Zheshang Securities completed the issuance of convertible bonds, issuing 7.8 billion yuan and 7 billion yuan respectively. Coupled with the tens of billions of funds replenished by Industrial Securities, the refinancing amount of listed securities companies during the year exceeded 80 billion yuan. Regarding the follow-up financing plans of
, Centaline Securities and Guohai Securities announced private placement plans, which showed that the two securities companies planned to raise 7 billion yuan and 8.5 billion yuan respectively. They are currently in the stage of approval by the shareholders' meeting.
Capital-heavy business has become the main track
Under the current background of increasing competitive pressure in the securities industry, capital supplement has become an effective means for securities companies to improve their competitiveness. Vigorously developing capital-heavy businesses such as capital intermediary business has become a key focus for securities companies.
Take the Industrial Securities allotment as an example. It plans to use no more than 7 billion yuan to develop margin trading and securities lending business, accounting for 1/2 of the total financing plan. The remaining funds will be used for investment banking business , investment trading business, and information systems. and compliance risk control, etc.
Industrial Securities stated that the margin trading and securities lending business is conducive to improving investors’ capital utilization and can provide investors with diversified investment opportunities and risk avoidance methods. It can expand targets at the regulatory level, optimize securities lending transaction rules, and relax Driven by policies such as Science and Technology Innovation Board and Growth Enterprise Market stocks price limits, they are increasingly favored by high-net-worth customers and professional institutional investors.
In March this year, CITIC Securities’ H-share rights issue raised a total of HK$6.04 billion. Adding on the previous A-share rights issue, a total of 27.33 billion yuan was raised. Of the total capital raised by CITIC Securities, which was previously expected to be no more than 28 billion yuan, 19 billion yuan is planned to be invested in capital intermediary business.
In addition, Great Wall Securities plans to invest 5 billion yuan in capital intermediary business, Guojin Securities will invest 2 billion yuan, and Caitong Securities will invest 2 billion yuan, all accounting for an important proportion of the financing plan.
The non-bank financial team of AVIC Securities pointed out that from a long-term development perspective, the transformation of securities firms’ wealth management and capital intermediary business will still be important growth points for future securities firms’ performance. Based on the continued growth in the number of A-share institutional investors, the capital intermediary business of institutional transactions has become an important driving factor for securities firms to expand their balance sheets.
In recent years, the income sources of the securities industry have been relatively concentrated, business homogeneity has been obvious, and competition in traditional business tracks has been extremely fierce. Especially in the current transformation of wealth management, capital intermediary businesses such as margin trading and securities lending have become a must-have for military strategists. As a capital-consuming business, capital intermediary business relies more on stable long-term funding supply. With convenient refinancing conditions, listed securities firms can quickly expand the market with their financial advantages.
