reporter | Chen Jing
brokerage interim report has been released. What is the "answer" of investment banking business lines?
According to Choice Financial Terminal statistics, the overall revenue of securities investment banks in the first half of 2022 was stable, with the net income of 41 listed securities investment banks reaching 25.909 billion yuan, a slight decrease of 2.50% year-on-year from 26.574 billion yuan in the same period last year. Among them, the top ten securities companies in the industry accounted for more than 70% of the revenue, while the three leading securities companies, including CITIC Securities , , CITIC Construction Investment Securities , and CICC, had revenue of 8.966 billion yuan, accounting for nearly 40%.
At the same time, the investment banking business of securities companies is also showing a "ice and fire". The investment banking business revenue of most leading securities companies has maintained growth, but the overall performance of small and medium-sized securities companies has dropped significantly, and the difficulty of opening the business has increased significantly.
As 2022 enters the second half of the year, the reform of the stock registration system has been steadily promoted, and policy favorable policies have frequently appeared. Some securities firm research reports pointed out that the normalization of IPOs will bring opportunities to securities firm investment banking business, and securities firms with advantages in investment banking business will benefit even more.
CITIC Securities' investment bank won the top spot in revenue, and the "Three Chinese and One China" pattern was broken
In the first half of 2022, the competition among listed securities companies' investment banking businesses was fully demonstrated, and it was more prominent among the leading securities companies.
statistics show that the " Matthew effect " of securities investment banking business continues to be highlighted. In terms of investment bank revenue, CITIC Securities won the championship with 3.453 billion yuan, CITIC Construction Investment and CICC ranked second and third respectively, achieving revenue of 2.832 billion yuan and 2.681 billion yuan respectively.
investment banks have revenues of over 2 billion yuan, including Haitong Securities (2.435 billion yuan) and Guotai Junan (2.074 billion yuan). These two brokerages and the "Three Middle School" ranked in the top five, achieving a total net income of 13.474 billion yuan, accounting for half of the total revenue of 41 brokerages.
In addition, the top ten securities firms in investment bank revenue include Huatai Securities (1.691 billion yuan), Oriental Securities (859 million yuan), Shenwan Hongyuan (813 million yuan), Everbright Securities (808 million yuan), and China Merchants Securities (804 million yuan). In terms of growth rate of
, Tianfeng Securities investment bank revenue growth of 53.79% ranked first, Dongxing Securities , CITIC Construction Investment Securities, Guolian Securities all rose by more than 40%. There are also Founder Securities , Great Wall Securities , Caida Securities, China Galaxy , Huaan Securities , and Guotai Junan ranked among the top gainers.
Revenues rank in the back Northeast Securities , West China Securities , Zhejiang Securities , Pacific, Zhongyuan Securities and other securities companies, whose investment banking business revenue fell by more than 50% in the first half of the year. Industry insiders believe that this phenomenon reflects to a certain extent that the performance differentiation between securities firms is further intensifying, presenting a situation where the strong are always strong.
It is worth noting that in addition to the decline in the income of small securities companies and investment banks mentioned above, the income of medium and large securities companies such as Zhongtai Securities (-34.67%), Guosen Securities (-30.65%), Industrial Securities (-22.67%), Everbright Securities (-23.61%), and China Merchants Securities (-15.10%) has also declined significantly.
seat change has also become a major highlight in the investment banking business revenue competition in the first half of the year. Specifically, CITIC Construction Investment Securities, Guotai Junan, Oriental Securities, and Shenwan Hongyuan, which have traditional advantages in investment banking business, have all achieved ranking improvements.
, while Huatai Securities, CICC, Haitong Securities, Everbright Securities, China Merchants Securities and Guosen Securities saw a decline in rankings. It is worth noting that Huatai Securities fell out of the top five, breaking the previous "three Chinese and one China" pattern.
Although the difference in net income of securities investment banks in waist-level securities companies is small, the rotation of rankings is more obvious. In the first half of the year, Tianfeng Securities' investment banking business revenue was 562 million yuan, an increase of 53.79% year-on-year, up 5 places, ranking 14th. Dongxing Securities achieved investment banking business revenue of 570 million yuan, an increase of 41.55% year-on-year, ranking 13th.
Some companies are happy and some are sad. Among the 41 brokerage firms, the investment banking business of West China Securities and Northeast Securities suffered a Waterloo, falling 10 and 4 respectively, and the ranking fell to the back of the industry.
2020 and 2021 are the year of investment banks. Policy dividends such as registration system , new refinancing regulations have brought huge opportunities. The leading brokerage firms are undoubtedly the biggest beneficiaries of this opportunity. Overall, the living space of small and medium-sized brokerage firms is being compressed.
Non-bank analyst Xu Yingying of Industrial Securities believes that the significant increase in equity financing concentration in recent years is the main reason for the increase in investment banks' revenue concentration. As for the domestic market, the competitive landscape has not yet stabilized, and the leading brokers have shown certain competitiveness, but the pricing power is not high. The current domestic equity financing market concentration has a trend of increasing, and there is room for improvement. In the future, the leading securities companies will compete, but the business space of non-leading securities companies in this field will be further squeezed.
CITIC , CICC and other investment banking teams continue to expand, and Everbright , West China and other insurance agents are clearly lost
0 investment banking business competition is not only reflected in the increase in investment banking business revenue and market share, but also in the fluctuation and changes in the number of insurance agents in various securities companies.
The increase or decrease in the number of insurance teams can be regarded as an important indicator of the rise and fall of investment banking business. Choice Financial Terminal shows that the number of insurance agents with a large increase in the first half of this year includes CICC, CITIC Securities, CITIC Construction Investment Securities, Guosen Securities, Haitong Securities, etc., and the number of insurance agents with a large decrease in the number of insurance agents is Ping An Securities , Guohai Securities , Zhongyuan Securities, Everbright Securities, West China Securities, etc.
Overall, the investment banking business has significantly increased its investment banking business in the first half of the year, and the investment banking business has been relatively smooth. For example, securities companies such as CITIC Securities, CITIC Construction Investment and CICC not only have many projects, but also have high pass rates. In the first half of this year, IPO projects that have been successfully sponsored (including joint) were 18.5 orders, 11.5 orders and 9.5 orders respectively, with a pass rate of 100%.
, and securities firms with obvious outflow of insurance personnel, experienced "setbacks" to varying degrees in investment banking projects in the first half of the year. For example, the initial public offering of Guangdong Yangshan United Precision Manufacturing Co., Ltd. of Everbright Securities was suspended (after approved); China Merchants Securities Jiangsu Dafeng Rural Commercial Bank failed to pass the meeting smoothly. In addition, the investment banking business of West China Securities, Guohai Securities, Northeast Securities and other securities companies has also received regulatory fines.
"In the past two years, the investment banking business of small and medium-sized securities companies has not been easy to do, especially resources and markets are increasingly inclined to the top, and the top securities companies naturally seize opportunities to expand their teams." An investment banker in Beijing told reporters.
