brokerage interim reports are intensively disclosed. According to Wind statistics, 48 A-share listed securities companies have disclosed their "report cards" for the first half of 2021. Among them, self-operated business has become a watershed in the performance of securities companies, while wealth management business is highly favored by the market.
Overall, securities companies performed differently in the first half of the year. CITIC Securities , Haitong Securities , Guotai Junan , Oriental Securities , Guosen Securities and other leading brokers have achieved double growth in revenue and net profit. Among them, CITIC Securities' revenue reached 37.7 billion yuan, and its net profit attributable to shareholders also reached 12.2 billion yuan, while CITIC Construction Investment 's net profit attributable to shareholders declined by more than 1%.
The industry said that there are four driving forces for the growth of securities companies in the first half of the year. First, the stock market trading sentiment remains active, and the brokerage business income and interest income of securities companies have increased year-on-year; second, the equity-based public fund market has developed rapidly, and the brokerage agency financial products revenue and public fund management revenue have increased year-on-year; third, the stock bond primary market issuance is active, and the securities companies' investment banking business revenue has increased year-on-year; fourth, the futures market develops rapidly, and the brokerage's "other business revenue" has increased year-on-year.
Performance differentiation : CICC stall , Matthew effect is not working ?
stamp duty continues to increase. The development of China's capital market in 2021 continued the market trend last year, and most securities companies also made a lot of money. According to data from the China Securities Association, in the first half of the year, 139 securities companies achieved operating income of 232.414 billion yuan, a year-on-year increase of 8.91%; and achieved net profit of 90.279 billion yuan, a year-on-year increase of 8.58%.
Wind data shows that 48 A-share listed securities companies have disclosed their "report cards" for the first half of the year, and 13 securities companies have revenues exceeding 10 billion yuan.
CITIC Securities is still firmly in the first half of the year, achieving revenue of 37.7 billion yuan, close to 70% of the year in 2020. Haitong Securities and Guotai Junan followed closely with revenue exceeding 20 billion yuan. Huatai Securities, GF Securities , Shenwan Hongyuan , , and , China Galaxy 4 brokerage firms have revenues ranging from 15 billion to 20 billion yuan. CICC , China Merchants Securities , Oriental Securities, CICC, Guosen Securities and Industrial Securities revenues ranged from 10 billion to 15 billion yuan.
In terms of revenue growth rate, Xiangcai shares 's revenue growth rate was the largest, reaching 403%, and Oriental Fortune 's revenue ranked second with a 102% increase. Among the top ten securities firms in revenue, the four securities firms, CITIC Securities, Guotai Junan, CICC and Oriental Securities, had the highest growth rate, all of which were around 40%. Compared with
, the industry's performance is significantly differentiated. Currently, the top ten securities companies in the disclosed performance have achieved a total revenue of 192.649 billion yuan, contributing more than 60% of listed securities companies.
It is worth noting that among the top brokers, Haitong Securities' performance ranking quickly jumped from 6th place last year to 2nd place at the moment, occupying the second place at the top.
Oriental Securities and CICC also achieved a jump in performance. The former ranked 12th in revenue ranking in 2020, and the latter ranked 10th in revenue last year. In the first half of this year, both sides increased their rankings and squeezed into the top ten respectively. Guosen Securities and CICC fell from the top ten, among which CICC saw revenue rankings drop from 4th to 11th.
During the same period, the revenue of Northeast Securities , Shanxi Securities , Tianfeng Securities , China Securities , Huaan Securities , Jinlong Shares , Huachuang Yangan, Huaxin Shares, and Guosheng Financial Holdings 9 listed brokers declined. Among them, Guosheng Financial Holdings' revenue fell by 95%, Jinlong Co., Ltd.'s revenue fell by 41%, and Northeast Securities' revenue also fell by 21%.
In terms of net profit, Zhongyuan Securities rose by as much as 642%, and the net profit attributable to shareholders of the four brokers, including Pacific Securities , Caida Securities, Founder Securities , and Oriental Fortune, doubled year-on-year. Among the leading brokers, the growth rate of net profit attributable to shareholders of GF Securities and CITIC Construction Investment was not satisfactory. The former net profit increased by only 2%, while the latter showed a decline of more than 1%.
During the same period, the net profit of Everbright Securities , Guojin Securities , Huaxi Securities 3 companies increased by single digits. In addition, the net profit attributable to shareholders of many listed securities companies such as Hongta Securities , Guohai Securities , Dongxing Securities , Shanxi Securities, Tianfeng Securities, Huaan Securities, Xiangcai Shares, First Entrepreneurship, Jinlong Shares, Huaxin Shares, Guosheng Financial Holdings and other listed securities companies declined to varying degrees.
brokerage performance revenue continues to grow , and 's leading brokerage business is more diversified
As one of the three traditional brokerage businesses, its performance continued to grow in the first half of this year. Data from the China Securities Association shows that in the first half of the year, the securities industry achieved net income from agency securities trading (including seat leasing for trading units) of 58.04 billion yuan, an increase of 10.95% year-on-year.
It is understood that handling fees and commissions are the main sources of income for securities brokerage business . According to Wind statistics, CITIC Securities' net income from agency trading securities business ranked first, reaching 6.742 billion yuan, followed by Guotai Junan with 4.238 billion yuan, with this income of five securities companies, China Galaxy, GF Securities, China Merchants Securities, Huatai Securities and Guosen Securities, exceeding 3 billion yuan. In addition, there are five securities firms, Shenwan Hongyuan, CICC, CICC, Haitong Securities and Founder Securities, which have revenues ranging from 2 billion to 3 billion yuan.
In terms of revenue share, the brokerage business revenue of small and medium-sized securities companies accounted for a higher proportion (net income/operating income of agency securities trading business), Founder Securities' brokerage business revenue accounted for half of the market, and Changjiang Securities' brokerage business reached 41%. In addition, the brokerage business of eight brokers including West China Securities, Jinlong Shares, Huaan Securities, and Hualin Securities accounted for more than 30%. However, Hongta Securities' brokerage business revenue only accounts for 3% of the total revenue. Among the top brokerage firms in
, Guosen Securities' brokerage business revenue accounted for the highest proportion of total revenue, reaching 31%; the brokerage business revenue of China Galaxy, China Merchants Securities and CITIC Construction Investment accounts for more than 20%, Guotai Junan and CITIC Securities' brokerage business revenue accounted for 19% and 18% respectively, and Haitong Securities' brokerage business revenue accounted for the lowest proportion, with only 11%.
It is worth noting that among the top brokerage firms, except for Huatai Securities, CICC, Oriental Securities and CICC, the proportion of brokerage firms' brokerage business has declined.
China Securities Association stated that over the past 30 years, securities companies' business forms have gradually become richer, from traditional brokerage, investment banking, and proprietary business to diversified developments into asset management, margin financing and securities lending, , derivatives, over-the-counter business, cross-border business, etc.
Proprietary business components watershed , Small and medium-sized brokerage firms plan to leverage the force to overtake
According to the association's data, in the first half of this year, the securities industry achieved securities investment returns (including fair value changes ) of 69.788 billion yuan, still exceeding brokerage business, ranking first. However, this data fell by 0.7% compared with the first half of 2020, that is, the securities investment income of securities companies in the first half of 2021 decreased by nearly 500 million yuan compared with the same period last year.
Judging from the financial report, the performance of securities firms' proprietary investment in the first half of the year has been quite different.
Beike Finance reporters According to the formula "Proprietary income = net investment income + net income from changes in fair value - investment income for joint ventures and joint ventures", CITIC Securities' proprietary business income is currently far ahead, reaching 11.429 billion yuan, and CICC and Huatai Securities ranked second and third with revenue of 8.163 billion yuan and 7.191 billion yuan respectively.
From the perspective of growth, the differentiation of proprietary business of listed securities companies has intensified, with varying changes. Among them, the proprietary business income of 23 securities companies has increased compared with the same period last year, and the proprietary business income of 17 securities companies has declined. Specifically, Oriental Fortune's proprietary business achieved a 300% growth, and the proprietary business income of Founder Securities, Pacific Securities and Xiangcai Shares doubled. The proprietary business revenue of leading securities companies such as Guotai Junan, China Merchants Securities, Guosen Securities, and CICC also achieved significant growth in the previous year .
Except for Guosheng Financial Holdings and Jinlong Co., Ltd., which had poor performance, Huaxin Co., Ltd.'s proprietary business revenue fell by 75% year-on-year. The proprietary business revenue of many securities companies such as Everbright Securities, Northeast Securities, Industrial Securities, Oriental Securities, CITIC Construction Investment, Zhejiang Securities , and GF Securities all declined by 20%-30%.
In terms of the proportion of proprietary business, in the first half of the year, CICC's investment income grew rapidly, and the proportion of proprietary business revenue reached 56% of revenue. Some small and medium-sized securities companies have achieved overtaking with the rapid development of proprietary business. The proportion of proprietary business of Southwest Securities also accounts for half of the proprietary business, and the proportion of proprietary business of Tianfeng Securities, Guolian Securities and Pacific Securities all accounts for more than 40%.
From the perspective of leading securities companies, in addition to CICC, Huatai Securities and China Merchants Securities account for a relatively high proportion of proprietary business revenue, 39% and 37% respectively. CITIC Securities, Haitong Securities, Guotai Junan and Shenwan Hongyuan account for about 1/3 of proprietary business revenue, and GF Securities, China Galaxy and Oriental Securities account for a relatively low proportion of proprietary business revenue, 22%, 20% and 15% respectively.
Investment banking business revenue Haitong Securities temporarily ranked first , , many securities companies' investment bank revenue declined
What are the changes in investment banking business? According to Wind data, Haitong Securities' investment banking business revenue ranking surpassed CITIC Securities, ranking first with 3.008 billion yuan, CICC ranked second with 2.825 billion yuan of investment banking business revenue, and CITIC Securities and CITIC Construction Investment followed closely with 2.616 billion yuan and 1.921 billion yuan respectively.
In terms of growth, Zhongyuan Securities' investment banking business revenue increased by 217% compared with the same period last year, and the investment banking income of Changjiang Securities and Guoyuan Securities increased by more than 90%; Oriental Fortune's investment banking business revenue was not worth mentioning compared with other businesses, but the increase reached 81%. In addition, the revenue of Shenwan Hongyuan, Zhongtai Securities and Zhejiang Securities increased by more than 50%.
It is worth noting that the revenue of investment banks of many securities companies also declined in the first half of 2021. Guosheng Financial Holdings fell the most, down 57%, followed by Jinlong Co., Ltd.'s revenue declined by 48%, and the investment performance of Tianfeng Securities, Huaan Securities and First Entrepreneurship fell by about 30%. Among the leading brokers of
, the investment bank revenue of GF Securities, China Galaxy and CITIC Construction Investment fell by 39%, 16% and 3% respectively. In addition, the revenue of investment banks of 14 brokerage firms including Dongwu Securities , Dongxing Securities, Shanxi Securities, Western Securities, and Guojin Securities all declined to varying degrees.
From the perspective of investment bank revenue share, for leading securities companies, investment bank business revenue is only a small part of their business revenue sources. The ratio of investment banking business revenue of leading securities firms such as CITIC Securities, Guotai Junan, China Merchants Securities, Oriental Securities, and Guosen Securities to total revenue is controlled within 10%, among which the investment banking business revenue of GF Securities and China Galaxy Securities accounts for only 1%.
Investment banking nobles CICC's investment banking business revenue accounted for the highest proportion, reaching 20%, and the investment banking business revenue accounted for a relatively high proportion, with the two accounting for 16% and 13% respectively.
Wealth management business has attracted much attention , public fund business has developed rapidly
The development level of securities companies' wealth management business has become the focus of market attention. In the first half of this year, securities companies' wealth management business continued to develop.
From the perspective of leading securities firms, CITIC Securities interim report shows that as of the end of June 2021, the company's wealth management account signed 17,000 customers, with more than 210 billion yuan in contracted customers; the number of company customers has exceeded 11.4 million, and the total scale of custodial customers has reached 9.7 trillion yuan.
The same is true for Guotai Junan. Continuous investment and reform have brought about rapid development of wealth management business. In the first half of the year, Guotai Junan's wealth management business revenue was 6.313 billion yuan, a year-on-year increase of 16.01%, accounting for 28.80% of the company's total revenue. Wealth management revenue has become its second largest source of income.
It is worth noting that public fund business, as an important indicator that reflects the wealth management level of securities companies, has also received key attention from the industry.
Wind data shows that only Tianhong Fund and E Fund , which have a net profit of more than 1 billion yuan in the interim report in 2020.According to the performance of fund companies disclosed in securities financial reports, the net profits of many securities-based fund companies such as E Fund, Huitianfu Fund , GF Fund , Huaxia Fund , and other securities-based fund companies exceeded 1 billion yuan, of which E Fund made 1.8 billion yuan in half a year.
In terms of growth rate, the net profit of Huitianfu Fund increased by as much as 140.8% year-on-year, E Fund Fund increased by 75.56% year-on-year, and the growth rate of Huaxia Fund and GF Fund were both around 40%. The performance of Penghua Fund, a subsidiary of Guosen Securities, was also quite impressive. In the first half of this year, Penghua Fund achieved revenue of 2.241 billion yuan and net profit of 614 million yuan, an increase of more than 60% year-on-year.
CICC analyst Zhao Ran said that there are four driving forces for the growth of securities companies in the first half of the year. First, the stock market trading sentiment remains active, and the brokerage business income and interest income of securities companies have increased year-on-year; second, the equity-based public fund market has developed rapidly, and the securities companies' agency financial product revenue and public fund management revenue have increased year-on-year; third, the stock and bond primary market issuance is active, and the securities companies' investment banking business revenue has increased year-on-year; fourth, the futures market has developed rapidly, and the securities companies' "other business revenue" has increased year-on-year.
Beijing News Shell Finance Reporter Hu Meng Editor Song Yuting Proofreading Yang Xuli
