Brokerage companies are in intensive "supplement"!
A few days ago, Haitong Securities issued an announcement stating that the CSRC agreed to the company's registration application for the public issuance of corporate bonds of no more than 60 billion yuan to professional investors. In addition, the application status of Industrial Securities, Caida Securities and Southwest Securities' plans to issue corporate bonds has also been updated.
Wind data shows that as of June 12, the number of bonds issued by securities companies this year has been 236, with an issuance scale of 458.865 billion yuan.
In the view of industry insiders, the degree of institutionalization of the securities industry is gradually increasing, the development of capital-heavy business accelerates capital consumption, and the demand for securities companies to increase capital and replenish blood is increasing day by day.
Optimize the company's debt maturity structure
Haitong Securities submitted the exchange's prospectus to the exchange shows that the total amount of bond registration this time will not exceed 60 billion yuan (including 60 billion yuan), and will be issued in installments.
Regarding the use of funds raised, Haitong Securities stated that it plans to use no less than 40 billion yuan of funds raised to repay corporate bonds that expire or repurchase, including but not limited to corporate bonds, subprime bonds, short-term corporate bonds, etc.
"In the future, securities companies with strong wealth management, institutional services, capital intermediary capabilities, a complete international layout, stronger technological empowerment, and excellent corporate culture will have stronger market competitiveness. In order to implement the strategic coordinated development goals, the development of the company's related businesses faces a large capital demand." Haitong Securities stated that it plans to use the remaining funds raised in this bond to supplement the working capital required for the company's capital intermediary business and other daily production and operation.
Haitong Securities emphasized that the issuance of this bond will optimize the company's debt maturity structure to a certain extent, further enhance the company's short-term debt repayment ability, provide stable medium- and long-term financial support for the company's business development, and help improve the company's profitability and core competitiveness.
The securities industry continues to "supplement"
It is not only Haitong Securities, the leading securities company that has increased capital and supplemented blood. Exchange data shows that Guotai Junan and Huatai Securities registered 60 billion yuan of corporate bonds for public issuance to professional investors in 2021 and 2022 respectively, while CITIC Securities registered 80 billion yuan of corporate bonds for public issuance to professional investors in 2020, and all varieties are "small public offerings".
In addition, exchange data shows that recently, the corporate bond projects of Industrial Securities and Caida Securities have shown that they have "feedback", with the planned issuance amounts of 15 billion yuan and 7.5 billion yuan respectively. The status of Southwest Securities' corporate bond project is shown as "Submit Registration", with the planned issuance amount of 6 billion yuan. The amounts of registered and effective corporate bond projects of CICC Wealth Securities and Dongxing Securities are planned to be issued at 15 billion yuan and 17 billion yuan respectively. Galaxy Securities' corporate bond project status is shown as "accepted", with the planned issuance amount of 30 billion yuan.
In addition to corporate bonds, securities companies also often use tools such as permanent subordinated bonds, subordinated bonds, short-term corporate bonds, etc. Private placement and share issuance are also common methods of financing for securities companies. Wind data shows that as of May 13, many securities companies including Guojin Securities, Zhongyuan Securities, Guohai Securities, Oriental Securities, Caitong Securities, and CITIC Securities have disclosed the latest progress in additional issuances or share issuance this year, including the launch of a new large-scale private placement or share issuance plan, and the approval of the original plan.
industry is in the process of non-directional transformation of heavy asset business
Under the current regulatory system with net capital and liquidity as the core, capital strength has become one of the key factors for securities companies to enhance their competitive advantages. Abundant capital can not only consolidate the foundation for securities companies' competitive strength, but also provide impetus for securities companies to achieve sustainable and healthy development.
Zhao Ran, chief analyst of CITIC Construction Investment's non-bank finance, said that in the process of the transformation of channel business to trading business, institutional business plays a core role. Currently, China's securities companies are in the process of non-directional transformation of heavy asset business. Developing various innovative tools and meeting the needs of institutional investors is the only way to develop into a "aircraft carrier-level securities company".
Zhejiang Securities non-bank financial team said that with the gradual superposition of policies to stabilize growth, the securities sector is expected to usher in a rebound, and wealth management securities companies are still the main line of the short-term rebound.It is expected that securities firms will experience significant performance differentiation in a volatile market environment in 2022, and the ability of institutionalized business and comprehensive balance will become a performance stabilizer, and they will continue to recommend low-valuation leaders with a higher degree of institutionalization.
Edited by: Zheng Yashuo
