The “guarantee + follow-up” of the science and technology board is one of the most concerned topics of the current brokerage.
At the end of 2017, the total assets of China's securities industry were 6.19 trillion yuan, only slightly higher than the United States.GoldmanThe total assets of a group company. For a long time, China's securities industry has been small in scale, low in concentration, serious in business homogeneity, and highly dependent on secondary market conditions. It is expected that the major reform opportunities in the capital market will be improved by establishing the science and technology board and the pilot registration system.
Market-based flowers can only be produced on market-based soils. In the process of market-oriented value-oriented science and technology reform and registration system reform, especially the series of innovative system design, which is represented by “sponsorship + follow-up”, will strengthen the capital constraints of securities firms. Compliance constraints, reputation constraints and business model constraints system, to promote brokers to achieve differentiated development by adjusting the strategic layout, using business transformation and upgrading, and tearing away the label of “depending on the day”. With it, there is a test of the true level of the brokerage.
"Homogenization" is still serious
Recently, the Securities Industry Association announced the operation of securities companies in the first quarter of 2019. The overall revenue of brokerages was 101.894 billion yuan, a year-on-year increase of over 50%, and a net profit of 44 billion yuan, a year-on-year increase of nearly 90%. From the business sector, self-operated income jumped to the top of net income, while brokerage, investment banking, asset management and other businesses all experienced a downturn, facing greater transformation pressure.
In April, the A-share market retreated, and the market fell back after the high on April 8. It fell sharply in the latter half of the year and fell below the 3000 mark on the 30th. The turnover also shrank significantly. Correspondingly, the performance of 35 listed brokers who have disclosed their April results is heavily dependent on the secondary market. The operating income has decreased by 40%, and the net profit has fallen by more than 50%, a decrease of 55.07%.
The transformation is particularly important in the face of brokers with serious homogenization and excessive reliance on brokerage business. The best opportunity for transformation is coming with the establishment of a science and technology board and a pilot registration system on the Shanghai Stock Exchange.
"Sponsor + follow-up" touched the pulse
The policy of issuing and underwriting the science and technology board stipulates that the science and technology board will try the follow-up system of the relevant subsidiaries of the sponsor institution. The relevant subsidiary established by the issuer's sponsor institution or other related subsidiaries established by the securities company that actually controls the sponsor institution shall participate in the issuance of the strategic placement and set a sales restriction period for the allocated shares.
The corresponding implementation rules stipulate that the alternative investment subsidiary of the sponsor institution shall have a 2%-5% ratio of the issuer's follow-up investment, and the proportion of the investment shall be confirmed in four grades according to the scale of the enterprise's issuance, and the investment amount shall never exceed 40 million yuan. Up to 1 billion yuan.
This means that the mode in which the sponsor institution earns a sponsorship fee will not work in the science and technology sector. The broker sponsorship and investment mechanism not only tests its capital strength, underwriting ability, but also tests its ability to select sponsorships, issue pricing, and internal coordination mechanisms.
Specifically, in addition to the capitalization of the sponsorship project, the brokerage firm also faces the risks and pressures brought by the uncertainty of the management after the listing of the sponsorship project. The brokerage sponsorship contract will pay more attention to the choice of the quality of the enterprise. At the same time, in order to prevent the company from changing its performance after listing, brokers must do a good job of follow-up supervision to help enterprises strengthen their core competitiveness.
“We don’t have the impulse to make the most of the more than 100 companies that have applied for the board, and we only have 7 or 8 projects, which is far lower than other brokers in the same ranking.” The investment bank of a large brokerage in Shanghai is responsible for The person told reporters. In his view, the qualification of the sponsorship project under the investment mechanism is far more important than the number of enterprises to be declared. If the follow-up enterprise development is unfavorable, the sponsorship fee may not be able to make up for the losses caused by the investment.
Different from the domestic brokerage business, nearly half of the source brokerage business, foreign mature brokerage income sources are more diversified, brokerage business accounted for about 30%, dividend income, self-operated, asset management and other businesses account for a large proportion of income composition. In addition to the underwriting business, the investment banking business has more revenues from specialized businesses such as mergers and acquisitions, financial management, and consulting services.
Bundle of interests boosts confidence
Coincidentally, a similar model of interest bundling has played a huge role in building a common interest base and boosting investor confidence in the public fund industry.
In 2012, in the dilemma of the new fund caused by the downturn, Tianhong Fund set up the first sponsored fund. The sponsored fund share not only has the fund company's own funds to subscribe, but also the fund managers and other company employees to participate, and the investment The share lockout period is up to three years. In the prevalence of sponsored funds, large sums of money and investment were commonplace, and even the emergence of the same funded fund of all employees of the fund company.
The emergence of sponsored funds is a useful attempt by fund managers and investors to share risks and benefit sharing models. It also highlights the affirmation of fund companies and fund managers on their own asset management capabilities. The launch of this product has had a certain impact on the ranking of fund company asset management.
Similarly, in addition to the risk sharing and benefit sharing between the sponsor institution and the investor, the starting point of the science and technology investment and investment system also reflects the confidence of the sponsor institution in the quality of its sponsorship and its development prospects. Securities companies are a rare opportunity to seize the sponsorship and investment mechanism. The selection of sponsorship projects will grow together with the enterprises, or the quality of the “salvage” science and technology board will have a different impact on their future.
The establishment of the science and technology board and the pilot registration system, a major reform of the capital market, is changing the future of the industry. The future of a particular brokerage is being shaped by what it is doing at the moment.
(Article source: brokerage China)