According to the Financial Associated Press (Shenzhen, reporter Cheng Mengqi), August this year coincides with the 30th anniversary of the establishment of the Securities Association of China. The scale, strength and profitability of China’s securities industry has been greatly improved, and the total number of securities practitioners registered in the employee management system is nearly 36. Ten thousand people, and the ability of cross-border financial services has been significantly improved.
Thirty and “established”: total assets exceed 10 trillion yuan, rich business forms, and improved profitability
On August 28, 1991, the China Securities Industry Association was announced in the Great Hall of the People. On August 28, 2021, the China Securities Association will celebrate its thirtieth birthday. More than a hundred securities companies will use their own growth to celebrate the “Thirty Years” of the China Securities Association.
Thirty years have witnessed the substantial and stable growth of the securities industry. Today, the scale, strength and profitability of the securities industry have been greatly improved. As of the end of July 2021, there are 140 securities companies in the securities industry with total assets exceeding 10 trillion yuan.
At the same time, securities companies have gradually diversified their business forms, diversifying from traditional brokerage, investment banking, and proprietary business to asset management, margin financing and securities lending, derivatives, over-the-counter business, and cross-border business. According to the China Securities Association’s 2020 operating performance ranking of securities companies, using 102 securities firms as a model, their total annual net profit is 170.8 billion yuan. In 2019, the statistics are based on 98 securities companies, and their total annual net profit is 124.4 billion yuan. In 2018, the statistics also used 98 securities companies as a model, and their total annual net profit was 55.1 billion yuan. In the past three years, the profitability of securities companies has continued to rise, and there has been a tremendous increase.
According to data from the China Securities Association, as of June 30, 2021, the total assets of securities companies were 9.72 trillion yuan, the net assets were 2.39 trillion yuan, and the net capital was 1.86 trillion yuan. The balance of customer transaction settlement funds (including credit transaction funds) ) 1.79 trillion yuan, and the total principal of entrusted management funds is 10.45 trillion yuan.
Thirty and “Li”: Enhancement of Cross-border Financial Service Capability
In the process of internationalization of the securities industry, “welcoming in” is as important as “going out”.
According to the statistics of the Cailian News Agency, 9 foreign-owned securities companies include Credit Suisse Securities, Goldman Sachs Gao Hua Securities, UBS Securities, Morgan Stanley Huaxin Securities, JPMorgan Chase Securities (China) Co., Ltd., Nomura Orient International Securities, HSBC former Hai Securities, DBS Securities, Daiwa Securities (China). Among them, the China Securities Regulatory Commission has recently approved the filing of JPMorgan Chase International Capital Co., Ltd.’s becoming the sole shareholder of JPMorgan Chase Securities (China), which means that JPMorgan Chase Securities (China) will become China’s first wholly foreign-owned securities company.
In recent years, the internationalization of Chinese-funded securities firms with Hong Kong, China as the “bridgehead” has achieved remarkable results. “Relying on the local, based in Hong Kong, and radiating the world” is a unique path for Chinese-funded securities firms to “go global”.
As of July 2021, the China Securities Regulatory Commission has approved 34 securities companies to set up subsidiaries overseas, with 3 newly added since 2019; approved the establishment of 17 foreign-owned securities companies, including 9 foreign-owned securities companies. In 2019 Since then, 7 new ones have been added. 15 securities companies were listed on Hong Kong stocks, of which 14 were “A+H”-listed securities companies, and 6 securities companies’ international business subsidiaries were listed separately in Hong Kong.
According to the China Securities Association data, in 2020, 34 Hong Kong subsidiaries will achieve operating income of 33.397 billion yuan, an increase of 11.06%; net profit of 5.998 billion yuan, an increase of 65.12%; the overall net interest rate of subsidiaries is 17.96%, a year-on-year increase of 5.88 percentage points , Performance growth is remarkable.
Nowadays, the top brokerage companies have achieved remarkable results in “going out”. They have not only successfully settled in the “bridgehead” Hong Kong, but also extended their business to emerging markets such as Southeast Asia, India, South America, and even Singapore, London and New York. The world financial center also has a beautiful figure of Chinese securities firms.
On January 15, 2021, the China Securities Regulatory Commission implemented the new “Securities Law”, and the establishment of subsidiaries by securities firms overseas has clearly changed from an approval system to a filing system. In addition, the previously rigid condition that the net assets of securities companies that set up overseas subsidiaries are not less than 6 billion yuan have been cancelled in the new regulations. This is a major benefit for brokerages who want to expand into overseas markets, especially for small and medium-sized brokerages to “go out to sea”, which has since gained more support.
Thirty and “profit”: 247 organizations have a total of nearly 360,000 employees
Thirty years of development has not only formed a huge blue ocean, but also cultivated batch after batch of securities industry personnel. The securities industry has provided more than 300,000 jobs. As of the end of July 2021, a total of 247 institutions have registered their practitioners in the Practitioner Management System of the Association, including 129 securities companies, 11 securities asset management companies, and securities investment consulting institutions 92, 15 securities rating agencies. The total number of securities practitioners registered in the Practitioner Management System is 359,130.
As of July this year, the China Securities Association has 475 members, including 140 legal members (securities companies), 255 ordinary members (securities investment consulting companies, securities credit rating agencies, private equity and alternative subsidiaries of securities companies), and special members (Securities trading venues, regional equity market operating institutions, local securities industry self-regulatory organizations, etc.); a total of 350 observers (credit promotion agencies, offline institutional investors, overseas securities representative offices in China, etc.) have become China An extremely important part of the financial system.
Thirty years is just a starting point. The China Securities Association stated that in the future, under the guidance of the China Securities Regulatory Commission, the association will coordinate and grasp the relationship between risk prevention and control and innovative development, further improve the normalized service mechanism that guides the innovation and development of the industry, and actively guide the securities industry to complete, accurate and comprehensive implementation New development concepts, integrity, innovation, and stability, and constantly improve the ability and level of serving the national strategy, serving the real economy and residents’ wealth management needs, and striving to promote the high-quality development of the securities industry.