Home » During the year, the top ten securities companies accounted for nearly 17 billion yuan of IPO underwriting and sponsorship income.

During the year, the top ten securities companies accounted for nearly 17 billion yuan of IPO underwriting and sponsorship income.

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During the year, the top ten securities companies accounted for nearly 17 billion yuan of IPO underwriting and sponsorship income.

Original title: During the year, the top ten brokers in the IPO underwriting and sponsorship income of nearly 17 billion yuan accounted for 70%

Source: Securities Daily

Our reporter Zhou Shangdian

The concentration of investment banking business of securities companies is constantly improving, and the head advantage is obvious. Since the beginning of this year, the IPO underwriting and sponsoring income of securities companies has reached nearly 17 billion yuan, and the top ten securities companies have swept 70% of the income.

However, opportunities and challenges coexist. While the business has developed rapidly and achieved outstanding results, a series of problems such as insufficient due diligence and “cheating” of insurance agents have gradually been exposed. The regulatory authorities have continuously strengthened the penalties for investment banking business. The quality of practice still needs to be continuously improved.

Securities brokerage investment banking business

Increased concentration

According to Wind data, the IPO underwriting and sponsoring income of securities companies reached nearly 17 billion yuan during the year, of which CITIC Securities, China Securities Construction Investment, Haitong Securities, CICC, Huatai United, Guotai Junan, Minsheng Securities, China Merchants Securities, Everbright Securities, Dongxing Securities underwriting and sponsorship income (including joint ventures) were 2.291 billion yuan, 2.063 billion yuan, 1.712 billion yuan, 1.699 billion yuan, 1.143 billion yuan, 1.021 billion yuan, 571 million yuan, 511 million yuan, 444 million yuan, and 385 million yuan respectively. 70% of the investment banking business income of securities firms.

Data show that since the beginning of this year, securities companies have served 228 companies to complete A-share IPOs (calculated based on the issue date), with a total fundraising of 342.531 billion yuan, a year-on-year increase of 2.7%. Among them, securities companies have obtained IPO underwriting and sponsorship income of 16.76 billion yuan, a year-on-year increase of 3.7%.

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From the perspective of the number and amount of underwriting by sponsors, leading brokerages have obvious advantages, and business concentration has accelerated. Six securities firms including CITIC Securities, China Securities Construction Investment, CICC, Haitong Securities, Huatai United, Guotai Junan and other 6 securities firms have sponsored more than 10 IPOs. The amount raised accounts for half of the market share.

In this regard, Gao Chao, chief analyst of the non-banking financial industry of Kaiyuan Securities, said, “Since the pilot of the registration system on the Science and Technology Innovation Board and the ChiNext Board, the improvement of issuance efficiency has directly benefited the large investment banking business of securities companies, and the net profit of large investment banking business has increased year-on-year. In terms of investment banking business, securities firms have sufficient project and manpower reserves and strong professional strength, which will benefit them even more.”

KPMG said that while the investment banking business of securities companies has achieved outstanding results, it also faces three major challenges: the acceleration of industry concentration, the increasing responsibility of sponsors, and the further adjustment of incentive and restraint mechanisms for securities companies.

At present, the number of Baodai has been greatly expanded to 7,518. From the perspective of comprehensive practice information, according to the latest “Classification List A of Sponsor Representatives” by the China Securities Association, there are 205 insurance agents with more than 10 sponsor projects, and there are 205 insurance agents with no bad integrity information and the level evaluation test meets the basic requirements 7250 people, the overall specialization characteristics are remarkable.

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However, 241 Baodai were also punished for violating the company system, self-discipline rules, regulatory provisions, laws and regulations, etc. 26 Baodai failed to meet the basic requirements in the professional ability level evaluation test, and there were even Baodai “cheating” incidents. On the 8th, the Jiangsu Securities Regulatory Bureau took the regulatory measure of issuing a warning letter to a certain insurance agent, because it participated in cheating in the securities market knowledge test in the process of conducting counseling work.

13 securities firms apply for IPO projects

The rejection rate is above 20%

Since the beginning of this year, the regulatory authorities have issued warning letters to a number of securities companies, and 41 insurance agents of 17 securities companies have also been announced to be subject to administrative supervision measures, industry self-regulatory organization disciplinary measures or self-discipline management measures. Among the illegal information involving investment banking business, it mainly involves issues such as failure to perform relevant duties diligently and dutifully in IPOs, low quality of sponsorship projects, and insufficient due diligence.

At the same time as the rapid development of investment banking business, the penalties imposed by the regulatory authorities on securities investment banks have been continuously strengthened, and the cases of “double penalty” against institutions and individuals have also continued to increase. In May, the China Securities Regulatory Commission issued the “Guidelines for On-site Inspection of Securities Companies’ Investment Banking Business Internal Control”, which identified five situations that should be inspected, including high rejection rate of investment banking projects, low evaluation of investment banking practice quality, and negative public opinion. Large number or great influence, high default rate of underwriting corporate bonds or managing asset securitization projects, and taking major regulatory measures or administrative penalties due to violations of laws and regulations in investment banking business.

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So far, from the perspective of the rejection rate of IPO application projects, since the beginning of this year, a total of 13 securities firms have had a rejection rate of more than 20%, of which 2 securities firms have a rejection rate of 100%, including CITIC Securities, CITIC Construction Investment, and Minsheng. The withdrawal rate of 7 securities firms, including securities, was within 5%. Overall, the leading brokerages still have obvious advantages in the investment banking business, which can maintain a low withdrawal rate while having a large number of projects.

Bo Xiaoxu, an analyst at AVIC Securities, said, “Recently, the supervision has strengthened the supervision and punishment of securities companies’ domestic and overseas business development, which will have a certain impact on the development of securities companies’ business in the short term; in the long run, companies with strong capital strength and strong risk management and control capabilities will have a certain impact. Leading brokers will adapt more quickly to the new regulatory environment.”Return to Sohu, see more

Editor:

Statement: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

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