The performance of listed securities firms stabilizes and recovers in the third quarter, and the securities industry welcomes a recovery
2024-11-25
The third quarter report of listed securities firms has been disclosed as closed. With the release of the new "National Nine Measures" and the implementation of a package of incremental policies, the performance of listed securities firms has generally rebounded, and the decline in revenue and net profit has narrowed. Especially in the third quarter, the performance has improved significantly, and the securities industry has ushered in a recovery. According to statistics from Tonghuashun, in the first three quarters of this year, the decline in revenue of 43 listed securities firms narrowed, with a total operating revenue of 371.428 billion yuan, a year-on-year decrease of 2.75%; The net profit attributable to the parent company was 103.449 billion yuan, a year-on-year decrease of 5.93%. Top securities firms have demonstrated stable performance, with most achieving dual growth in revenue and net profit. Among them, CITIC Securities is far ahead, with revenue and net profit ranking first, achieving operating revenue of 46.142 billion yuan, a year-on-year increase of 0.73%; Achieve a net profit attributable to the parent company of 16.799 billion yuan, a year-on-year increase of 2.35%. Following closely behind, Huatai Securities, Guotai Junan, and China Galaxy Securities achieved operating revenues of 31.424 billion yuan, 29 billion yuan, and 27.086 billion yuan, respectively, with year-on-year growth of 15.41%, 7.29%, and 6.29%; The net profit attributable to the parent company was 12.521 billion yuan, 9.523 billion yuan, and 6.964 billion yuan, respectively, an increase of 30.63%, 10.38%, and 5.46% year-on-year. When it comes to the reasons for the performance growth, Wang Sheng, Chairman of China Galaxy Securities, stated at the performance briefing that the trading activity in the A-share market has significantly increased, with a significant increase in daily turnover. Especially at the end of September, regulatory authorities issued a package of policies, releasing heavyweight positive signals from various aspects such as monetary policy, fiscal policy, and market reform, greatly boosting market confidence, guiding funds into the market, opening up an upward channel for industry prosperity, and bringing positive impacts to the entire securities industry. In contrast, the performance fluctuations of small and medium-sized securities firms are more pronounced, showing greater elasticity. About 10 small and medium-sized securities firms have achieved dual growth in revenue and net profit. Among them, Dongxing Securities had the largest increase in operating revenue, achieving a revenue of 8.068 billion yuan in the first three quarters, a year-on-year increase of 168.23%; The net profit attributable to the parent company was 943 million yuan, a year-on-year increase of 100.73%. The revenue of the first three quarters of entrepreneurship was 2.401 billion yuan, a year-on-year increase of 25.54%; The net profit attributable to shareholders of the listed company was 641 million yuan, a year-on-year increase of 95.45%. Li Juan, Chairman of Dongxing Securities, stated that the significant growth in the company's performance in the first three quarters was mainly due to the company's firm implementation of strategic transformation, steady progress in non directional investments, strengthened macro cycle trend prediction and investment strategy research and development in the face of complex market conditions, and reasonably allocated assets based on the risk attributes of investment strategies. During the reporting period, the company's investment performance increased significantly, achieving a year-on-year improvement in overall operating performance. From the perspective of the third quarter, the strong growth in brokerage performance has driven the overall performance to rebound and improve in the first three quarters. According to statistics from Tonghuashun, in the third quarter, 43 listed securities firms achieved a total operating revenue of 136.405 billion yuan, a year-on-year increase of 33.41%; Achieve a net profit attributable to the parent company of 39.5 billion yuan, a year-on-year increase of 41%. Industry insiders believe that the rebound in the third quarter performance of securities firms is due to the overall improvement of the market situation, especially at the end of September. Driven by a package of incremental policies, the market rebounded strongly, and most listed securities firms adjusted their business strategies to seize new development opportunities, ushering in a turning point of recovery for the industry. Self operated businesses mainly support the performance of listed securities firms in the first three quarters. As the largest source of income for securities firms, self operated businesses have become the core engine driving performance growth. According to statistics from Tonghuashun, in the first three quarters, the net income from self operated business of 43 listed securities firms totaled 131.689 billion yuan, a year-on-year increase of 28.1%, accounting for 35.45% of the revenue; In the third quarter, the revenue from self operated business was 56.717 billion yuan, a year-on-year increase of 174%. Among them, CITIC Securities leads with self operated income of 21.664 billion yuan, while Huatai Securities and Guotai Junan both have self operated income exceeding 10 billion yuan. Breaking down the self operated income of securities firms, it can be seen that the year-on-year increase in self operated business income is mainly caused by the high increase in fair value change gains and losses Zhao Ran, Chief Analyst of Non bank Finance at CITIC Securities, stated that in the first three quarters, the investment income of listed securities firms decreased by 44.246 billion yuan year-on-year, while the fair value change profit and loss increased by 93.466 billion yuan year-on-year. Gao Chao, Chief Researcher of Open Source Securities in the Non Banking Financial Industry, believes that the self operated business of securities firms has been greatly boosted, mainly due to the rise in the equity market at the end of September. Since September, the market trading activity has significantly increased, and investors' enthusiasm for participation has surged, driving the stock market up. As a result, securities firms' equity proprietary business has shown high elasticity. The support from policies has also solidified the pillar position of securities firms' self operated income. In September of this year, the China Securities Regulatory Commission revised and released the "Regulations on the Calculation Standards for Risk Control Indicators of Securities Companies", further improving the risk control indicator system of securities companies. The new regulations will help increase the capital space of high-quality securities firms and improve the efficiency of capital utilization, "Zhao Ran said. In addition, regulatory authorities have provided convenience in the calculation of risk control indicators, cost of funds, and other aspects for securities firms to participate in swap convenience business, reflecting the support of regulatory authorities for the development of securities firms' fixed income investment, public REITs, and on exchange derivative trading businesses, which will help expand securities firms' investment business income. From the perspective of asset management business, in the first three quarters, the overall asset management business of listed securities firms remained stable, with a relatively small decline. Since the beginning of the year, relying on the growth of fixed income and index product scale, securities firms' asset management business has shown strong resilience, "said Shu Siqin, an analyst at Guojin Securities. Listed securities firms achieved a total asset management revenue of 33.9 billion yuan in the first three quarters, a year-on-year decrease of 2%. As of September, the asset management scale of securities firms reached 5.7 trillion yuan, an increase of 7% compared to the beginning of the year. Some securities firms' asset management businesses have performed outstandingly. Shouchuang Securities had a net income of 748 million yuan from asset management business fees in the first three quarters, a year-on-year increase of 103.45%. Shouchuang Securities stated that the company's asset management business is accelerating towards multi asset and multi strategy directions, promoting balanced development of the product system. The traditional credit bond business remains stable, the interest rate bond business is accelerating its layout, the performance of equity products is good, and the investment advisory business continues to steadily improve. At the same time, it has effectively driven the development of the company's wealth management and other businesses. In addition, the transformation of public fundraising is becoming a new trend in the development of securities firms' asset management business. Many securities firms are actively promoting the landing of asset management companies, and the application for public fundraising licenses is also on the way. Hua'an Securities and Guolian Securities previously announced that asset management companies have officially opened or obtained licenses to operate securities and futures business. Guangfa Asset Management, Anxin Asset Management, Guojin Asset Management and other public offering business licenses are currently being applied for. The brokerage business is under pressure due to multiple factors such as market fluctuations, and the brokerage and investment banking businesses of securities firms are under pressure, resulting in overall poor performance. According to statistics from Tonghuashun, in the first three quarters, the brokerage business of listed securities firms achieved a revenue of 66.439 billion yuan, a year-on-year decrease of 13.58%. The year-on-year decrease in brokerage business was mainly affected by the decline in trading volume in the first three quarters. The total transaction volume of stock funds in the third quarter reached 51 trillion yuan, a year-on-year decrease of 12.27% Zhao Ran stated. However, under the recent package of incremental policies, the market trading has been active, and investors' enthusiasm for entering the market is high. The brokerage business of securities firms is expected to usher in opportunities in the future. Zhao Ran stated that the successive introduction of favorable policies and the continuous release of capital market dividends will provide strong support for the continued upward trend of A-shares, and will promote the improvement of the quality and investment value of listed companies. With the active trading sentiment in the market, the brokerage business and interest income of securities firms may improve, which is expected to become a leading indicator of the elasticity of securities firm performance. Multiple securities firms are actively seizing market opportunities and increasing their brokerage services. Wu Zongmin, Executive Director and President of China Merchants Securities, stated at the performance briefing that due to market conditions, the number of new accounts opened by the company in October increased several times compared to September. Recently, there has been a significant increase in volume in the A-share market, with a significant increase in stock base trading volume in October compared to September. The increased market heat has a positive promoting effect on the company's brokerage business, and the company will continue to enhance its comprehensive competitiveness in brokerage business, promoting long-term high-quality development of the business. Affected by the tightening of IPO stages and other factors, the investment banking business of securities firms experienced a contraction in the first three quarters, with investment banking revenue declining synchronously. According to statistics from Tonghuashun, the investment banking business of listed securities firms achieved a revenue of 21.719 billion yuan in the first three quarters, a year-on-year decrease of 38.38%. The industry believes that with the promotion of the coordinated financing and investment reforms in the capital market, investment banking business is expected to stabilize and rebound. The head of relevant departments of CSCI said that in the long run, investment banking can play an important role in the process of capital market supporting the development of new quality productivity and Chinese path to modernization. It is necessary to adapt to market changes and actively respond to challenges and opportunities. The company's investment banking business prioritizes functionality and focuses closely on serving the real economy and national strategies, accelerating the transformation from primarily focusing on license based businesses to providing customers with comprehensive services throughout the entire lifecycle and product range. Looking ahead to the annual performance of listed securities firms, the industry believes that it is expected to resume positive growth. Since October, the market transaction volume has remained high, coupled with a low base, and it is expected that the year-on-year growth rate of securities firms' performance in the fourth quarter will be significantly stronger than that in the third quarter. With the market improving, equity proprietary business may rebound first, and the sustained high market trading volume will drive the increase of brokerage business. The prosperity of large wealth management business is expected to rebound, and the return on equity (ROE) of securities firms may continue to recover. The market is developing positively, which will improve the profitability of securities firms while promoting the construction of first-class investment banks Liu Xinqi, Chief Analyst of Non bank Finance at Guotai Junan Securities, believes that since the end of September, a series of favorable policies in the capital market have been implemented, and market trading activity has increased, driving significant growth in major businesses such as brokerage, asset management, and financing, and improving the profitability of securities firms. Moreover, a series of incremental policies in recent times have put forward new requirements for securities firms to provide medium and long-term capital inflows and high-quality investment banking services. High quality securities firms with outstanding professional capabilities and stable compliance are expected to accelerate their transformation and promote the construction of first-class investment banks during the industry opportunity period. (New Society)
Edit：Yao jue Responsible editor：Xie Tunan
Source：Economic Daily
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