On August 6 and 7 alone, 15 securities companies, including Guotai Junan, CITIC construction investment, Zhongtai securities and Anxin securities, collectively disclosed the new loans from January to July this year, with a total of 173.882 billion yuan of new loans. Among them, the new loans of 7 Securities Companies exceed 20% of the net assets at the end of 2019, and the new loans of the remaining 8 securities companies have exceeded 40% of the net assets at the end of 2019.
Specifically, the highest proportion of new loans in net assets at the end of 2019 is CSCI. As of the end of July, in the first seven months of this year, CSCI has accumulated new loans of 32.788 billion yuan, accounting for 57.63% of the net assets at the end of 2019. The new loans mainly include bonds, income certificates, etc.
Among them, the balance of bonds issued by CSCI increased by 6.096 billion yuan compared with that at the end of 2019, and the change accounted for 10.72% of the net assets at the end of the previous year, mainly due to the increase in the balance of short-term financing bonds and corporate bonds of securities companies issued by China securities construction investment. Compared with the end of 2019, the balance of other loans (including income vouchers, refinancing, etc.) of CSCI increased by 25.553 billion yuan, accounting for 44.91% of the net assets at the end of the previous year, mainly due to the increase in the balance of income vouchers and refinancing. In addition, the loan balance of China Construction Investment Bank increased by 1.139 billion yuan compared with the end of 2019.
In addition, the new loans of CICC fortune, Nanjing Securities and Great Wall Securities in the first seven months accounted for more than 50% of the net assets at the end of 2019.
From the classification disclosure of new loans of Great Wall Securities (consolidation caliber), there are only two items of issuing bonds and income certificates. As of the end of July, the balance of bonds issued by Great Wall Securities increased by 3.28 billion yuan compared with that at the end of 2019, and the change accounted for 18.9% of the net assets at the end of 2019, which was mainly caused by the increase of corporate bonds issued by the company. At the same time, the balance of other borrowings of Great Wall Securities increased by 5.423 billion yuan compared with the end of 2019, accounting for 31.25% of the net assets at the end of last year, mainly due to the increase in issuance of income certificates. The newly increased loans of Huaxi Securities in the first seven months of this year were all caused by the issuance of income certificates, corporate bonds and short-term financing bonds.
According to the Securities Daily reporters observation, at present, securities companies mainly issue bonds and income certificates for new loans. Only four of the 15 securities companies use bank loans.
As for the impact of new loans on the solvency of securities companies this year, all the securities companies have basically the same statement, saying that the new loans conform to the provisions of relevant laws and regulations and belong to the normal business activities of the company.
Allowing securities companies to issue subordinated bonds publicly
Effectively improve the level of leverage
With the transformation of securities companies to heavy capital business, during the year, securities companies continuously issued short-term financing bonds, securities company bonds, secondary bonds of securities companies, convertible bonds and other bond issuance financing methods to supplement capital, in order to enhance competitiveness. From the classification details of new loans disclosed by the above securities companies, the issuance of bonds has also become one of the main factors for the substantial increase of new loans of securities companies in the year.
After sorting out the Ifind data from the Ifind, Securities Daily found that in the first seven months of this year, securities companies have raised 968.126 billion yuan of capital by issuing securities corporate bonds, subordinated bonds, short-term financing bonds and convertible bonds, a year-on-year increase of 98.86%. Among them, 141 securities company bonds were issued, raising 345.068 billion yuan; 41 secondary bonds of securities companies were issued, raising 75.158 billion yuan; 198 short-term financing bonds were issued, raising 545.1 billion yuan, and 1 convertible bond was issued, raising 2.8 billion yuan.
On May 29, the CSRC issued the decision on Amending the provisions on the administration of subordinated bonds of securities companies (hereinafter referred to as the administrative provisions). Before the promulgation of the administrative regulations, securities companies could only issue subordinated bonds in private, and there was no clear basis for issuing write down bonds and other varieties. The revised management regulations further broadened the channels for securities companies to issue bonds.
In this regard, Tang zipei, an analyst at Dongfang securities, believes that the administrative regulations allow securities companies to issue subordinated bonds publicly, which will undoubtedly significantly expand the financing channels of securities companies subordinated bonds, effectively enhance the level of leverage, enrich capital, and enhance the ability to prevent risks, and at the same time, it will also lay a legal foundation for securities companies to issue other types of corporate bonds.