Very suddenly! Xinda securities has just put forward the plan of spin off and listing

category:Finance
 Very suddenly! Xinda securities has just put forward the plan of spin off and listing


According to the official website of Beijing Securities Regulatory Bureau, in December 2019, the CSRC approved the post qualification of chairman of Xiaolin securities company. Xiao Lin and also took office at the same time as the general manager of Cinda securities, Zhu Ruimins position has not changed.

According to public data, Xiao Lin was born in Changzhou, Jiangsu Province in 1966. He has a bachelors degree in world economics from Fudan University and a masters degree in Business Administration from the University of New South Wales in international accounting and the University of foreign economic relations and trade. From 1989 to 1999, he worked in China Construction Bank, China Cinda in 1999 and chairman of Cinda securities in 2019.

According to media reports, the new leading group formed by Xiao Lin and Zhu Ruimin conducted a comprehensive investigation on the company after taking office, and put forward the long-term strategic concept of realizing the listing of a shares within three years and becoming a competitive securities trader.

The change in the chairmans position is very sudden. An insider of Cinda securities told Mr. Zhongzheng that it was not clear whether the new chairman had been appointed. In addition, Zhongzheng Jun also learned that the companys recent personnel changes are relatively frequent.

The companys listing plan is advancing

In August this year, China Cinda announced on the Hong Kong stock exchange that it was considering splitting Cinda securities and its subsidiaries for independent listing on a mainland stock exchange. At present, it has submitted an application to the Beijing Securities Regulatory Bureau for launching the listing guidance process.

According to the official website of Beijing Securities Regulatory Bureau, the tutoring agency of Cinda securities is CSCI securities. At present, there are four AMC securities companies in China, namely Huarong securities, Dongxing securities, Great Wall Securities and Cinda securities. Dongxing securities and Great Wall Securities have been listed. According to the official website of China Securities Association, the performance of Cinda securities has been declining year by year in the past five years. People in the industry pointed out that the development of AMCs four major securities companies was also restricted.

From 2015 to 2019, Cinda securities achieved operating revenue of 4.845 billion yuan, 2.243 billion yuan, 1.759 billion yuan, 1.458 billion yuan and 1.632 billion yuan respectively, ranking 30, 41, 45, 50 and 50 in the industry respectively; and the net profits of 2.067 billion yuan, 509 million yuan, 333 million yuan, 113 million yuan and 210 million yuan respectively, ranking 28, 50, 53, 53 and 62 in the industry respectively.

According to the financial report of Cinda securities in 2019, as of December 31, 2019, the company has a total registered capital of 2.568.7 billion yuan, with 103 branches, including 9 branches and 94 securities business departments. It also includes futures, innovation, AOB, international, alternative investment and fund subsidiaries.

Before the announcement of the listing plan, Cinda securities has been introducing strategic investors. At the end of 2019, Cinda securities announced relevant capital increase projects in Beijing financial assets exchange, and planned to raise 3.962 billion yuan. However, Zhongzheng Jun learned that this time, it only raised less than 2 billion yuan, which is far from the plan. In fact, Cinda securities is also taking measures to reverse the decline. In addition to the personnel changes, zhongzhengjun learned that Cinda securities also established a strategic customer department, and at the same time abolished the institutional business department, and the corresponding functions were adjusted to the strategic customer department. The public offering sub warehouse business originally undertaken by the institutional business department was divided into the R & D center. Previously, the companys R & D center was mainly responsible for the service of the parent company, but now it has become active in participating in the external selection. Industry insiders said that this also reflects the transformation of Cinda securities from the side. Source: China Securities Journal Editor in charge: Yang Bin_ NF4368

Before the announcement of the listing plan, Cinda securities has been introducing strategic investors. At the end of 2019, Cinda securities announced relevant capital increase projects in Beijing financial assets exchange, and planned to raise 3.962 billion yuan. However, Zhongzheng Jun learned that this time, it only raised less than 2 billion yuan, which is far from the plan.

In fact, Cinda securities is also taking measures to reverse the decline. In addition to the personnel changes, zhongzhengjun learned that Cinda securities also established a strategic customer department, and at the same time abolished the institutional business department, and the corresponding functions were adjusted to the strategic customer department. The public offering sub warehouse business originally undertaken by the institutional business department was divided into the R & D center. Previously, the companys R & D center was mainly responsible for the service of the parent company, but now it has become active in participating in the external selection. Industry insiders said that this also reflects the transformation of Cinda securities from the side.