This year, the two financial services are doing very well, after all, the bull market. A person from a listed securities firm told Chinas securities dealers that in the past two years, various securities companies have been actively promoting refinancing, and a large part of them has been used in the advance layout of the two financing businesses. In addition, in the second half of the year, the securities lending business developed rapidly, and the margin balance scale increased by about 7 times compared with the beginning of the year, and the situation of insufficient supply of bonds has been greatly improved.
The rising of two financial institutions promotes interest income
On November 26, the balance of financing between Shanghai and Shenzhen stock exchanges was 1573697 billion yuan (the highest in the year was 1577.090 billion yuan on November 24), which remained above the 1.5 trillion mark for 34 consecutive trading days. Compared with historical data, this figure is almost the same as the end of the bull market in July 2015, reaching a new high in nearly five years.
The continuous expansion of the scale of the two financing not only further promotes the active trading of a shares, but also brings a continuous stream of operating income for securities companies.
According to the statistics of Huatai Securities, as the market risk preference continued to rise, as of the third quarter of this year, the scale of the whole markets two financing was 1472.3 billion yuan, an increase of 44.4% over the beginning of the year, which was the main reason for the growth of net interest income of listed securities companies. Data shows that the net interest income of listed securities companies in the first three quarters was 40.2 billion yuan, up 25% year on year.
Xu Jianfeng, an analyst at Dongguan securities, judged that with the improvement of the market environment, the scale of margin trading is expected to continue to grow. The superimposed regulatory layer will vigorously promote the development of direct financing and indirect financing in the capital market, and the interest business income of listed securities companies is expected to continue to rise.
The expansion of securities lending alleviates the shortage of securities
On November 26, the financing balance of 1573697 billion yuan in Shanghai and Shenzhen stock markets was 1457.362 billion yuan, accounting for 92.61%; the securities lending balance was 116.335 billion yuan, accounting for 7.39%. Although it seems that there is still a big gap, at the beginning of this year, the financing balance accounted for 98.64% of the 1026.166 billion yuan of financing balance, while the securities lending balance only accounted for 1.36%!
Judging from the curve of margin trading, June is the starting point of its accelerated growth. According to the data, in the second half of the year, the balance of securities lending in the whole market increased significantly from 34.116 billion yuan to 116.335 billion yuan on November 26, with an accumulative increase of 241% in the past half year.
The huge change in this number is closely related to the rapid development of refinancing business this year.
Following the implementation of QFII refinancing in early November, the National Council of social security funds announced on November 18 that it would formally launch the refinancing business, lending part of its positions in Shanghai and Shenzhen 300 shares, and chose Guotai Junan, Shenwan Hongyuan, Guoxin Securities and Xingye securities as agents.
Chinese reporters of securities companies have learned from securities dealers that before that, the lending subjects of securities lending were mainly public offering, with less private placement; while potential customers such as legal persons of listed companies and high net worth individuals were generally not willing to participate in lending, considering the factors such as low financing interest rate and possible short of their heavily held stocks. Therefore, the entry of institutional investors such as social security and QFII has further enriched the lending entities, indicating that the A-share long short mechanism is gradually improving.
At the same time, securities companies also continue to make efforts to refinance business this year, especially the head of securities companies. For example, on June 30, Huatai Securities released the first open online securities lending and borrowing trading platform in the whole market, aiming to solve the common problems in the securities lending business, such as the asymmetry of securities source information and the need to improve the matching efficiency.
At that time, Zhou Yi, chief executive of Huatai Securities, said that Huatai Securities Association would open up the securities source and demand formed by its huge business foundation, as well as its technological capabilities such as AI and big data. Under the guidance of the regulatory authorities, it would promote the domestic securities lending market to become bigger and stronger, let the market players fully play games, and let the market-oriented mechanism play a role in a larger scope and deeper level.
Continue to increase investment in financing and financing business
In addition to the counter attack growth of securities lending business, the continuous increase of securities companies investment in two aspects of financing in recent two years has also boosted the continuous expansion of financing business.
In the past two years, listed securities companies have shown their magic power, and have increased their capital to replenish their blood by means of fixed increase, allotment of shares, convertible bonds and other means, and a large part of them have invested in the two financing businesses. Securities companies in China have made statistics on the refinancing plans of a number of listed securities companies since this year. Among them, the proportion of fund-raising plans invested in capital intermediary business (mainly two financing businesses) is about 25% - 50%.
In this regard, Guoyuan securities explained that since the company has used its own funds to invest an additional 400 million yuan in its wholly-owned subsidiary Guoyuan innovation in September, it has initially met the capital needs of its business development. Therefore, in combination with the recent capital market, specific operation and capital demand of subsidiaries, it is planned to change the use of funds raised by partial public offering of rights issue.