This is almost the same reason why Haitong Securities (600837. SH) was investigated by the dealers association.
In fact, public information shows that as of the end of the third quarter of 2020, the main underwriters of many heavy positions of Donghai funds funds are Haitong Securities, such as 20 Ping Coal Chemical (epidemic prevention and control debt) cp003 of Donghai Xiangsu short-term bond A / C, and 18 Datong Coal mine mtn006 of Donghai Xiangrui A / C heavy position.
At present, Haitong Securities is also experiencing a test.
The CSRC announced on November 27 that it had recently decided to file an investigation into Yongcheng Coal and Power Holding Group Co., Ltd. (hereinafter referred to as Yongcheng group) and Xigema accounting firm in accordance with the law.
After the default of Yongcheng Coal bond, the dealers association immediately carried out self-discipline investigation on relevant institutions including Haitong Securities and its related subsidiaries, and stated that if the investigation found that there were bad behaviors such as market manipulation that were suspected of disturbing the market order, they would be subject to strict self-discipline punishment and transferred to relevant departments for further treatment.
For a time, Haitong Securities was exposed in the spotlight of the market.
For the content and progress of the self-discipline investigation, on November 30, the times weekly reporter called the dealers association to learn that at present, the post supervision center is dealing with relevant matters, subject to the official announcement of the association.
On November 26, the reporter of time weekly sent an interview letter to Haitong Securities, but no reply was received as of the time. On the 27th, the reporter also called the companys investor hotline, and the other side responded, the investigation has not got any results, the specific content and impact are not very clear, follow up please pay attention to the announcement.
On the same day, a relevant person of Haitong Securities bond financing business disclosed to the times weekly that Yongmei bond is divided into many periods, and Haitong Securities only participated in part of it. At present, the bond underwriting business has not been affected and is still in normal operation. The project has a corresponding audit process, and it is necessary to evaluate the specific situation of the enterprise itself before project approval.
On November 29, Haitong Securities issued an opinion, saying, the recent bond market panic has improved significantly, the policy to maintain corporate credit tone is clear, the market sentiment will enter the recovery period in the future, but the importance of risk prevention is significantly increased, refinancing environment dividend gradually recedes, and credit bond investment should still be cautious.
Or roll call due to structured issue
Up to now, the default bonds of Yongmei Group involve 20 Yongmei scp004, 20 Yongmei scp007 and 20 Yongmei scp003. However, Haitong Securities did not appear in the list of underwriters of these default bonds. Instead, Haitong Securities was a member of the underwriting group with a 1 billion yuan winning note 20 Yongmei mtn006 just issued on October 20 this year.
On November 30, a reporter from the times weekly called Yongmei Group. Relevant people explained that the association of dealers may conduct a self-discipline investigation on the flaws in the issuance of the overall, including historical bonds, and not only for the bonds currently in default.
As for the reason why Haitong Securities was investigated by self-discipline, the association of dealers said in the announcement that Haitong Securities and its related subsidiaries are suspected of providing assistance to issuers in illegal issuance of bonds, and suspected of market manipulation and other violations, involving debt financing instruments of non-financial enterprises in the inter-bank bond market and corporate bonds in the exchange market.
Market sources revealed that Haitong Securities is suspected of illegal operation of Yongcheng Coal bonds or due to structured issuance. The so-called structured issuance means that the financing subject and the securities companies jointly subscribe for bonds. The financing subject ensures the smooth issuance of bonds, and the securities companies can earn channel fees from it.
There are also some asset management institutions in the industry that are more daring, such as undertaking bonds through asset management products, and charging financial advisory fees from issuers through investment banking departments. Recently, song Guanghui, former executive vice president of Ping An Securities Asset Management Department, said.
Song Guanghui analyzed that structured issuance is essentially a self financing behavior, which means that the issuer invests in its own bonds as an investor. In this case, the bond price can not reflect the real supply-demand relationship in the market.
On the same day that Haitong Securities was launched to investigate, the association of dealers issued the notice on Further Strengthening the business regulation of issuing debt financing instruments (hereinafter referred to as the notice), with special emphasis on prohibiting issuers from self financing and strengthening the subscription disclosure of related parties.
Strong bond business but bitter fruit
On the evening of November 18, Haitong Securities announced that the company would actively cooperate with the relevant work of self-discipline investigation, strictly implement the relevant requirements in the notice of dealers association, and timely fulfill the obligation of information disclosure.
In fact, this is the second time that Haitong Securities has been supervised and started self-discipline investigation since this year. On July 19, the China Securities Association said that it was concerned that eight securities companies, including Haitong Securities, had quoted lower underwriting fees in the process of issuing bonds by CNNC financial leasing company, which led to market doubts. Therefore, it launched self-discipline investigation on relevant issues and took self-discipline measures against relevant institutions.
According to the companys 2020 semi annual report, in terms of domestic bond financing business, the company mainly underwrites 439 credit bonds, an increase of 44% year-on-year, and the principal underwriting amount is 225.9 billion yuan, with a year-on-year increase of 26%. Among them, the underwriting amount of bonds ranked fourth in the whole industry; the number and amount of underwriters of credit bonds of non-financial enterprises (including corporate bonds, corporate bonds, and debt financing instruments of non-financial enterprises) ranked third; and the underwriting amount of corporate bonds ranked first.
Behind the brilliant bond underwriting performance, there are also problems gradually exposed.
Although bond default can not be equated with the failure of the lead underwriter to be diligent and responsible, since this year, there have been many securities companies who have stepped on the thunder due to the bond underwriting business, and the responsibility of the underwriter has become the focus of investors attention and supervision.
Focusing on quantity, ignoring quality and putting speed first will inevitably lead to the lack of risk control, lax control of project quality, careless on-site due diligence, and finally bond default under the premise of limited team size. On November 30, an investment banker of a medium-sized securities firm told the times weekly. He stressed, the risk control of underwriters can not be ignored. As an intermediary, securities companies should cherish their feathers and strengthen due diligence and core. In recent years, due to the default of Yongmei credit bonds, the risk preference of institutional investors has been reduced, and the difficulty of issuing bonds has also increased. On November 27, a head securities company bond financing business personnel told the times weekly that if it is pure credit bonds, the pressure will be greater; if it is ABS, it needs to see the underlying assets. How to prevent and control the credit risk of the bond business is imminent. It is necessary to improve the credit risk management system from the risk culture, assessment mechanism, governance structure, management mechanism and other dimensions. Recently, the investment department of AXA Insurance Company Bao Yunan said. Extended reading public offering funds set three records and entered the era of 18 trillion. Public funds are optimistic about A-share cross-year market layout, liquor and big finance 4445, three-year private placement ranking 4, yield more than 10 times. Source: times weekly editor in charge: Ren Hui_ NBJ9607
Focusing on quantity, ignoring quality and putting speed first will inevitably lead to the lack of risk control, lax control of project quality, careless on-site due diligence, and finally bond default under the premise of limited team size. On November 30, an investment banker of a medium-sized securities firm told the times weekly. He stressed, the risk control of underwriters can not be ignored. As an intermediary, securities companies should cherish their feathers and strengthen due diligence and core.
How to prevent and control the credit risk of the bond business is imminent. It is necessary to improve the credit risk management system from the risk culture, assessment mechanism, governance structure, management mechanism and other dimensions. Recently, the investment department of AXA Insurance Company Bao Yunan said.