Content tip: For mainland securities companies, such as QDII business, the opening of the international board and asset management business, etc., have given Hong Kong a huge market cake with great imagination. This is especially true for China International Finance Securities, which completed a private placement at the end of last year and successfully raised 3 billion yuan.
“All aspects of China National Finance Corporation have gradually moved on the right track, and testing overseas business will be the key to the problem.” A person close to the company’s senior management revealed.
Following the successful completion of a 3 billion yuan private placement at the end of 2012, which greatly increased its net capital strength, China International Finance Securities (600109.SH), as the largest financial capital platform of the "Yongjin System", finally took the next step. action.
On May 10, Sinolink Securities officially announced that it was planning to acquire a securities operating institution in Hong Kong, and stated that it would confirm the acquisition and announce the resumption of trading within 5 working days. As of now, the company has not issued a final acquisition announcement, but it has been learned from the outside that China International Finance will most likely choose to acquire Hong Kong Guangdong Securities, an asset of the "Yongjin Group" related securities company.
Relevant information shows that Guangdong Securities is affiliated to the financial services sector of Yongjin Group. It is the third largest "Yongjin system" financial asset after China International Finance Corporation Securities and Yunnan International Trust. Brothers Brokerage.
According to the aforementioned people familiar with the matter, Sinolink Securities has basically obtained all business licenses for securities operations. The next step will be to focus on exploring the growth points of various innovative businesses, among which asset management is regarded as the most important. One of the businesses with growth potential.
Coincidentally, Guangdong Securities claims to be good at asset management business. However, as to whether the target is Guangdong Securities, relevant personnel from China International Finance Securities did not respond positively. As for the identification of it as a securities company affiliated with China International Finance Corporation, a person from the securities department clearly denied it.
Next stop: M&A of Hong Kong and Guangdong?
According to the official website of Guangdong Securities, the company was founded in 1987 and is one of the earliest Chinese-funded enterprises in Hong Kong engaged in financial securities. It wholly-owned two companies: Guangdong Financing Co., Ltd. and Hengrong. AGENTS LIMITED. Like most securities firms, it is still based on securities brokerage business, but it is quite distinctive in asset management business. It is also widely engaged in margin financing, securities investment consulting, listing underwriting and distribution, securities placement, agent services, self-operation and entrustment Securities investment and other businesses.
As of now, the brokerage is still somewhat mysterious. In addition to appearing in many financing projects of listed companies in the form of financial consultants, its registered capital, asset size, profitability, etc. have been kept secret until now. In the new official website of Yongjin Group, the company has also been mysteriously hidden.
But what is unavoidable is that in many of Yongjin Group’s recruitment information and earlier official website introduction materials, this asset is clearly listed in its financial services sector.
It is understood that the securities firm was affiliated to Guangdong Yuehai Holding Group in its early years, and was later acquired by other investors in Hong Kong around 2003, and then evolved into an asset of Yongjin. Industry insiders said that this brokerage was a Hong Kong stock brokerage channel deliberately acquired by the "Yongjin Group" in 2007 in preparation for the Hong Kong stock through train. Public information shows that after the "Yongjin Department" took over, the strength of Guangdong Securities has increased day by day. In 2006, it has become the underwriter of China's large overseas IPOs such as Bank of China, Industrial and Commercial Bank of China, and China Merchants Bank.
However, in the extremely uncertain environment of the securities industry, it is still unclear whether the acquisition of China International Finance Securities will be successful. It is worth mentioning that just before the company's trading suspension, the company's shareholders "voted with their feet" by significantly reducing their holdings.
The announcement shows that Shanghai Pengxin Construction and Installation Engineering Co., Ltd., the fourth largest shareholder of Sinolink Securities, reduced its holdings of 16 million shares at a discount through block transactions on the evening of May 9 when it issued a trading suspension announcement, cashing out up to 240 million yuan.
The coincidental timing of the shareholding reduction undoubtedly makes market participants worried about the acquisition by China International Finance Corporation. "Judging from the current market conditions, the asset profitability of small and medium-sized securities firms is not very good. The risks will definitely outweigh the returns. And if it is an affiliated company, it will be even more difficult to escape the suspicion of taking advantage of the opportunity to cash out." A local securities company in Chengdu Analysts say so.
However, from the perspective of corporate governance, this acquisition will undoubtedly help Sinolink Securities resolve the horizontal competition between Yongjin Group in the domestic market.
The "Yongjin System" financial integration has restarted
"With the further integration of international capital, regulators are gradually liberalizing the development of domestic securities firms and encouraging securities firms to go global. Hong Kong As the market with the highest degree of capital integration in the country, it is naturally the first choice.” According to the aforementioned company insiders, this acquisition is intended to test the overseas market, and the initial acquisition scale will not be too large. It is mainly for strategic considerations to expand innovative businesses.
For mainland securities companies, such as QDII business, the opening of the international board and asset management business, etc., have given great imagination to the Hong Kong market cake. This is especially true for China International Finance Securities, which completed a private placement at the end of last year and successfully raised 3 billion yuan.
“Hong Kong is a strategically important place. Before securities companies are fully allowed to set up branches in Hong Kong, whoever goes first will definitely have an inherent advantage. Many innovative businesses can be launched.” The aforementioned person close to the company’s senior management people said.
The reporter learned from the interview that the acquisition by China International Finance Securities may be aimed at expanding the asset management business, because nowadays, new branches of mainland securities companies often need to choose to cooperate with major foreign banks in the asset management business. The original Hong Kong-funded securities companies generally have this advantage.
However, from a strategic perspective, this acquisition may lead to the re-integration of the Yongjin financial platform. According to the main line of the financial service industry chain proposed by Yongjin Group such as securities, trusts, funds and futures, now, in addition to Yunnan International Trust, other business sectors including securities, funds and futures have basically been included in the Guojin Securities platform, such as Guojin Securities Futures and Sinolink General Fund currently belong to Sinolink Securities Holdings subsidiaries.
Up to now, Guojin Securities has basically included almost all innovative business licenses such as direct investment, margin trading, agency system hosting, agreed repurchase, asset management, and agency sales of financial products. A comprehensive private financial platform has taken shape.
"As China International Finance Corporation develops its business in all aspects and gets out of the trough of development, Yongjin will no longer consider transferring it easily. After all, this will become its main financial integration platform." The aforementioned person believes that China Finance Corporation Securities may become the top priority of the entire Yongjin system’s financial capital landscape.
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