The data shows that in the first half of 2023, the traditional main business lines such as Dongxing Securities Brokerage and Investment Bank were flat or increased year-on-year, especially the scale of public offering of its Dongxing Fund increased substantially. However, due to self-operated business, operating income and net profit decreased year-on-year. In this regard, Zhang Tao mentioned that in the first half of the year, proprietary equity investment was significantly affected by the extreme market decline. The company took the initiative to reduce its positions to reduce its risk exposure, but there were still some losses. In the future, we will adopt diversified investment strategies to enhance our ability to resist risks and maintain steady business development.
It is worth noting that before and after the disclosure of the semi-annual report, the judicial auction of 42.53 million shares of Dongxing Securities has gone through an auction and has now entered the second auction procedure. Compared with the first auction, the current starting price has dropped by about 20%.
Improve the ability to resist risks.
According to the data of the semi-annual report, Dongxing Securities realized a year-on-year increase in net fee and commission income (14.05%), of which the net fee of brokerage business was 406 million yuan, slightly lower than the same period of last year, and the net income of investment banks showed a year-on-year increase. At the same time, however, the net investment income decreased from about 500 million yuan in the same period last year to about 29 million yuan, and the net income loss from changes in fair value was 262 million yuan.
In this regard, Zhang Tao mentioned that "the self-operated equity investment in the first half of this year was significantly affected by the extreme decline of the market. China's domestic stock market is characterized by a rapid and sharp decline. When the Shanghai Composite Index reached 2,863.65 points on April 27th, the major stock indexes all fell by more than 20%, while the Growth Enterprise Market Index fell by as much as 36. 13%, which was rare in previous years. Under extreme market conditions, the company's equity investment continues to reduce the size of its positions through various means such as secondary market reduction, fixed increase and lifting of the ban, stock index futures hedging, income swap and so on, effectively avoiding the risk of market decline. But there are still some losses in the equity investment business. After the market picked up, the company's equity investment actively and steadily developed various businesses, enhanced its ability to resist risks with diversified investment strategies, and maintained sustained and steady business development around the absolute income target. "
In fact, apart from the influence of self-operated business, Zhang Tao mentioned that the company's business has developed steadily. Among them, the investment banking business income increased significantly year-on-year; Fixed income business promotes the construction of FICC system in all directions; The margin financing and securities lending business grew steadily, and the customer structure was further optimized; Public Offering of Fund's management scale exceeded 30 billion yuan, and the investment performance of many products was brilliant, and the influence of public offering brands was significantly improved.
The sustainable development of related businesses and perfect business structure can improve the overall anti-risk ability of securities firms. "Dongxing Securities Investment Bank has promoted a number of large-scale investment banking projects after rapid development in recent years. At present, the company's investment banking project reserves are relatively abundant. According to the statistics of official website, Shanghai Stock Exchange and Shenzhen Stock Exchange, by the end of June 2023, * * * had 4 IPO projects, 16 IPO projects were in the initial stage, and 5 projects were being refinanced.
In addition to the coordinated support of core shareholders, Dongxing Securities issued 4 billion yuan of perpetual subordinated corporate bonds to professional investors in March this year, which was approved and registered by the China Securities Regulatory Commission. "At present, the company's perpetual subordinated corporate bonds have not been approved for issuance, and the company will use capital replenishment tools to replenish capital in time according to the needs of business development." Zhang Tao said in response to investors' questions.
Related question and answer: What is the commission of Dongxing Securities? Stock trading expenses include: one thousandth of stamp duty (selling income); The brokerage commission is 2/1000 to 3/1000 of the handling fee (miscellaneous fees and communication fees) of each 5 yuan transaction; Transfer fees 0.00 1 yuan/share (not accepted by Shenzhen); These should be included in your transaction costs. Note: The brokerage commission is negotiable, with the minimum of 1.5% and the maximum of 3%. It would be nice to get 2%. Just try it.