On August 25, Industrial Securities opened with a sharp drop of nearly 6% to 10.86 yuan, and then fluctuated and fell. It was blocked by nearly 250,000 sell orders at nearly 11 o'clock. The stock price was reported at 10.40 yuan, and the market value evaporated by 7.7 billion yuan.

Some investors analyzed that "Industrial Securities took down the brokerage sector today, mainly because of the rights issue plan released last night. Financing at a relatively high stock price is undoubtedly a blow to market confidence."

Some investors believe that "Industrial Securities has experienced a large increase recently, and there is already a need for a correction in the stock price."

Why did the booming Industrial Securities hit the limit? It turns out that Industrial Securities announced on the evening of the 24th that this allotment plan will be based on the total number of shares after the market closes on the equity registration date (rights equity registration date) for the implementation of this allotment plan. According to every 10 shares

The allotment ratio shall not exceed 3 shares to all shareholders.

The total amount of funds raised from this rights issue is expected to be no more than RMB 14 billion (the specific scale will depend on the market conditions at the time of issuance). After deducting the issuance expenses, it is planned to be used to increase the company's capital, supplement working capital, serve the development of the real economy and satisfy residents

Wealth management needs to comprehensively enhance the company's market competitiveness and risk resistance.

Specifically, the two financing businesses are the focus of fundraising investment. No more than 7 billion yuan of the funds raised by Industrial Securities this time will be used to develop margin financing and securities lending business.

Industrial Securities stated in the announcement that margin trading assets do not leave the account, the risks are relatively controllable, and the brokerage that opens the account is unique. It has gradually become an important tool for major securities firms to acquire and retain high-net-worth customers, product households and professional institutional investors.

, high comprehensive business effect.

Industrial Securities stated that in recent years, the company has effectively seized market opportunities, focused on high-net-worth customers and institutional customers, relied on a wealth management service platform, established a rapid customer demand response mechanism, provided customers with a package of personalized service solutions, and actively managed and controlled business risks.

We have built a multi-level securities source system, expanded securities lending sources through multiple channels, and continued to increase the market share of the two financing businesses, establishing a good growth trend.

However, the margin financing and securities lending business is a capital-consuming business. Due to the limitation of net capital scale, the company faces a major bottleneck in the continued growth of its business. It is urgent to replenish net capital, open up business growth space, and ensure the continued growth of business scale.

The investment trading business is closely followed. Industrial Securities plans to use no more than 4.5 billion yuan of the funds raised this time to develop investment trading business.

About Industrial Securities Industrial Securities stated that as the market becomes more institutionalized, revenue from institutional customer service business occupies an increasingly important position in the profit structure of securities firms.

The investment trading business, which aims to meet the rapidly growing trading and risk hedging needs of institutional investors, has gradually become a key part of the differentiated capabilities of securities firms in serving institutional customers, with broad business space.

At present, some securities firms have made considerable profit contributions from their investment and trading business by virtue of their advantages in innovative licenses, capital scale and risk management.

Constrained by factors such as insufficient capital strength and lack of innovative licenses such as primary dealer qualifications, the company's investment and trading business is still in its infancy.

In the future, Industrial Securities will, on the basis of adhering to the risk-neutral strategy, vigorously promote innovative license applications and business development, take advantage of the opportunities that the competitive landscape of innovative businesses has not yet solidified to achieve catch-up, and form the company's core capabilities of expanding and maintaining institutional customers and its important future

source of profit.

Conclusion Industrial Securities stated that this issuance will help the company seize industry development opportunities and cope with the new industry competition pattern; it will help the company improve its comprehensive competitiveness and lay a solid foundation for achieving strategic goals; it will help the company reduce liquidity risks and enhance

Risk resistance ability.