China Fund News reporter Lin Xue
At the beginning of the new year, CITIC Construction Investment, a 200 billion yuan securities firm with a stock market value, issued an announcement that through the equity transfer, the company's shareholding in the CITIC Construction Investment Fund increased from 75% to 100%; since then, the CITIC Construction Investment Fund has become a wholly-owned subsidiary of the company. In recent years, many securities companies have actively made efforts to promote public offering tracks and seek diversified business development.
Achieve 100% control of CITIC Construction Investment Fund
This leading brokerage firm actively launched a public offering track
On February 10, CITIC Construction Investment Securities issued an announcement on the completion of the industrial and commercial registration of the change of equity of CITIC Construction Investment Fund Management Co., Ltd., and on August 26, 2021, the company held a board of directors meeting to agree that the company would transfer part of the equity of the holding subsidiary, CITIC Construction Investment Fund, and authorize the company's operating management to handle the specific matters related to the transfer of equity. Subsequently, the CSRC issued the Reply on Approving the Change of Equity of CITIC Construction Investment Fund Management Co., Ltd., which approved Aerospace Science and Technology Finance Co., Ltd. to transfer its 25% equity in the CITIC Construction Investment Fund to the Company.
In accordance with laws and regulations and the requirements of relevant departments, CITIC Construction Investment Fund completed the registration of the industrial and commercial change of this equity change on February 10, 2022. As a result of the equity transfer, the company's shareholding in the CITIC Construction Investment Fund increased from 75% to 100%. Since then, CITIC Construction Investment Fund has become a wholly-owned subsidiary of the company.
On the same day, CITIC Construction Investment Fund issued an announcement on the completion of the registration of the change of shareholders in industry and commerce, and with the resolution of the company's shareholders' meeting and the approval of the CSRC, the company's shareholder Aerospace Science and Technology Finance Co., Ltd. transferred its 25% equity in the company to CITIC Construction Investment Securities Co., Ltd. On February 10 this year, CSCI Fund completed the registration of the industrial and commercial change of the above-mentioned shareholder changes, and the company's equity structure became 100% controlled by CITIC Construction Investment Securities.
According to public information, CITIC Construction Investment Fund was established on September 9, 2013, and its registered capital increased to 300 million yuan in 2016, of which CITIC Construction Investment Securities contributed 165 million yuan and held 55% of the shares. In the past year, the CITIC Construction Investment Fund has undergone two equity changes, and the shareholding ratio of CITIC Construction Investment Securities has risen from 55% to 75%, and then to 100%.
In April last year, the Csrcover commission approved Jiangsu Guangchuan Broadcasting Media Co., Ltd. to transfer its 20% stake in the CITIC Construction Investment Fund to CITIC Construction Investment Securities. After the completion of the equity transfer, the shareholding ratio of CSCI Securities in the CITIC Construction Investment Fund will be increased from 55% to 75%.
In January this year, the China Securities Regulatory Commission (CSRC) approved Aerospace Science and Technology Finance Co., Ltd. to transfer its 25% stake in the CITIC Construction Investment Fund to CITIC Construction Investment Securities. After the completion of the equity transfer, the shareholding ratio of CITIC Construction Investment Securities in the CITIC Construction Investment Fund will be increased from 75% to 100%.
The scale of public offering of CITIC Construction Investment Fund doubled last year
Since then, CITIC Construction Investment Fund has become a wholly-owned subsidiary of 100% controlled by CITIC Construction Investment Securities.
According to the 2021 semi-annual report released by CITIC Construction Investment Securities, as of the end of the reporting period, the asset management scale of CITIC Construction Investment Fund was 55 billion yuan, down 0.57% from the end of 2020, of which the management scale of public funds was 36.691 billion yuan, an increase of 37.48% over the end of 2020; the management scale of the special account products of CITIC Construction Investment Fund and fund subsidiary Yuan Marsh Capital Management (Beijing) Co., Ltd. was 18.309 billion yuan, down 36.05% from the end of 2020.
According to the data of the four quarterly reports of the fund just released not long ago, as of the end of 2021, the public offering management scale of the CITIC Construction Investment Fund reached 48.288 billion yuan, an increase of about 84% over the 26.273 billion yuan at the end of 2020; of which the non-monetary scale of the CITIC Construction Investment Fund was 31.731 billion yuan. From the perspective of product layout, CITIC Construction Investment Fund has a total of 33 funds, actively exerting active equity and "fixed income +" business.
Jin Qiang, general manager of CITIC Construction Investment Fund, said that the company has made great progress in 2021 compared with the previous year, with the scale of public offerings and non-goods doubling, and the three-year investment performance ranks 11th in the industry and the five-year investment performance ranks 13th.
In the new year, CITIC Construction Investment Fund has clarified the following key tasks: First, intensively cultivate major shareholders and key bank channels, open up 2-3 new investment tracks to enhance the competitive strength of industry investment, and continue to increase manpower and system investment for the quantitative investment team that performed outstanding last year; second, the company will also expand the special account business team and increase cooperation with wealth management subsidiaries, which is expected to grow by leaps and bounds compared with 2021; third, it will continue to increase the exploration of innovative business models in e-commerce. Strive to continue to maintain a development growth rate of 50% in the scale of e-commerce.
The public offering team of securities companies is constantly growing
Wind data shows that at present, there are 67 public funds (including securities asset management) in the public offering industry, of which 13 are 100% controlled by a single securities company, including CITIC Construction Investment Fund controlled by CITIC Construction Investment Securities, CICC Fund controlled by CICC, as well as Xiangcai Fund, Tibet Dongcai Fund, Huarong Fund, Dongxing Fund, etc.
In recent years, many strong securities companies have actively developed public offering business, in addition to holding public fund companies, but also through their asset management companies as the main body to apply for public fund management business qualifications. Just in April last year, CITIC Construction Investment issued an announcement on outbound investment, proposing to invest no more than RMB2.5 billion to set up a wholly-owned subsidiary asset management subsidiary to engage in securities asset management related business, thereby promoting the better development of the Group's asset management business. The tentative name of the asset management subsidiary is CITIC Construction Investment Securities Asset Management Co., Ltd.
Industry insiders believe that under the new asset management regulations, securities companies actively exert public offering tracks, increase control over fund companies is conducive to the development of securities companies' asset management business, but also conducive to the company's development of new business and increase profit growth points. Moreover, in terms of business synergy, the resource endowments between securities companies and public offerings can complement each other, brokers can provide sales channels for funds, and funds are also conducive to securities companies to develop wealth management business.
In October last year, Guotai Junan Securities also announced that the company's board of directors deliberated and passed the "Proposal on Submitting for Consideration the Transfer of Part of the Equity of Huaan Fund Management Co., Ltd." by the Company, and agreed that the Company would transfer 15% of the equity of Huaan Fund held by Shanghai Shanghai SDIC Asset Management Co., Ltd. by way of non-public agreement transfer, and the transaction price would be determined on the basis of the assessment results confirmed by the competent state-owned assets regulatory authority, not exceeding RMB1.812 billion. The transaction is subject to approval/approval from the relevant state-owned assets regulator and the China Securities Regulatory Commission.
EDIT: Captain
Copyright Notice