Ding Ke, the first fully licensed legal person securities company in Qingdao and president of Fed Securities: When the regional economic development "helper" small and medium-sized securities companies break through the "Soochow model" to wealth management transformation from "commission is king" to professional investment advisory services

Words written on the front:

As the first fully licensed legal person securities company in Qingdao, since it moved to jinjialing financial district in May this year, Fed Securities has been concerned by all walks of life; and as the president of Fed Securities, intensive visits and research have become the most important working state of Ding Ke, West Coast, Licang, Shibei... In just a few months, the development characteristics of small and medium-sized enterprises in various districts and cities, which types of enterprises need to pay more attention to and dig deeper, Ding Ke has been able to count the family treasures.

In Ding Ke's view, it is deeply integrated with the characteristics and advantages of urban economic development, serving Qingdao, deeply cultivating Qingdao, and striving to break out a breakthrough road for small and medium-sized securities companies, which is the biggest driving force for Fed Securities to move north from Shenzhen to Qingdao.

This is obviously a solemn and deliberate choice.

Ding Ke has been practicing for nearly thirty years and has a particularly profound feeling about the "Matthew effect" of the development of the brokerage industry. Although Fed Securities has reached the age of "twenty", it is still a veritable "small character". In the context of the strong Hengqiang industry, the head of the securities companies as a leader, the advantages of the vanguard continue to maintain or even expand, such as the Federal Reserve Securities such as small and medium-sized securities companies, to seek a broader space for development, to break the circle out of the front, only actively adapt to the regulatory orientation, in a specific field, a certain area of intensive cultivation, to make characteristics, to make strengths, to make expertise, to make fine products, in order to gradually improve the status of the industry.

Choosing Qingdao is a matter of course.

Born in 1962, Ding Ke has a wealth of experience in the industry, and has worked in Jinan Chemical Factory, Tiantong Securities, Guolian Securities, Huaying Securities and so on. In 2018, Ding Ke began to take the helm of Fed Securities.

Although he has been away from Shandong for many years, Dante ke has always paid close attention to Qingdao. In recent years, Qingdao as the country's only wealth management financial comprehensive reform pilot zone, multi-level capital market continues to exert force, the total number of domestic and foreign listed companies jumped to the first place in the province, the number of enterprises to be listed is also increasing, for securities companies, Qingdao is obviously a "rich mine" that needs to be deeply excavated.

On the other hand, Qingdao's eagerness to develop a multi-level capital market, the desire for fully licensed high-quality securities companies, and the rigorous due diligence, prudent decision-making, and efficient coordination of governments at all levels have also moved Ding Ke and Fed Securities.

From the beginning of the negotiation of relocation to the new business license, it took only half a year for Fed Securities to settle in Laoshan, creating an incredible "relocation speed" for financial institutions in the industry. Because of this, when Ding Ke communicates with his peers now, he always involuntarily promotes Qingdao and Laoshan, hoping that more people can feel the city's full sincerity for high-quality financial institutions.

In Ding Ke's view, Qingdao is not only the registered place of Fed Securities, but also an important strategic foothold and business resources. The introduction of relevant shareholders from the background of Qingdao State-owned Assets through capital increase and share expansion will not only enhance the capital strength of Fed Securities, but also open up a new development situation.

"Relying on Qingdao's superior policies and developed economy, the company will give full play to the professional advantages of capital market intermediaries, strengthen financial services for key industries, effectively play the direct financing function of the capital market, and serve Qingdao's industrial upgrading and economic development." In addition, Fed Securities will also base itself on the Qingdao and Jiaodong economic circles, take root in Shandong and radiate the whole country, and continuously strengthen the resource tilt and business support for Qingdao and surrounding areas, helping the Jiaodong economic circle to become a new growth pole for China's economy. ”

Resonating with the same frequency as the city and deepening the regional economy with differentiated, professional and characteristic services is the only way for small and medium-sized securities companies such as the Federal Reserve to achieve headwinds and emerge from the sun. Ding Ke was convinced of this.

Ding Ke, the first fully licensed legal person securities company in Qingdao and president of Fed Securities

●Qingdao as the country's only wealth management financial comprehensive reform pilot zone, multi-level capital market continues to exert force, the total number of domestic and foreign listed companies jumped to the first place in the province, the number of enterprises to be listed is also increasing, for securities companies, Qingdao is a "rich mine" that needs to be deeply excavated. From the beginning of the negotiation of relocation, to get a new business license, it took only half a year for Fed Securities to settle in Laoshan, creating an incredible "relocation speed" for financial institutions in the industry.

●Only by deeply cultivating the regional economy and developing in the direction of differentiated, specialized and characteristic boutique investment banks can small and medium-sized securities companies build unique core competitiveness and differentiated competitive advantages. Compared with national securities companies, regional securities companies have a longer-term role in assisting the development of enterprises

● Now only 6% of China's basic citizens receive professional investment guidance before buying funds, while the proportion in the United States has reached 50%, and wealth management will be an important market for brokers in the future

● The decline of traditional economic business, as well as the rise in demand for high value-added professional services (such as investment advisory services, wealth management, etc.), promote the transformation of the talent structure of the entire industry, and the competition for investment advisory talents and professional senior talents is the focus of securities companies to build their own competitiveness

<h1 class="pgc-h-arrow-right" data-track="18" > the "Soochow model" of small and medium-sized brokers to break through</h1>

At present, the securities industry is experiencing a critical historical period of saturation of traditional business and deepening changes in the capital market. Supervision promotes the differentiated development pattern of the industry from top to bottom, and clearly increases policy support for good institutions to support excellence, strength and expansion.

Under the wave of change, the securities industry is facing a reshuffle, which also provides an important opportunity for high-quality securities companies to break through. In the competitive landscape of the industry, small and medium-sized securities companies need to formulate accurate brand positioning and compete for market segments according to their own shareholder resources and characteristic business advantages.

Securities companies are the most important intermediaries in the capital market, and they are the value discoverers, credit builders and reputation defenders of entrepreneurship. Its support for the local economy is not only reflected in the contribution of employment opportunities and taxes, but more importantly, it has brought immeasurable effects to the compliance operation of local enterprises and the development of the local real economy.

With the development of China's capital market for more than 30 years, now securities companies have been different from the past, and the types of business are more abundant, including not only traditional brokerage business, investment banking business, but also emerging asset management business and self-operated business, of which brokerage business and self-operated business rely on the market, investment banking business depends on asset scale, and asset management business is based on traffic attraction.

In the context of the reform of the A-share registration system, the number of IPO projects has increased, the speed of review has accelerated, and the income level of investment banking business has also risen, coupled with the accumulation of assets of head securities companies, sufficient capital, many financing channels, brand advantages and other halos, which also makes it occupy an advantage in investment banking business, and naturally becomes the lucky one of the times dividend.

In addition to investment banking business, brokerage business and asset management business that conform to the development of the times are also biased towards the head brokerage side.

In the face of the squeeze of large securities companies, the transformation pressure of small and medium-sized securities companies is imminent, only according to their own resource endowments, deep ploughing of the regional economy, to the direction of differentiated, specialized and characteristic boutique investment banks, in order to build a unique core competitiveness, and differentiated competitive advantages, to achieve a breakthrough.

Enterprises can enter the capital market is not achieved overnight, and there needs to be an accumulation process. Compared with national securities companies, regional securities companies have a longer-term role in assisting the development of enterprises.

Soochow Securities in Suzhou is a securities company with distinct regional characteristics, and the development model of Fed Securities is in line with Dongwu Securities.

Soochow Securities is the only securities company under the State-owned Assets Supervision and Administration Commission of Suzhou Municipality, focusing on expanding the layout of the Yangtze River Delta region, with distinct regional advantages, brokerage and wealth management deeply rooted in Jiangsu Province, opening up Zhejiang Province, and actively promoting wealth management and digital transformation. The investment banking region has distinct characteristics, bond underwriting is the mainstay, equity financing is gradually developing, and the new third board business enjoys a first-mover advantage. As of July 2021, Soochow Securities has sponsored the underwriting of 30 Suzhou enterprises to go public, ranking first in suzhou's market share, helping 214 Suzhou enterprises to list on the New Third Board, and its bond underwriting scale accounts for 60% of Suzhou.

Soochow Securities was listed on the Shanghai Stock Exchange in 2011, and has successively consolidated its capital strength through diversified forms such as two fixed increases and one allotment of shares. According to the statistics of the Securities Industry Association, in the past ten years, the company's ranking in the domestic securities industry has increased from about 30th to about 20th, and its comprehensive strength has been steadily enhanced. The company's ability to use assets and liabilities is excellent, and the leverage ratio is higher than that of the industry.

Looking forward to the near future, we can also create a Breakthrough Qingdao "Fed Model" for small and medium-sized securities companies

<h1 class="pgc-h-arrow-right" data-track="67" > transition to wealth management</h1>

In order to achieve high-quality development, securities companies need to gradually get rid of their dependence on transaction commissions, provide more mature financial services, and transform to wealth management into the consensus of the securities industry.

At present, in terms of the supply of wealth management services, commercial banks, securities companies and third-party platforms are in a three-legged trend. Banks are the main battlefield of wealth management, with a complete range of products, mainly stable allocation products; third-party platforms have sprung up in the public fund market, mainly standard net worth products; securities companies are wealth management recruits, mainly equity funds and high-yield non-standard products.

Among the three, securities companies have the broadest development space in the wealth management market.

The main reason is that securities companies can give full play to the advantages of comprehensive financial services such as investment, investment banking and wealth management linkage, and have unique licenses, investment research capabilities, product development and investment management capabilities. In particular, the advantages of brokers are the professionalism of investment advisors and clearer customer profiles, which can provide customers with personalized solutions.

According to data, only 6% of China's basic citizens now receive professional investment guidance before purchasing funds, while the proportion in the United States reaches 50%, compared with the future development trend of the wealth management market is more favorable to brokers.

On the other hand, the transformation of wealth management is expected to help small and medium-sized securities companies overtake in curves. Through the transformation of wealth management, we can provide customers with comprehensive services covering trading channels, margin financing, product sales, insurance services, investment advisory services, etc., which will greatly expand the connotation and extension of brokerage business, jump out of low-level homogeneous competition, open up new tracks, expand profit growth points, and enhance marginal income effects.

In the face of industry competition and the background of Qingdao as the only wealth management financial comprehensive reform pilot zone in China, Fed Securities has determined the "three major strategies" of new wealth management, capital investment banking and B-end empowerment, and strives to become a promoter and leader in changing and optimizing the development of the securities wealth management industry.

The "New Wealth Management Strategy" is to design a set of targeted, step-by-step, executable and measurable action plans around the field of wealth management business in the context of the introduction of new asset management regulations, so as to concentrate the company's resources and form a leading advantage or unique competitiveness in this field.

"Capital investment banking strategy" refers to a set of targeted, step-by-step, executable and measurable action plans designed around the capital investment banking business areas to build the company's differentiated competitive advantage.

"B-end empowerment" refers to the integration of B-end (enterprise) customers, through the company and customers, customers and customers between resource sharing, complementary advantages, sharing customer business scenarios and traffic, with capital investment banking and new wealth management as strategic tools, to give new added value to both sides and related parties.

2021 is the first year of the 14th Five-Year Plan, but also the promotion of the full implementation of the registration system, coupled with the establishment of the Beijing Stock Exchange, securities companies should play a greater role. On the one hand, the financial needs of residents and the huge market space for wealth management, on the other hand, the liberalization of the registration system and the relaxation of mergers and acquisitions and restructuring under the dual-cycle pattern have brought more opportunities to the investment banking business.

As the only fully licensed legal person securities company in Qingdao, Fed Securities will adhere to strategic self-confidence in the future, and keep pace with the times according to regulatory policies and industry development, while basing itself on Qingdao and deepening Qingdao, focusing on making wealth management business bigger and stronger, increasing the layout of wealth management; actively undertaking investment banking business resources, and following regulatory requirements to achieve "return to responsibility".

<h1 class="pgc-h-arrow-right" data-track="68" > from "commission is king" to professional investment advisory services</h1>

The ecology of China's capital market is changing. In the past brokerage business, the channel income contribution was large, brokers for brokers is an important force for brokerage companies to obtain customers and income growth, but with the decline in industry commissions in recent years, the rise of Internet customer acquisition, the decline in the income contribution of traditional customer acquisition, the demand for brokers has decreased accordingly, while the industry has begun to provide high value-added professional services (such as investment advisory services, wealth management, etc.) Transformation, the demand for professional positions such as investment consultants has increased, which has promoted the transformation of the talent structure of the entire industry. It has forced institutions to increase the layout of investment advisory talents and cultivate investment advisory teams with asset allocation capabilities.

Compared with the positioning of traditional broker intermediaries, the positioning of investment advisors tends to be more specialized and customized, and it also needs to match the business development needs of brokers themselves.

Investment advisory talents are different from the positioning of securities brokers focusing on incremental customer development, and have high requirements for professional qualifications, which are far higher than those of brokers in terms of educational background, professional experience and qualification management. The competition for investment talents and professional senior talents is the focus of securities companies to build their own competitiveness. In this context, small and medium-sized securities companies are also attracting and retaining talents through various initiatives and improving the professionalism of employees.

The Fed settled in Qingdao, how to attract more investment advisory talents is also an urgent issue facing us.

There is a talent reserve for the early development of the enterprise, and the local cannot recruit suitable talents, which can be transferred from other places. But transfer is only a short-term strategy, how to let talents come to Qingdao to take root here? This requires the joint efforts of all sectors of society.

In addition to the development of the enterprise itself, a city needs to provide a good environment for the government to gather more high-quality financial enterprises and create a good ecology suitable for the flow and development of financial talents. The dilemma of financial talents encountered in Jiangsu in that year was solved by enterprises and governments working together.

It is hoped that through the settlement of the Fed, more and more securities companies can be driven to know Qingdao, understand Qingdao, and help the development of Qingdao's multi-level capital market; at the same time, it will also attract more high-quality investment advisory talents and wealth management talents to come here, so that Qingdao will gradually become a highland for financial talents.

Source| Qingdao Daily/Guanhai News Reporter Fu Jun Trainee Reporter Ding Qianqian