China Fund News Chenxi
Strict regulatory signals continue to be released, and some securities firms have been filed by regulators.
On the morning of May 14, Bohai Securities announced that it had received a notice from the China Securities Regulatory Commission. On April 24, the China Securities Regulatory Commission decided to file a case against Bohai Securities on suspicion of violations of laws and regulations in the financial advisory business.
At present, Bohai Securities is still in the IPO process, and the current project review status is "inquired". Whether the CSRC's filing will have an impact on the progress of Bohai Securities' IPO is worth paying attention to in the market.
Let's see the details -
Bohai Securities was suspected of violating laws and regulations in the financial advisory business
On the morning of May 14, the relevant bonds of Bohai Securities issued the "Announcement on Receiving the Notice of Case Filing from the China Securities Regulatory Commission".
Bohai Securities said that it received the "Notice of Case Filing" from the China Securities Regulatory Commission on May 9. On April 24, the China Securities Regulatory Commission decided to file a case against Bohai Securities on suspicion of violations of laws and regulations in the financial advisory business. However, Bohai Securities did not announce the name of the specific project suspected of violating laws and regulations.
In terms of the impact on the company, Bohai Securities said that the company's current business situation is normal, and the incident has no adverse impact on the company's solvency. The company will actively cooperate with the relevant work of the China Securities Regulatory Commission and fulfill its information disclosure obligations in strict accordance with regulatory requirements.
It is understood that as early as 2016, Bohai Securities launched the IPO work and signed a listing guidance agreement with Everbright Securities. After a long queue failed to make the trip, the A-share registration system will be opened in March 2023, and Bohai Securities will also be transferred to the registration system for review.
At present, the status of Bohai Securities is still "inquired". Whether the CSRC's filing will have an impact on the progress of Bohai Securities' IPO is worth paying attention to in the market.
According to public information, Bohai Securities was registered in Tianjin Binhai New Area, opened in June 2001, and was restructured into a joint stock limited company in 2008. The controlling shareholder of Bohai Securities is Tianjin TEDA International Holdings (Group) Co., Ltd., and the actual controller is Tianjin State-owned Assets Supervision and Administration Commission. By the end of 2023, Bohai Securities has a total of 21 branches and 45 business departments, with branches all over the country.
In terms of performance, in 2023, Bohai Securities will achieve operating income of 2.101 billion yuan, a year-on-year increase of 48.39%; The net profit attributable to the parent company was 678 million yuan, a year-on-year increase of 35.27%. In contrast, Bohai Securities' performance growth rate in 2023 is superior among the six securities companies planning to IPO.
In terms of business structure, in 2023, Bohai Securities' proprietary business will account for 34.04% of all revenue, securities brokerage business will account for 19.40%, futures business will account for 19.11%, credit business will account for 13.87%, investment banking will account for 6.39%, fiduciary asset management business will account for 6.28%, alternative investment business will account for 1.92%, and private equity investment fund business will account for 0.24%.
According to the prospectus, Bohai Securities' financial advisory business mainly includes providing customers with various types of financing, financial arrangements, mergers and acquisitions, asset restructuring and other aspects of analysis, consulting, planning and other consulting services, as well as the new third board recommendation listing and continuous supervision and other related businesses.
During the reporting period, Bohai Securities, as a financial advisor, completed the maturity resale and resale financial advisory projects of a number of bonds such as "16 Wanda 02", "16 Wanda 03", "16 Wanda 01", "20 Wanda 01", "16 Wanda 01", "16 Sunac 07", "20 Mingtou 01", "20 Xiyuan 01" and "20 Xiyuan 03". In addition, during the reporting period, Bohai Securities completed the recommended listing projects of Jinyu Electric, Lingang Shipping, Shu Pengshi, Jinwanshixing, Zengguang Technology and other NEEQ companies.
From 2019 to the first half of 2022, Bohai Securities' financial advisory business achieved revenue of 345 million yuan, 66.9 million yuan, 20.4088 million yuan, and 36.1744 million yuan respectively.
Consolidate the responsibility of the "gatekeeper", and many brokerages have been filed and fined
In March this year, the China Securities Regulatory Commission issued the "Opinions on Strictly Controlling the Access to Issuance and Listing and Improving the Quality of Listed Companies from the Source (Trial)". It is mentioned that the "gatekeeper" responsibility of intermediaries should be consolidated, a normalized rolling on-site supervision mechanism should be established, and the quality-oriented practice quality evaluation mechanism of sponsor institutions should be used to make good use of the quality-oriented evaluation mechanism of listed companies.
Subsequently, the new "National Nine Articles" issued on April 12 also proposed to expand the coverage of on-site inspections of enterprises under review and related intermediaries, further consolidate the first responsibility of issuers and the "gatekeeper" responsibilities of intermediaries, and establish a "blacklist" system for intermediaries.
Recently, the regulatory authorities have released the new concept of "two strong and two strict" to further strengthen industry supervision, and fines in the securities industry have also been intensively implemented. From the perspective of business areas, traditional businesses such as brokerage, investment banking, and asset management have become the "hardest hit areas", and the frequency of violations in financial business, over-the-counter derivatives, proprietary and other businesses has also increased. In terms of regulatory measures, a number of institutions and responsible persons have been subject to administrative supervision measures such as issuing warning letters, ordering corrections, increasing the number of compliance inspections, being identified as unsuitable persons, and suspending the qualifications of sponsor business.
On the evening of April 16, Soochow Securities announced that it had received a notice from the China Securities Regulatory Commission. On April 8, the China Securities Regulatory Commission decided to file a case against Soochow Securities on suspicion of failing to be diligent and conscientious in the sponsorship business of Gome Communications and Zixin Pharmaceutical's non-public issuance of shares.
On the evening of May 5, Huaxi Securities announced that it received a decision on administrative supervision measures from the Jiangsu Securities Regulatory Bureau, suspending the sponsorship business qualification for 6 months. From the perspective of the cause of the case, Huaxi Securities was mainly involved in Jin Tongling's non-public offering sponsorship project in 2019, and failed to be diligent and conscientious in the practice process.
Editor: Captain
Review: Muyu