State Investment Capital (600061): Credit Securities Exchange 8 Billion.

Original title: brokerage financing another! Anxin securities borrowed convertible bonds to find 8 billion brokerages financing the layout of heavy capital business, now there are 9 listed brokerages totaling 89 billion 750 million, which is yet to be implemented.

In the big market of listed securities companies competing for "enriching blood", Anxin securities also borrowed shareholders and is about to welcome 8 billion yuan capital supplement.

In May 25th, CIC announced in its announcement that the company's 8 billion yuan convertible bond project has been approved by the securities and Futures Commission of the SFC. According to the previous issuance plan, the funds raised by the convertible bonds will be used to increase capital to the wholly owned subsidiary of Anxin securities.

It is worth noting that although Anxin securities plans to invest heavily in the direction of heavy capital business, including credit business and self business, it also generously produces 2 billion 300 million yuan in the layout of its subsidiary companies, of which 1 billion 500 million yuan will be invested to increase investment in other investment subsidiaries, which shows the opportunity to seize the science and create plate and expand the ambition of investment banking business.

Anxin securities increased capital 8 billion

The announcement indicates that the application of the 8 billion yuan convertible bond issued by the State Investment Commission has been approved by the Securities Regulatory Commission of the SFC and has not yet received the written approval document of the China Securities Regulatory Commission.

According to previous fund-raising arrangements, the total amount of fund-raising of the convertible bonds issued by the state will be no more than 8 billion yuan (including 8 billion yuan). After deducting the issuance cost, it will be used to increase capital to Anxin securities. By increasing the capital of Anxin securities, it will replenish its working capital, optimize its business structure, expand its business scale, enhance its market competitiveness and its ability to resist risks.

"In the development trend of traditional business competition and rapid growth of innovation business, the existing capital strength of Anxin securities has become a bottleneck restricting its realization of strategic development goals." State investment capital said that from the competition pattern of securities industry in recent years, the profitability of securities companies is highly correlated with capital strength, and appropriate capital replenishment will be conducive to enhancing the scale of net capital and the strength of working capital of Anxin securities.

In the 2018-2025 year development strategy plan of Anxin securities, it is mentioned that through three wheel drive and six big platform construction, three steps will be taken to achieve the goal of entering the top ten of the securities industry as a whole. It is also a long-term vision of becoming a first-class broker with the characteristics of "medium and large enterprises' all-round investment bank, O2O rich management of middle and end clients, and customer service of large and medium sized enterprises".

Four major inputs to the layout business

Compared with the financing methods such as fixed increase and rights issue, the funds available for issuing convertible bonds are relatively limited, so every pen should be used on the knife edge. The announcement shows that after the increase of Anxin securities, the main purpose of Anxin securities's fundraising funds can be divided into four directions:

First, it will not exceed 3 billion 500 million yuan for credit transaction business, expand the scale of credit transaction business, and enhance the development of credit transactions represented by margin trading, stock pledge repo trading and agreed repurchase securities transactions.

Second, no more than 2 billion 300 million yuan will be used to enhance the profitability of wholly-owned subsidiary companies and enhancers, of which no more than 1 billion 500 million yuan will be used to increase capital to the wholly owned subsidiary of Anxin Securities Investment Co., Ltd., which will be used to carry out alternative investment business. It will not exceed 800 million yuan for capital investment to the wholly owned subsidiary of Anxin Futures Co., Ltd., to carry out futures business.

Third, it will not invest more than 1 billion 700 million yuan for securities investment business, expand the scale of low risk investment business, actively develop fixed income securities investment business, and appropriately expand equity investment and derivatives trading business under the premise of controllable risk.

Fourthly, it will not exceed 500 million yuan for information system construction, increase input in information system construction, and enhance the overall information level of the company.

According to the 2019 annual report, the total business income of credit business during the reporting period was 2 billion 712 million yuan, up 16.74% from the same period last year.

Among them, the financing business grew steadily. By the end of 2019, the scale of margin trading and the scale of stock pledge business rose to tenth place, and the latter even increased 7.

In the aspect of proprietary business, in 2019, the total investment income of the securities business during the reporting period was 1 billion 209 million yuan, up 370.95% from the same period last year.

Similar to other listed brokerages, the direction of heavy capital business represented by credit business and proprietary business is becoming a business focus of Anxin securities in recent years.

At the same time, Anxin securities also plans to further improve the layout of its internal business through capital raising subsidiaries, of which the increase in investment for other investment subsidiaries is undoubtedly closely related to the opportunity to welcome the science and innovation board.

Dongfeng policy will become mainstream

Since 2020, two listed brokerages of Huaan securities and orient wealth have issued convertible bonds, issuing scale of 2 billion 800 million yuan and 7 billion 300 million yuan respectively. Including the 8 billion stake in the national capital investment, the total amount is about 13 billion 800 million yuan.

It is worth noting that although the convertible bonds were favored during the tight period, the scale of the stock market was also expanding rapidly. However, with the implementation of the new regulation of refinancing, more and more listed companies began to prefer to increase capital by expanding their policies. In particular, compared with fixed increase and rights issue, convertible bonds are not dominant in the scale of raising funds.

Wind data show that there are 9 listed brokerages with a total increase of 89 billion 750 million yuan waiting for implementation, including 4 tens of billions of projects.