In 2008H1, Chinese securities market achieved significant successes. Chinese assets securitization degree catches up with the international advanced level within only one year. At the end of 2008H1, the market value of Chinese domestic listed companies totaled RMB 32.7141 trillion, rising by 265.9% compared with that at the end of 2007. In 2007, Chinese GDP reached RMB 24.6619 trillion with a YOY growth of 11.4%. Based on this, in 2008H1, Chinese securitization ratio (stock market value/GDP) was as high as 132.65%, increasing by 89.96% YOY.
However, since 2008H2, the global economy and Chinese economy goes into recession due to the financial crisis. In 2009, the financial crisis has spread its effects into more developing countries and the real economy, attacking Chinese securities market.
In the previous three quarters of 2009, the sales revenue and net profit of Chinese 10 listed securities traders came up to RMB 35.98 billion and RMB 15.68 billion, rising by 25% YOY and 30% YOY respectively. In 2009Q3, the performance of Chinese listed securities traders dropped by 4% on a quarter-on-quarter basis. In 2009Q3, except Everbright Securities and Guangfa Securities, the sales revenue and net profit of the other 8 listed securities traders amounted to RMB 12.43 billion and RMB 5.16 billion, increasing by 108.2% YOY and 145% YOY separately. Their link relative ratios were 9% and -4% respectively. In 2009Q3, performances of CITIC Securities, Guangfa Securities, Hongyuan Securities and Sinolink Securities were increased on a quarter-on-quarter basic while performances of other securities traders were reduced.
The proportion of the self-operation revenue dropped obviously. In the previous three quarters of 2009, except Guangfa Securities, the net commission revenue and investment income of other listed securities traders reached RMB 22.72 billion and RMB 4.8 billion, rising by 50% YOY and 24.1% YOY respectively.
In 2009Q3, the brokerage commission rose by 21% on a quarter-on-quarter basis while the self-operation revenue dropped by 38.1%. As a result, in 2009Q3, the brokerage commission of listed securities traders accounted for 65.2% while the self-operation revenue took up only 10.1%.
In the previous three quarters of 2009, owing to the rapid decrease of the commission rate, the stock fund trading amount grew by 79.1% YOY; the net commission revenue of listed securities traders was RMB 22.72 billion, rising by 50% YOY. In the previous three quarters of 2009, the average stock fund commission rate of listed securities traders amounted to 0.136% with a YOY decline of 20%.
The stock public issue recovers rapidly. In the previous three quarters of 2009, the stock public issue amount and enterprise bond issue amount were RMB 117.9 billion and RMB 341.1 billion separately. The stock public issue amount and underwriting revenue of Chinese listed securities traders came up to RMB 1.48 billion, dropping by 13% YOY.
In 2009, innovative business develops fast. Among Chinese listed securities traders, the innovative business of CITIC Securities develops in a large scale with the revenue proportion of 16% while it was 13% for Everbright Securities. Due to the rapid asset scale expansion resulting from the approval loosening on collection asset management, in 2009Q3, the asset management revenue of securities traders rose by 14% on a quarter-on-quarter basis.
In general, affected by the financial crisis and Chinese rising economic expectation, Chinese securities industry will restore to some degree, but it will not rise significantly.
The report mainly focuses on
- Present situation of Chinese securities industry
- Introductions of the market segments of Chinese securities industry
- Introductions of the main local enterprises in Chinese securities industry and their operation status
- Introductions of the main foreign-funded enterprises in Chinese securities industry and their operation status
- Situation of M&A in Chinese securities industry
- Predicts on the development of Chinese securities industry
For more details of the report: http://www.shcri.com/reportdetail.asp?id=325