Acquire the equity of Galaxy Fund and transform the large asset management of Galaxy Securities
Source: Time Weekly
Time Weekly reporter Sheng Xiaolan from Shanghai
On July 19, Galaxy China According to the securities announcement, it is proposed to acquire 50% of the equity of Galaxy Fund from the controlling shareholder Galaxy Financial Holding, which is the controlling shareholder of the company. This transaction constitutes a related party transaction and is not expected to constitute a major asset restructuring.
Galaxy Securities said: "The purpose of this transaction is to enrich and improve the company's asset management business product line, enhance the coordinated development of the company's brokerage business, research, financial product sales business and fund business, promote the implementation of the company's" big asset management "strategy, and better meet customers' comprehensive wealth management needs. This transaction will help optimize the company's income structure and enhance its core competitiveness. "
According to the announcement, the purchase price will be confirmed based on the evaluation results of the third party institution employed. At present, the asset evaluation has not been completed and the final transaction price has not been determined. This acquisition is finally subject to the plan approved by the Board of Directors and approved by the Ministry of Finance.
On the same day, 21 new branches of Galaxy Securities were approved by China Securities Regulatory Commission. Some insiders pointed out that the development of public fund business by securities companies can increase the share of active management business, and also provide assistance for the transformation of securities brokerage business to wealth management.
Large asset management transformation
According to the public information, Galaxy Financial Holding was jointly initiated by the Ministry of Finance and Central Huijin Investment Co., Ltd. with the approval of the State Council and was established in August 2005. According to the statistics of Caihui big data terminal, at present, the registered capital of Galaxy Financial Holding is 10.985 billion yuan, of which the contribution proportion of Huijin, the Ministry of Finance and the National Social Security Fund Council is 69.070%, 29.046% and 1.884% respectively.
As a state-owned financial enterprise directly under the central government, the operating revenue of Galaxy Financial Holding under the consolidated criteria in 2015, 2016 and 2017 was 27.15 billion yuan, 13.891 billion yuan and 12.165 billion yuan respectively. As of December 31, 2017, the total assets of Galaxy Financial Holding under the consolidated criteria were 261.652 billion yuan.
As the subject of related party transactions, Galaxy Fund's revenue in 2017 was 584 million yuan, with a net profit of 179 million yuan. Up to now, shareholders of Galaxy Fund include Galaxy Financial Holdings (holding 50% equity of Galaxy Fund) PetroChina Natural Gas Group Co., Ltd. (holding 12.5% equity of Galaxy Fund), Capital Airport Group Co., Ltd. (holding 12.5% equity of Galaxy Fund), Shanghai Urban Investment (Group) Co., Ltd. (holding 12.5% equity of Galaxy Fund), Hunan TV and radio media Limited liability company (holding 12.5% equity of Galaxy Fund).
Galaxy Securities said that the equity ownership of Galaxy Fund held by Galaxy Financial Holding was clear, and there was no mortgage, pledge or other restrictions on transfer.
The transformation strategy of "big asset management" of Galaxy Securities began in 2017. Under the new situation of strict supervision last year, Galaxy Securities began to implement a three-year strategic transformation. In accordance with the strategic goal of "building an aircraft carrier broker and building a modern investment bank", it positioned a new business model of "two wheel drive and coordinated development", and established a large brokerage, large investment bank, large asset management, large investment and research institute architecture system.
Among them, the transformation of "big asset management" has yielded fruitful results. In 2017, Galaxy Securities increased its asset management subsidiary, Galaxy Jinhui, for many times. In April 2017, Galaxy Securities increased its capital to Galaxy Jinhui by 500 million yuan. In August, the Board of Directors approved a proposal to increase its capital to Galaxy Jinhui by another 1 billion yuan. At the same time, it increased its net capital guarantee to Galaxy Jinhui by 2 billion yuan.
At the same time, its asset management scale and income level have increased significantly. By the end of 2017, the scale of Galaxy Gold's asset management had reached 337.532 billion yuan, a year-on-year increase of 52.4%, and the industry ranking had risen from 24th to 13th. According to the annual report, the asset management business income of Galaxy Securities in 2017 was 693 million yuan, up 53% year on year. Among them, the scale of collective asset management was 38.128 billion yuan, the scale of targeted asset management was 289.558 billion yuan, the scale of special asset management was 9.847 billion yuan, and the number of managed products was 375. The asset management business also became the fastest growing business in the 2017 annual report.
However, the overall performance of Galaxy Securities has continued to decline in recent years. The annual report shows that in 2017, the operating revenue of Galaxy Securities was 11.344 billion yuan, down 14.32% year on year, and the net profit attributable to shareholders of the parent company was 3.98 billion yuan, down 22.76% year on year. In the first quarter of 2018, the operating revenue of Galaxy China was 2.618 billion yuan, a year-on-year decrease of 11.69%, and the net profit attributable to shareholders of listed companies was 1.014 billion yuan, a year-on-year decrease of 9.22%.
After the acquisition of 50% equity of Galaxy Fund, the "big asset management" layout of Galaxy Securities will be more perfect, which will also help to improve the overall performance. After the completion of the acquisition, Galaxy Securities will become a securities firm with both asset management subsidiaries and fund subsidiaries, and Galaxy Fund will also become another public offering fund of securities firms.
21 new business departments
At present, the public fund business has become one of the important development directions of asset management of securities companies. Wind data shows that 11 securities companies or asset management subsidiaries of securities companies have issued public fund products among the 13 securities companies with public fund qualification. By the end of June this year, asset management of securities firms had issued a total of 99 public fund products, with a total scale of more than 193.096 billion yuan, which is about to exceed the threshold of 200 billion yuan.
The asset management personnel of a securities firm in Shanghai pointed out to the reporter of the Times Weekly: "In the past, the asset management of securities firms relied on channel business and actively managed products were relatively weak. The development of public offering fund business by securities firms can increase the share of active management business, and can also help securities firms transform their brokerage business to wealth management."
While laying out the "big asset management" strategy, the "big brokerage" strategy of Galaxy Securities has not been relaxed. On July 19, China Galaxy Securities disclosed that it had been approved to set up 21 new C-type securities business departments in Beijing, Shanghai, Shenzhen, Zhuhai and other places, with the business scope of "securities brokerage; securities investment consulting; securities investment fund sales; financial advisers related to securities trading and securities investment activities; consignment sales of financial products; margin trading; Securities underwriting and recommendation (only for project contracting, project information transmission and recommendation, customer relationship maintenance and other auxiliary work) ".
The newly established business departments of Galaxy Securities this time are all C-type business departments. According to the Regulations on the Classified Supervision of Securities Companies, the risk management ability of C-type companies only matches the current existing business, and they do not have the ability to carry out new business or business expansion for the time being, and the securities business department applied for establishment will be limited to the jurisdiction of the local securities regulatory bureau.
According to the latest statistics, Galaxy Securities has 474 securities business departments with a market share of 4.23%, making it the single securities company with the largest number of branches in China. After the approval of 21 new securities business departments, the total number of Galaxy Securities business departments will reach 495. At present, Essence Securities Guotai Jun'an Securities, Zhongtai Securities and CSC The number of securities business departments also exceeded 300.
In fact, the brokerage business of Galaxy Securities has always been its traditional advantage business. According to the 2017 annual report data, its brokerage business income was 8.758 billion yuan, accounting for 77.20% of the business income, a year-on-year decrease of 11.99%.
Compared with peers, the brokerage business of Galaxy Securities is also in a leading position. According to the unaudited data of the Securities Association of China, in 2017, its net income from acting as an agent in securities trading ranked second in the industry, with a market share of 5.28%; The total market value of customer custody securities is 2.94 trillion yuan, with a market share of 7.28%, ranking second in the industry; The balance of customer's deposit margin account was 49.603 billion yuan, with a market share of 4.67%, ranking fourth in the industry. According to the data of Shanghai Stock Exchange and Shenzhen Stock Exchange, the total trading volume of the company's stock funds ranks the fifth in the industry, with a market share of 4.57%; As of the end of the reporting period, the balance of margin trading ranked fourth in the industry, with a market share of 5.56%.
At present, the brokerage business of major securities companies is transforming to wealth management business, so expanding branches, adding institutional business and adding business departments are the top priorities. At the same time, the parallel of "online" business and "offline" business is becoming an important way for major securities companies to layout the national market, expand market share and expand other businesses.
Editor in charge: Li Feng
