Faster approval! Galaxy Securities won the pilot qualification for cross-border business
Original: Lin Ying
With the internationalization of RMB and the further opening of China's capital market, the pace of "going global" of the securities industry is gradually accelerating.
Today evening, Galaxy Securities announced that its cross-border business pilot qualification was approved by the CSRC. This is also the sixth securities firm approved for this business qualification since this year. Before this year, only citic securities and Haitong Securities It was approved in 2014 and 2015, while in 2016 and 2017 it was blank. In other words, there are now 8 listed securities companies approved for cross-border business. Behind the accelerated approval speed of cross-border business of securities firms, it also demonstrates the determination of the regulators to actively promote the development of overseas business of securities firms this year.
Galaxy Securities won the pilot qualification for cross-border business
Galaxy Securities pointed out in the announcement that recently, the company received the Reply of China Securities Regulatory Commission on Matters Related to the Pilot Implementation of Cross border Business by Galaxy Securities. According to the reply, the CSRC has no objection to the following businesses of the Company:
（1） To participate in the trading of financial products on overseas trading places with their own funds, and to invest in other overseas financial products or instruments that are allowed to be invested by qualified domestic institutional investors.
（2） Sign master agreements for OTC financial derivatives transactions with domestic and overseas counterparties, and participate in OTC financial product transactions.
It is worth noting that Galaxy Securities is also the sixth securities firm to be approved for this business qualification this year. Before this year, only CITIC Securities and Haitong Securities were approved for this business qualification in 2014 and 2015, while in 2016 and 2017, there was no such qualification.
Since this year, cross-border business of securities companies has broken the ice, with good news. As early as January this year, Guotai Jun'an and Huatai Securities After more than two years, it finally won the pilot qualification for cross-border business. In May this year, gf securities , CICC and China Merchants Securities They have also been approved successively. In addition to CITIC Securities and Haitong Securities, which were approved in 2014 and 2015, there are now 8 listed securities companies approved for cross-border business.
8 securities companies can carry out cross-border business of nearly 100 billion yuan at most
At present, securities companies have formed a pattern of paying equal attention to commission business, capital intermediary business and self owned capital investment business. The scale of net capital has become the key to restrict the development of the company. According to the requirements of the CSRC, Galaxy Securities should strictly control the business scale when conducting cross-border business, which should not exceed 20% of the company's net capital. The relevant business scale should be calculated according to the investment scale of the same type of business in China as specified in the Measures for the Management of Risk Control Indicators of Securities Companies, and the risk capital reserves should be calculated in strict accordance with the regulatory provisions.
In fact, the development of cross-border business requires a higher level of risk management for securities companies, and the 20% red line is more from the perspective of risk prevention.
According to the 2018 semi annual report of Galaxy Securities, as of June 30 this year, the net capital of Galaxy Securities was 55.6 billion yuan. Based on 20% of the net capital, the largest cross-border business that Galaxy Securities can carry out at present is 11.12 billion yuan. This scale is probably in the middle of the approved securities companies.
Specifically, let's see how many cross-border businesses can be carried out by the approved securities companies.
It can be seen from the table that at present, the total cross-border business scale of 8 brokers is 97.282 billion yuan, of which 7 have a scale of more than 10 billion yuan. Only CICC has a small business scale of 4.812 billion yuan. Guotai Jun'an, CITIC Securities and Haitong Securities, the three front-line securities companies, ranked in the top three by virtue of their net capital advantage.
Cross border business becomes a new force for securities business
Shanxi Securities It is believed that the approval of securities companies to carry out cross-border business is a powerful attempt for securities companies to integrate into the global financial system and connect with the international capital market, while large comprehensive securities companies have obvious advantages in new business development. Especially when the traditional brokerage business is declining, most securities companies regard overseas business as a new starting point for expanding business, and have achieved good results.
According to the latest statistics of the China Securities Association, "the proportion of securities business income of overseas subsidiaries of securities companies in operating income in 2017", in 2017, the proportion of securities business of overseas subsidiaries of Haitong Securities and CICC accounted for more than 20% of operating income, 25.58% and 20.67% respectively, and CITIC Securities also exceeded 10%, 12.24%. In addition, Guotai Jun'an, Huatai Securities, China Merchants Securities and GF Securities accounted for 9.23%, 8.05%, 6.69% and 5.41% respectively.
It can be seen that Haitong Securities accounts for the highest proportion of overseas business. According to the data in the semi annual report, in the first half of 2018, Haitong Securities realized an overseas business revenue of 2.067 billion yuan, an increase of 9.64% over the previous year, accounting for 18.89% of the total revenue, while the growth rate of the company's domestic business revenue in the same period was negative.
Zhao Yao, an analyst of Ping An Securities, said in an interview with the media that the overall proportion of overseas business income of large securities companies is expected to have further room for improvement in the case of cross-border business development appeals. And some analysts said that the approval of cross-border pilot business is conducive to optimizing the income structure of securities firms and reducing their dependence on traditional business.
The supervision has also become more and more active in the "going global" of securities companies, and has given relevant policy support. According to the Regulations on the Classification and Supervision of Securities Companies (2017 Revision), if the securities business income of overseas subsidiaries of securities companies accounted for 40%, 30% and 20% of the operating income in the previous year, and the operating income was above the industry median, 4 points, 3 points and 2 points will be added respectively. As we all know, every point in the securities classification is the "lifeblood", and the significance of this encouragement is self-evident.
Editor in charge: Wang Han
