Leading Public Offering Emergency Shrinkage Inventory List Small Brokerage Lost Big Business Bend Overtaking Fear More Difficult
"It doesn't matter if you have to enter the list."
This is the instruction issued by the director of a small and medium-sized brokerage Institute to the salesmen.
In twenty-first Century, the economic report reporters learned exclusively from the fund industry in June 11th. A large public fund in Southern China shrinks the entry list of securities dealers, which will be restricted to 25 brokerages.
The news was confirmed on the same day by a broker dealer. "Two leading fund companies in Southern China are pushing ahead with similar strategies".
The commissions in the public offering fund have always been the main source of brokers' income. According to our reporter, these two fund companies are the head offices with a public offering scale exceeding 500 billion yuan, thus causing a great stir in the securities industry.
As a result, some small and medium brokerages have intensified investment in head funds.
According to the twenty-first Century economic report reporter statistics, in 2019, the brokerage realized a total of 7 billion 680 million commission income, an increase of about 500 million compared with 2018, with a growth rate of 7%. From the point of view of the commission income of public offering in 2019, the trend of concentrating on large brokerages has become increasingly evident. The top ten brokerages occupy 44.44% Commission seats, and the top twenty brokerages occupy 71.64% of the Commission seats.
Dozens of "losing business"
According to the twenty-first Century economic report's earnings report, the total amount of total commission paid by the two fund companies in 2019 ranked the forefront of the industry.
According to the sources, the formation of the 25 Securities Dealers' inventory is mainly based on the internal scoring of fund companies.
"Rank from high to low, and all of them are excluded from the list of cooperation." Its disclosure.
Take one of the public offering funds as an example. Last year, there were 50 brokerages in the warehouse, including CITIC,, GF, Founder Securities and Tianfeng securities. Among them, the total brokerage commission was more than ten million yuan.
Another fund company has nearly 4 hundred warehouses, Shenyuan Hongyuan, CITIC construction investment, Founder Securities, CITIC Securities and so on. Among them, the total Commission is over ten million yuan.
This also means that dozens of brokerages will lose cooperation opportunities.
"Despite the fact that most of the brokerage fees were shared by the head broker, the small and medium-sized brokerages could still share the soup." An analysis of a brokerage firm pointed out that the fund now shrinks the list of securities dealers, making small and medium-sized brokerages under pressure.
After the new wealth was suspended, in the first half of 2019, some buyers' organizations had arranged the list of research institutions in different sectors. Only the first few sellers squeezed into the buyer's organization could the seller study collect the Commission. If they could not squeeze into the list, it would mean "dry up".
This also means that despite the re start of the brokerage analysts' selection, it is still not possible to change the trend of the public fund's shrinking the list of securities dealers.
"Small brokerages are not easy to survive. This will be more concentrated on the head, not conducive to diversification, and is not conducive to the development and research of local brokerages. After hearing the news, a small brokerage analyst exclaimed to reporters. "Small brokerages usually have several star analysts, who have their own characteristics, but the industry coverage is not generally large, the level is not so average, and small businesses may be more focused on services than big ones."
How will this move affect the industry? Will other fund companies follow up?
In June 11th, in twenty-first Century, the economic report reporter contacted several securities companies and fund companies. Some people said they had not heard of it, and the chief economist of the securities company said it was not convenient to comment. Many people pointed out that this showed that the Matthew effect of the industry was aggravated, and all kinds of business resources were further transferred to the head broker.
There are close to fund channels to the twenty-first Century economic report reporter analysis, leading fund companies do not worry about sales channels, which is also the reason for this change.
"I think it might be the strength of several fund companies in the head. First, they have strong research ability. The research services they need may be provided by more than 20 brokerages. There is no need to accept the investment and research services of small and medium brokerages. Then the channel management is troublesome, and it is simply concentrated on some head dealers. But in addition to the top 10 fund companies, most fund companies need to expand their scale and may not easily give up some channels. After all, there are so many customers, so many outlets, although no bank sales ability is strong, but it is still a sales force that can not be ignored. It points out.
The "smoke" of broking business
In twenty-first Century, according to public data statistics, in twenty-first Century, after excluding overseas financial institutions and brokerages in Hongkong and international branches, the mainland's top 100 securities companies totaled 7 billion 685 million yuan, representing an increase of about 7.68% compared with 7 billion 137 million yuan in 2018.
The head broker is still strong.
In terms of total commission income, CITIC Securities, Changjiang Securities and CITIC construction investment ranked the top three, respectively, 531 million yuan, 401 million yuan, and 347 million yuan.
From the perspective of the growth rate of income, small and medium-sized brokerages continue to exert their strength. The typical CIC Securities Commission has increased by nearly 30 times; the growth rate of Huajing Securities Commission has exceeded 10 times.
In the future, it may be more difficult for small and medium brokerages to "overtake".
The main task of the Securities Research Institute at the beginning of its establishment was internal service, but the Research Institute of the Securities Research Institute was not clear enough, and the research reports provided by the self management or information management department were not taken seriously.
In 1998, the industry established a business model of changing Commission for research, and the Institute opened the way of external service to earn the fund's income. Public offering of sub Commission has become one of the most important sources of revenue for brokerage firms in the past twenty years.
"We still have a scoring system, with better service scoring, more pre ranking scores and more points to encourage brokers to provide more research services. It is mainly about service value and investment. Some small and medium brokerages have one or two industries doing well, and one or two industries have more research services, and they can also get many points. Some are characteristic, for example, you can invite some industry experts, so he helps some experts to share, and can also make up for the inadequacy of some industries. More often than not, there are many small and medium-sized brokerages. The words of big brokerages depend mainly on the strength of the whole, and the distribution of large brokerages is relatively complete. They also have the strength to dig out some good fellows and study the strength as a whole. Yang Delong, chief economist of Qianhai open source fund, told the economic report reporters in twenty-first Century on June 11th.
As to whether the brokerage commission will be reformed, Yang Delong said there is no new plan. "At present, there is not much consideration, or the scoring system will be allocated every quarter."
The "seek point" has become the suffix of many WeChat analysts. In fact, the share of brokerage fees is very low in the brokerage business, and it is becoming more and more difficult for sellers to earn commission.
"To tell you the truth, the service of the Institute is indeed a bit overcapacity. Actually, it does not need such a lot of research reports. If this can force some small and medium-sized brokerages to transform, it is also a good thing." A large broker told reporters.
According to its logic, there are more than ten brokerages in the European and American markets in terms of investment and research services. Investment research business is not very profitable, more is "earn cry", create influence. For small and medium brokerages, the research business may not be able to bring too much help to other businesses. Many businesses still need to have licences, and some licences are hard to get.
"You can focus on one particular business, transform to wealth management institutions, etc." The broker said.
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