Brokers forced to accept internet financial pressure challenge

After the internet financial boom swept through the traditional banking business, internet finance began to put pressure on the brokerage business sector.

On February 20, the National Gold Securities and Cooperation launched the first Internet financial products-"Commission treasure", investors can open an online account on the Tencent stock channel, they can enjoy two out of 10,000 of the transaction Commission concessions. Compared with the rate of commission, which is generally around seven out of 10,000 to eight of the market, it is clear that this makes most brokerages feel pressured.

For the "commission treasure" triggered by the price war, in the March 31 performance press conference, Haitong Securities Chairman Wang Kai responded that although some retail demand for lower commission standards on the Commission income has some impact, but for the big Customer commission income is not significant, mainly because of the company's large customer dependence is higher.

A recent CITIC Securities report shows that from February 20 afternoon officially launched to March 6 in just half a month, "Commission treasure" number of accounts has reached 254,700 households, the average daily account 17,600, and the number of open accounts is rising trend.

The Galaxy Securities brokerage business President Zhu Yongqiang also said on the same day, the company's latest one months of brokerage income data show that the number of accounts in the "Commission treasure" just launched one or two weeks have been affected, but the current number of accounts has been unchanged in the fourth quarter of last year.

Face the price war

Wang Kai revealed that the plan with Internet companies to carry out the Internet financial business, including online accounts, transactions and sales, expect the year with Alibaba (to create wealth for customers, Commission PO only from the cost of saving transactions to attract customers, lower level of competition.) At present, the average age of the Internet financial customer base is only 27 years, while the average age of the company's existing clients is 35 years.

In order to attract the customer group, the Galactic Securities Board has commissioned the Strategic Committee to conduct relevant research, and plans to develop specific implementation plan in one months or so.

In the downward trend of the rate of Commission and the increasing competition of the same trade, many major brokers are actively deploying business transformation to find new business growth points. such as the gradual reduction of Commission and fee income mainly for the light capital business ratio, and enhance the interest income and net investment income as the main proportion of heavy capital business.

2013 earnings showed that the commission and fees of Galaxy securities contribution to the proportion of income is about 59.81%, significantly lower than the 2010 81%. Last year, Haitong Securities from the Commission and fees accounted for a slightly higher share of revenue, but the ratio is still only 52.73%, Citic Securities from 2012 to 54.24% down to 52.76%.

Investment banking slump

The suspension of the domestic a-share market last year caused the investment banking revenues of several major brokerages to be hit. Galaxy Securities in 2013 investment banking revenue contribution of 411 million yuan, a sharp decline of 41%, Haitong Securities investment banking business income also fell 4% to 716 million yuan. By contrast, Citic Securities is a solo show, 2013 recorded investment bank income of 2.12 billion yuan, an increase of 18%.

As the IPO resumed this year, brokerages expressed optimism about the growth prospects of investment banking. Citic Securities previously said that the company's IPO project reserves of 26 in 2014, investment bank revenue is expected to grow significantly.

In order to expand the financing channel, Haitong Securities 2013 years does not contain customer funds leverage ratio of 2.01 times times, than a year earlier growth of 36%, but relative to bank level is still low, this year plans to issue 11 billion yuan corporate bonds, expect regulators to further open the financing channels, but stressed that the current liquidity is no problem. Haitong last year weighted average net asset yield of 6.7%, slightly ahead of Citic Securities 6.02%.

Galaxy Securities has a private leverage ratio of only 1.7 times times, at a safe level. After the Hong Kong listing was completed in May last year, the company raised a total of 6.5 billion yuan, and this year plans to issue no more than 9.5 billion yuan in corporate debt, 20 billion trillion in bond financing and 7.3 billion yuan in subprime debt. Galaxy 2013 weighted average net asset yield of up to 9.69%, far more than the same industry level.

(Edit Yu Xiaona)