Citic's medium-term net profit drop of 30% to sell equity will reduce revenue by 41%

Due to the increase in sponsorship and underwriting competition, the first half of the large IPO projects reduced, and other reasons, the first half of the sponsorship has failed to exert Citic Securities how? The first half of the year's net profit fell 31%, its profit growth rate in 13 listed securities in the penultimate, far behind the national gold, Hongyuan, investment and other brokerages.　　Even more troubling is that, because of "a reference", Citic Securities will also face a double profit source "severed arm"-Huaxia fund, CITIC Investment in the holding power will be Shang. CITIC Gold's commission rate fell 26% of CITIC Securities in the first half of the year's net profit decline is mainly due to the decline in brokerage and income.　　Among them, the brokerage business income reduced by 1.164 billion yuan, the self-employed business reduced 1.055 billion yuan, the management business reduced 17 million yuan, the underwriting business increased 405 million yuan, the Fund administration increased 427 million yuan.　　Affected in the first half of a shares fell 27%, the first half of CITIC Securities to achieve brokerage business income of 3.74 billion yuan, down 24%. National Securities and securities industry analysts believe that the first half of the brokerage business fell mainly from the decline in commission rate, due to the first half of the market downturn, the major securities companies to reduce the rate of commission to attract customers, CITIC Securities Commission rate from 2009 0.116% to 2010 0.0962%,　　Its subsidiaries, Citic Jintong, have even fallen by as much as 26.22% per cent, with commission rates as low as 0.075%, and lower commission rates as the main cause of the year-on-year decline in commission income and overall performance.　　Citic Securities to achieve the first half of the investment income of 394 million yuan, floating surplus of 53 million yuan, the income fell 66.1% year-on-year, of which two quarters of income only 5 million yuan.　　In the self investment structure of CITIC Securities, the proportion of bond-type assets is large, which guarantees the stable income to some extent. On the other hand, the ratio of asset allocation is small, showing that the company is not sensitive to market, and can not adjust flexibly according to market changes. Of the five operations, only underwriting and fund management business receipts have increased.　　The first half of the company underwriting income of 994 million yuan, an increase of 75.85% per cent, fund management fee income of 1.624 billion yuan, an increase of 28.85%.　　Citic Securities, which has been booming, has also suffered a steep plunge in its investment banking business.　　Although the income of underwriting business is increased by 405 million yuan, the performance of CITIC Securities investment Bank is generally compared with other listed brokerages.　　In the first half of the underwriting, only 4 IPO projects, 5 additional projects, market share 3.34%, Industry ranked 7th, down 5 from 2009, Bond underwriting, the first half of the completion of the main underwriting Project 13, market share 4.52%, the industry ranked 5th, compared to the 2009 decline 3. A securities industry researcher said that due to the increase in sponsorship and underwriting competition, the first half of the large IPO projects and other reasons, Citic Securities in the first half of the sponsorship underwriting has not been able to force.　　Disclosure of public information, the first half of Citic Securities only sponsor Hao-hua Energy, Haining Pischen, the industry tatsu, Hop Kang-frequency IPO listing. Statistics show that onHalf a year a total of 176 enterprises landed a-shares.　　"The future IPO will still be small and medium-sized enterprises as the main body, for such as Citic Securities to underwrite the main board of listed companies, if the investment banking sector can not be timely restructuring, will be disadvantaged," the brokerage researcher said.　　The sale of equity will cut 41% of revenue from its main business brokerage, proprietary and underwriting declines, and Citic Securities's Citic Investment and Huaxia fund also face the thorny issue of forced sale of shares under supervision.　　In order to solve the competition problem, Citic Securities must transfer at least 53% of its stake in Citic's holdings, according to the SFC's "one-click" rule. Citic Securities and CITIC Investment competition problem stems from the 2005-year Citic Securities to Huaxia Securities "to the market."　　August 12, 2005, Citic Securities and the construction of silver investment joint Chinese securities, holding its 60% and 40% respectively. In December 2007, the China Securities Regulatory Commission issued the "Security companies set up a subsidiary of the trial provisions" stipulates: "The securities Company and its subsidiaries, under the control of the same securities companies between the subsidiary shall not operate a conflict of interest or competition between the same business."　　"There is internal competition between CITIC Securities and CITIC Investment and must complete rectification to meet regulatory requirements." In accordance with the regulations of the Securities Investment fund Management company and the notice of the implementation of < Securities investment fund management company's management measures > Some issues, the fund management company shareholder's contribution proportion should conform to the CSRC's stipulation, in which the principal shareholder's maximum contribution proportion does not exceed 49% of the total capital contribution　　, the proportion of Chinese shareholder contribution of Sino-Foreign Joint fund management company is not limited.　　As the Chinese capital limited liability company in the form of registration and effective survival, does not belong to Sino-Foreign Joint Venture fund companies, therefore, Citic Securities as the largest shareholder of the maximum shareholding ratio of 49%. Despite a delay, in the SFC repeatedly urged by the CSRC, Citic Securities on July 30, has been determined to transfer 53% of CITIC Investment, Huaxia Fund 51% of the Equity exchange has been listed on the transfer.　　If the transfer of Huaxia fund is smooth, two equity transfer is expected to be completed within 2010 years.　　According to the measurement of the National Yuan Securities, CITIC Investment equity transfer has been determined to bring a one-time profit of Citic securities 8.586 billion yuan, if the second half of the Chinese fund 51% Equity transfer success, it is expected to bring about 5.5 billion yuan for Citic Securities one-time return, but at the same time Citic Securities will also face a large proportion of the　　The adverse result is that the sale of CITIC Investment 53% Equity and Huaxia Fund 51% will lead to the future consolidation of CITIC Securities revenue Reduction of 41%, combined net profit reduction of 47%, more importantly, CITIC Securities business scale will be greatly reduced. At the same time, Citic investment "run away" in essence to cultivate a strong competitor, and Citic Securities and the future Huaxia Fund board game will significantly reduce the company's control of the fund.