Securities Brokerage Department PE survey: different attitudes

Pan Sching. Rumors of the first pilot PE business by 5 brokerages did not subside with the CSRC's denials.　　On the contrary, with the announcement of GF Securities will enter the PE business, the securities industry funds are increasingly eye-catching. Reporters through a variety of channels to understand that several brokers have their own industrial funds, but different forms.　　GF Securities (000776.SZ) also to be approved by the CSRC, more brokerages show the "interest" of industrial funds, but brokers said that the current securities department of PE is still in the securities of direct investment.　　One industry fund Personage pointed out that most brokerages have limited capital, and the state-owned PE has a lot of non-market demands, the maturity of the market environment is not enough, so the brokerage is basically unable to do industrial funds on a large scale.　　Brokerage industry funds form the end of February media reports, the regulatory authorities orally informed the Galaxy Securities, Citic Securities (600030.SH), CICC, Haitong Securities (600837.SH), Guotai and other 5 brokerages, will be the first pilot PE fund business.　　Subsequently, the Department of the Securities and Futures Commission denied. However, March 11, the Guangdong Securities Bulletin said that the wholly-owned subsidiary of the German Investment Management Co., Ltd. (hereinafter referred to as "Canton Letter De") will be with two companies, jointly set up the Coastal Industrial Fund, plans to raise capital of 202.5 billion yuan.　　Canton letter will be as a fund management company accounted for 51% of the major shareholders, and as a limited partner, the capital contribution of 400 million yuan.　　For a while, the Securities Industry fund has once again become a hot spot, in the current period of raising capital of the industry, quite remarkable.　　March 24, in the hot center of the Guangdong Securities said that the current Guangdong Coastal Industry Fund has not been approved by the SFC. Close to the Galactic securities people told reporters: "Galaxy Securities is very interested in industrial funds, but is still in the Envisioning stage, (Industrial Fund) company structure, system design is not done."　　"Citic Securities, Haitong Securities, Guotai, and the Outstanding Investment securities (600999.SH) have actually set up their own industrial funds (as shown in the table). China Merchants Capital Investment Co., Ltd. General manager Wen Feng revealed: "We and Xiang Investment Holdings (the full name of Hunan Investment Holding Group Co., Ltd.) cooperation of Xiangjiang Industrial Investment Fund, the situation is more special." At that time, Xiang investment holding funds, has been in the investment company. We go in, not the new fund, but the transformation, the previous company to do more standardized. So the first phase GP and LP are just the two of us. But in this way, we wait for the SFC's letter of no objection for half a year. Subsequently, our second phase Foundation raised money to the LP of the Society. "A large brokerage direct investment department to the reporter calculated paying:" Brokers want to certainly want to do PE, but some actually also not so positive. There is a big problem, that is, part of the stake should be transferred to the Social Security Fund free of charge. In this way, 10% of the public offering shares are transferred to the Social Security Fund, which accounts for about 2.5% of the total equity, while brokerages often take 4% or 5% of the shares. He pointed out that"Capital is always driven by profit." As long as the market is a high price/earnings ratio, brokerage money will continue to pour into the first market. But relatively speaking, we are still more enthusiastic about direct investment than industrial funds. "The other business of the brokerage is quite serious, but the brokerage industry fund, is not a new thing, has been involved in the brokerage, its industrial funds, and other business like the brokerage" everyone's face is very similar.　　But not the admission of the brokerage, more stay in the interest stage. In this respect, Wen Feng Analysis: "The history of state-owned industry funds is very short, there has been no unified supervision program, coupled with the brokerage industry funds with local government cooperation, different places, the requirements of local governments are different, so the performance of brokerage industry funds vary." "The three major problems in China's first industrial fund Bohai Industrial Fund, published in December 2006, so far less than five years." Such an immature industry, its practitioners must face some problems, brokerage department industry funds are no exception.　　In addition, they have their own unique problems. For the aforementioned state-owned shares of the transfer of the issue, interviewed by the securities dealers unanimously recognized. There are direct investors complaining, "for this reason, we invest in the safety line is 5%, at least 5% of the equity, we go in." "It can be said that the policy of state-owned shares has weakened the competitiveness of all state-owned backgrounds," said Pe/vc, a former large brokerage. Moreover, the impact of this policy is not limited to this. For the PE/VC of the state-owned background of the mixed ownership, the listed enterprises will be paid by the state-owned investors to undertake the transfer of the state-owned shares. In other words, the enterprises to be listed, all of them need to find all the state-owned investors to issue a commitment letter, agreed to assume the state-owned shares transfer obligations. This operation, very troublesome.　　Secondly, compared with the PE funds such as Banking department and insurance system, the capital strength of securities firms is weaker. One industry fund Personage told the Reporter: "The first two years, most of the industrial funds are difficult to raise money, Citic Securities industry funds spent more than two years to complete the initial fund collection, and investment is difficult, several industrial funds, have been slow to find the right project to vote." But the Mianyang Science and Technology fund has been relatively well invested. "Today, the difficulty of raising capital is not so serious." But the industry fund Personage pointed out: "The brokerage own money is not enough." General brokerage industry funds also raise a 203 billion, 35 projects are cast out, the securities companies can take out of their own capital is even more limited, so the face of state-owned LP discourse Right, the state-owned LP has a lot of non-market demand, often you fancy a project, the state-funded side said it can not vote that can not vote. "The last big question is, how do brokerages deal with" managing their own money "and" managing other people's money "?　　Securities Brokerage company is basically a wholly-owned brokerage, brokerage in the industrial fund is the GP, both are actually PE funds. In this respect, a number of brokers direct investment departments pointed out: "Direct investment and industrial funds, like the securities brokerage and the relationship between the capital, there are firewalls." As long as the system is designed reasonably, this is not a problem. Wen Feng also said: "China Merchants Securities Investment Bank, investment capital, Xiangjiang Industrial Investment Fund, there is a firewall between the three." However, some people in the industry pointed out that there is no simple analogy between a broker's proprietary and capital control (ie, Asset Management Department), brokerage and industrial funds.　　The performance of the securities brokerage is very transparent, there are basically daily rankings, and will be compared with the performance of the public offering fund, and the information of industrial funds closed a lot. "Fortunately, at present, the securities industry funds, many of the investment in the region and the industry restrictions, with the brokerage direct investment in the field is not the same." ”