SFC announces 2013 Securities Company classification rating results

Absrtact: "Investor" reporter Shi Yumin the U.S. and Europe and other countries or regions to reduce the credit rating "+" number, the global capital markets must follow the trembling. The CSRC also ratings the securities companies every year, and its impact is not as hurricane as the ratings

"Investor" reporter Shi Yumin

The world's capital markets are shaken by a "+" credit rating cut in countries such as Europe and the US. The CSRC has also rated securities firms every year, and its impact, although not as hurricane-like, has been painful for the securities companies themselves.

July 12, the SFC released the 2013 Securities company classified rating results, compared with last year, Ping An securities, Nanjing Securities and Minsheng Securities and other 23 brokerages were demoted. Their 3 and 3 brokerages, with 6, 5 and 5 levels, were also the most likely to fall.

But the reporter also noted that Citic, CICC and other traditional securities companies remain in the senior queue, Guangzhou Securities, Zhongtian Securities, such as small and medium-sized brokers, the rapid growth of their ratings in the fierce competitive environment to break through.

23 were demoted.

Of the 114 securities companies, 18 companies merged with the parent company, and a total of 96 brokerages participated in the evaluation. Classified ratings showed 23 securities companies downgraded and 24 securities companies upgraded.

Securities companies are divided into a (AAA, AA, a), B (BBB, BB, B), C (CCC, CC, c), D, E and other 5 categories of 11 levels. A, B, C of the three categories of companies are normal operating companies, the classification and level of the division reflects only the company in the industry risk management ability of the relative level. Class D and E companies are potential risks that exceed the scope of the company's affordability and are subject to the risk management measures taken by law.

No three a brokerage winners, the highest level is AA, a total of 21. At present, has not obtained D, E-level brokerage, the lowest CCC level, a total of 11 brokerages "recruit", visible risk management capacity is poor. Century Securities, Japan letter securities, Aerospace Securities, Prudential-Hao Securities has been the lowest level for two consecutive years, open source securities, the Pacific and other securities companies for the new drop.

It is noteworthy that the downgrade of the strong brokerage, because this year securities companies were investigated by the SFC, mainly concentrated in investment banking sponsor field.

The 3 most heavily demoted brokerages have investment-banking projects to check. Ping An securities for Wanfosenko by the SFC in the history of the most severe punishment, Minsheng Securities, Nanjing Securities two brokerages are subject to the new Earth, the days of Technology IPO sponsorship project.

Classification level, Ping An securities from a to Class C, Minsheng Securities from BBB to C-class, Nanjing securities from a-level straight to the CC level.

Ping An securities related person in the interview with the "investor" reporter, said affected by the Wanfosenko incident, the company's rating will decline, the previous has made adequate preparation, and has been facing a possible downgrade, and actively with customers, partners to do a full communication, and strive to minimize the impact.

Among the top rankings are open source Securities, Pacific Securities, down three levels, and 4 brokerages, such as Hualong Securities, pioneering securities, source Securities and Tibet Securities, have dropped two levels.

China's letter Everbright to suffer next year

In the classification of the results, the most puzzling is the state letter securities, Everbright Securities unexpectedly escaped a robbery, their sponsorship project has been investigated by the SFC, but the rating of two brokerages did not change, still in AA level.

An investment banker in Shenzhen told the investor newspaper that the rating period for the securities companies was May 1 to April 30 of the previous year, and two brokerages were punished in June, so the results of next year's evaluation would be inferior to the plunge in Ping an securities.

Guo Xin Securities because did not urge Longi shares to fulfill information disclosure obligations, suspected violations, the June 13 this year by the SFC formally filed. The sponsor materials and items of the new declaration of the state securities are suspended from the date of filing. Everbright Securities due to the days of energy conservation allegedly financial irregularities were investigated. Because of the case, Everbright Securities preparations for nearly 2 years, and in the first 1 months before the release of the 7 billion Yuan directional additional project has been completely stopped.

The punishment of Ping An securities in May, why so bad downgrade? The investment bankers said that Ping ' an could be the result of the downgrade will be postponed, next year, but Ping want to solve the impact of Wanfosenko, no longer trail, so their own escalation level in accordance with the highest score was withheld.

It is noteworthy that this year's profit growth over CITIC Securities, the level of the decline of a level, and OTC innovative products received regulatory letter, business development income point and other factors. Haitong Securities Chairman Wang Kai explained that Haitong securities restructuring and innovation soon, emerging businesses to create a lot of profits, but these are not taken into account, the SFC is now in the revision of a more reasonable new rating method.

The downgrade will pay a double price.

"Although this is only the rules of the game in the securities industry, outsiders may not see the weight, but the brokerage itself is highly valued." "An investment manager at Orient Securities told the investor newspaper that some big companies, such as insurers, have rules to co-operate only with a type of broker, so business development will still be affected." ”

The Director of macro Strategy research of Great Wall Fund told Wida, the director of the Great Wall Securities Institute, that the impact of the downgrade was more than just that, with two types of impact.

First, a drop in classified ratings would result in more investor protection funds. According to the latest regulations, the Protection Fund in the size of more than 20 billion yuan, the 4 major categories of 10-level securities companies will be operating income of 0.5%, 0.75%, 1%, 1.5%, 1.75%, 2%, 2.5%, 2.75%, 3%, 3.5%, the proportion of the payment of protection funds. For three consecutive years, a class of securities companies have a certain degree of concessions.

The 2012 annual report of Ping An group shows that its securities business income is 2.711 billion yuan, according to the estimate, ping an securities need to pay more than 474.4 billion yuan Investor Protection Fund this year. Minsheng Securities last year's income of 1.148 billion yuan, the need to pay more than 14.35 million yuan, Nanjing Securities last year's income of 856 million yuan, to pay more than 17.12 million yuan. This is a huge drain on capital.

Second, the impact of innovative business development. According to the classification results of securities companies, the SFC has a direct link with the results of different types of securities companies to implement the regulatory policy of differentiated treatment, to carry out innovative business, to establish new sales offices and to obtain licences. For example, to carry out financing and margin, it must be a Class A brokerage. The internationalization of securities companies, such as the establishment or acquisition of branches outside the branch also need to have a class rating.

Guangzhou Securities into a dark horse

Some people are happy when they are worried. In the 2013 Securities classification rating results of the war, the level of growth most conspicuous to the number of Guangzhou securities. It has been the third year of continuous growth, 2011 is the bbb,2012 year of growth for the bb,2013 year is the increase of three for AA level, become a small number of 23 AA-level members.

Why a local brokerage located in Guangzhou, Guangzhou Securities, in the past 3 years to counter the trend of development? Guangzhou Securities has been expressed because of the transformation of innovation and three increase in capital.

Guangzhou Securities recently launched a large-scale capital increase plan, will increase the capital 1.5 billion yuan. This is the third increase in capital, 2009 and 2011 each have an increase in capital, the total amount of 2 billion yuan, the current company net capital of 3.8 billion yuan.

According to the data published by the China Securities Association, Guangzhou Securities Industry rankings have also been greatly improved, from the end of 2009, 70th and 69th rose to the end of 2012 38th and 27th, effectively enhance the competitive strength and industry status.

In addition to the Dark Horse Guangzhou Securities, the fastest-growing number of Zhongtian securities, the growth of 4 levels, from the C-level jump directly to the BB class.

Zhongtian Securities by Liaoning Orient Securities and trust companies in Liaoning, Liaoning Province, China Trust and Investment Co., Ltd. Liaoning Huasheng Securities assets in 2004, established by the reorganization, headquartered in Shenyang.

"Investor" reporter noted that the growth of the more rapid brokerage and gold and gold securities, state-run securities, Chuan-wealth Securities and Datong Securities, after 3 of the level of brokerages across to the first level, are AA, a, a.