From 2017 to 2019, what changes have taken place in the securities industry?
Recently, the "2017-2019 body" instantly maxed out the Internet, showing the comparison between two years ago and the present in the circle of friends, becoming the latest trend. In just two years, it triggered people's feelings about the passage of time.
This is true for individuals, and even more so for industry. In the era of information explosion, the financial industry is by no means stagnant for decades, but is constantly being updated. Based on 2019 and looking back at 2017, what new changes have taken place in the securities market and the brokerage industry in the past two years?
The number of A-share investor accounts increased from 119 million to 158 million
Although from 2017 to 2019, the Shanghai Stock Exchange and Shenzhen Stock Exchange’s The performance is very heart-warming, and there is no end to the ridicule of A-share investors in the market, but investors are so persistent in love with large A-shares, which can be seen from the number of accounts.
According to China Securities Journal, as of October this year, there were 158 million investor accounts in A shares, including 157.7 million natural person investor accounts and 374,600 non-natural person accounts. In January 2017, there were 119 million investor accounts in A shares, including 118.7 million natural person investor accounts and 329,600 non-natural person accounts. In other words, in the past three years, A-share natural person accounts have increased by 32.86%, and non-natural person accounts have increased by 13.65%.
The number of investors opening credit accounts is also increasing. As of October this year, there were a total of 5.057 million credit account investors for A shares, an increase of 800,000 investors from the 4.2489 million investors at the beginning of 2017.
With the increase in the number of investors, major securities companies are actively promoting the construction of investor education bases. Statistics show that in 2018, 102 securities companies' investment and education expenses accounted for 0.4% of the net income from the securities brokerage business during the same period, which was basically the same as the previous year. However, due to the decline in the securities market in 2018, the absolute value of the investment amount has decreased. The total investment and education expenditure of the securities industry for the year is about 357 million yuan, which is about 30% less than the previous year; the average investment per company is about It was 3.5 million yuan, a decrease of 30% year-on-year.
The number of employees has increased from 325,800 to 332,300
In the past three years, the number of securities employees has increased from 325,800 (April 2017 ), which increased to 332,300, an overall increase of 6,500. The overall increase in staff is not impressive, but from the perspective of the structure of employees, the changes are very large.
In the past three years, the number of securities brokers, securities brokerage marketers, and general securities business personnel has decreased. Among them, the number of brokers has decreased from 87,000 to 77,000, and nearly 10,000 employees have been lost. The number of persons is reduced by hundreds of people. The number of analysts, investment consultants, and sponsor representatives has increased significantly. The most obvious increase in staff is investment consultants, from 36,000 to 52,000, with an increase of 16,000; the largest increase is analysts, from 2,164 The number of people increased to 3256, an increase of over 50%; the number of sponsor representatives increased from 3304 to 3829, an increase of 16%.
From the decrease in the number of brokers and the increase in investment consultants, we can also see the general trend of brokerage business transformation. With the application of a series of new technologies and the impact of market trading activity, the commissions of brokerages’ traditional brokerage business have dropped significantly, and many brokerage companies are working hard to transform their brokerage business into wealth management.
From brokerage business to wealth management
Looking back at the brokerage business in 2017, the industry seems to be in a period of confusion. throughThe slogan of Ji's business transformation has been shouted for many years, but there is no recognized solution in 2017, and the trend of declining industry commission rate has made the brokerage business department of brokerage more anxious.
At that time, the ten-year commission war in the securities industry was nearing the end, and it was not surprising that Wansan's trading commission was given. Due to the large number of securities firms, lack of brand advantages and differentiated services, the transaction experience is highly homogenized. For the brokerage business line, market share and scale are the main basis for its assessment.
Previously, domestic account opening conditions were quite loose, and brokerages were blindly pursuing market share expansion. With the number of open accounts running forward, the brokerage business income has hardly increased. In 2016, the industry achieved a net income of 105.295 billion yuan from the agency trading of securities business throughout the year. By 2017, this number was further reduced to 82.092 billion yuan. This is certainly related to market conditions, but it is a sequelae left at the end of the commission war.
In the form of brokerage commissions "decreasing prices," the brokerage's mode of relying on the sky has been criticized by more and more industry professionals. In 2019, the direction of brokerage business transformation has become more obvious, and more brokerages regard wealth management as a new outlet for brokerage business.
In 2019 that has not yet ended, whether it is a large brokerage firm such as CITIC Securities, Galaxy Securities, etc., or Small and medium-sized securities firms such as Shanxi Securities, etc., have put the transformation of brokerage business to wealth management on the agenda. CITIC Securities’s move to rename the Brokerage Business Development and Management Committee to the Wealth Management Committee has caused widespread discussion in the industry. The list goes on.
Of course, wealth management is not a complete replacement of the brokerage business, but a new integration and upgrade of the business. After determining the direction, wealth management is increasingly included in the annual reports of securities companies, and it remains to be seen whether it can change the old path of brokers relying on the sky and create a new path for differentiated development.
The asset management scale of securities firms has shrunk from 18.77 trillion to 12.53 trillion
In recent years, the impact of a series of regulatory measures to reduce leverage and de-channel Under the circumstances, the scale of asset management of securities firms continued to shrink.
2017 is a watershed. According to data disclosed by the Fund Industry Association, by the end of the fourth quarter of 2016, the scale of securities firm asset management business was 17.58 trillion; by the end of the first quarter of 2017, the scale of securities firm asset management reached 18.77 Trillion yuan, an increase of 6.77% compared to 2016; since then, the scale of securities firm asset management began to shrink. As of June 30 this year, the private equity asset management business scale of securities companies and their subsidiaries was 12.53 trillion yuan, shrinking from its peak 30%.
This has to be mentioned the new asset management regulations issued by the regulators in April 2018. Following the release of the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions", the regulatory boots for the multi-billion-yuan asset management business Landing. In 2018, the securities industry’s asset management net income was 27.5 billion yuan, a year-on-year decrease of 11%. Today, improving the ability of active management, returning the industry to its roots, and achieving high-quality development is the proper meaning of the asset management business.
According to the ranking of securities firm asset management scale disclosed by the Fund Industry Association, although the overall management scale has shrunk, the average monthly active management scale has increased by half, and the average monthly active management scale accounts for the proportion of the management scale Most of them have improved from 2018, indicating that the asset management business structure is improving. Some analysts said that brokerage asset management should achieve differentiated development, increase the proportion of equity investment, and build a more complete asset management platform with the help of its multiple advantages in business types.
Proprietary business has become the sector with the largest revenue contribution
In the past three years, as the brokerage business income of securities firms has entered a bottleneck period, the proportion of self-employment income has been year by year Increase. From 2017 to 2019, the business with the largest proportion of the securities firm's revenue structure has changed, from a brokerage business to a self-operated business.
According to the operating data of 131 brokers in the first three quarters of 2019 released by the China Securities Association, securities investment income (including changes in fair value) (referred to as "self-operating income") continues to be the largest source of revenue. And the proportion is further increased.
In the first three quarters of the industry, a total of 87.871 billion yuan of self-operated income was realized, accounting for 33.64% of revenue. Since the third quarter of last year, self-operatedRevenue has replaced net income from securities trading as the business sector that accounts for the largest proportion of revenue. Over the past year, the proportion of self-operated income has further increased by nearly 6 percentage points compared with the same period last year.
Information technology investment is getting more and more attention
In recent years, financial technology is causing the securities industry to shift from a traditional fee-based model to a focus on professional services, deepening Diversified model transformations such as customer relations and utilization of network services. Insiders even pointed out that the securities industry is actually a financial technology industry.
Judging from the global development trend, the application of technology in the securities field has become the mainstream. At present, foreign investment banks are still increasing their investment in information technology construction: In 2017, JP Morgan Chase invested US$7.706 billion in technology. , An increase of 12.6% year-on-year; Goldman Sachs invested in 29 fintech companies in 2016 and 2017, and technical staff accounted for 46%.
Looking at the domestic situation, the total investment in information technology of domestic securities companies in 2017 exceeded 11.59 billion yuan, an increase of 11.7% year-on-year, and the total number of information technology personnel exceeded 13,000, an increase of 9.3% year-on-year; in 2018, Although the performance of many brokerage companies has experienced a sharp decline, their investment in information technology has increased. 98 brokerage companies have invested a total of 13.06 billion yuan in information systems, a year-on-year increase of 17%.
However, compared with banks, there is still a big gap between the securities industry’s investment in informatization. According to relevant data, the market scale of my country's financial information industry reached 186.42 billion yuan in 2017, of which the investment scale of banking industry informatization It accounts for 69.37% of the overall market, and the securities industry accounts for 10.23%.
At present, the informatization of my country's securities industry still focuses on system operation and maintenance and business support. The existing information architecture limits the system's scalability and business processing efficiency to a certain extent, and the industry development strategy also lacks a system. According to the plan, compared with the utilization rate, innovation capability, and security of information technology in the U.S. securities market, the domestic securities market has more to promote the transformation and upgrading of the industry’s information technology architecture, improve the industry’s core technology independent innovation capabilities, and meet the requirements of the national security development strategy. A lot of room for improvement.
The number of listed securities firms has increased from 25 to 36
Bring the time back to January 1, 2017, which is Central Plains Securities is officially listed in two days, and there are only 25 listed securities firms in the industry. Whether it is an established brokerage company Galaxy Securities or a new industry leader Tianfeng Securities, or the famous "99 Division" CITIC Construction Investment, at this time has not yet been on the stage of the A-share market.
From the perspective of market value, the total market value of the 25 listed securities firms at that time reached 1.80 trillion, CITIC Securities as the industry leader, the total market value also rushed to the first place, reaching 158.08 billion yuan, Guotai Junan and Guosen Securities followed closely with 141.749 billion yuan and 127.510 billion yuan respectively, while Shenwan Hongyuan and Haitong Securities also have a market value of 120 billion Yuan and above.
As an important component of the non-bank financial sector, investors can only pick and choose among the 25 "prosperous" brokerage stocks and other brokerage stocks, and the targets are relatively concentrated. Under the supervision and release of water, 11 securities firms have recently entered the capital market and opened new financing channels in the past three years.
However, limited by the market environment, in contrast, the market value of many brokerage firms has widened the gap in 2019. Except for CITIC Securities, Huatai Securities In addition to some securities firms, most of the securities firms' stocks have declined compared with the market value of 2017. Calculated based on the latest closing price, the total market capitalization of 36 listed securities firms is 1.95 trillion yuan. Although the average value has declined, the overall "gold absorption" effect is obvious.
2017-2019 of A shares! Investors are struck with emotion, excitement, melancholy, sadness, envy, jealousy
2017 to 2019! A shares fell by 6%, but funds rose by 23%! Sure enough, "It is better to buy funds than stocks"
(Source: Brokerage China)