Original Cai Yuekun Economic Observer
In the 2021 "China Bond" underwriter ranking list, China Securities, CITIC Securities and Bank of China took the top three, with a combined market share of 14.746%. In comparison, in the ranking of underwriters in 2020, Bank of China, Industrial and Commercial Bank of China, and China Merchants Bank ranked the top three. This year, the ranking of CITIC Construction Investment has risen by 3 places compared with last year, and CITIC Securities has risen by 5 places.
Author: Cai Yuekun
Cover image: Tu Wo Creative
16.6 trillion yuan, 2.36%, which is the total amount of domestic credit bond issuance in China in 2021 and year-on-year growth. In the third and fourth quarters of 2021, the total issuance data both exceeded 4.3 trillion yuan, achieving a new peak of single-quarter issuance.
From the perspective of securities market issuance, Bloomberg data shows that in 2021, Chinese companies will complete 617 IPOs worldwide, with a total raised capital of US$156.3 billion, and the scale of financing and the number of listed companies have both hit the same period. All-time high. In 2021, the total amount of funds raised by IPOs in Shanghai and Shenzhen will reach 647.1 billion yuan, an increase of 36.9% from the high point of issuance in the same period last year, setting a new record high.
For the growing capital market, how to divide the underwriting "cake"?
With the release of the 2021 Chinese capital market underwriter rankings according to Bloomberg data, the underwriting pattern of financial institutions will be revealed.
In the 2021 "China Bond" underwriters rankings, China Securities, CITIC Securities, and Bank of China are among the top three, with a combined market share of 14.746%. In comparison, in the ranking of underwriters in 2020, Bank of China, Industrial and Commercial Bank of China, and China Merchants Bank ranked the top three. This year, the ranking of CITIC Construction Investment has risen by 3 places compared with last year, and CITIC Securities has risen by 5 places.
Moreover, the total underwriting amount of securities companies (excluding local government bonds) is calculated according to the Wind caliber, and the underwriting amount of CITIC Securities and China Securities Both exceeded one trillion yuan, 1,212.45 billion yuan and 1,133.36 billion yuan respectively.
In addition, according to Bloomberg's 2021 "China Offshore Bonds" list, Bank of China once again leads the list with an unshakable attitude, with CICC and ICBC ranking second and third respectively. Minsheng Bank and Industrial Bank were among the top 20 with a trend of rising more than ten places over the same period last year. In the list of "offshore RMB bonds", HSBC, CARI, and Standard Chartered ranked the top three.
According to the reporter's understanding, the phenomenon of low-price competition in bond underwriting occurs frequently. A northern bond underwriter said frankly that when high-quality issuers are bidding for underwriters to issue bonds, the issuer assumes the role of the "Party A" of the securities company, and often the securities companies are reluctant to choose a low price. The competition in the current industry is very fierce. The low-price competition is also generally the competition between leading brokers. For small and medium-sized brokers, the competitiveness is generally relatively weak.
In terms of securities issuance, according to Bloomberg's latest list of underwriters for China's stock IPOs in 2021, CITIC Securities topped the list with an underwriting amount of 99.881 billion yuan, followed by CICC and CSC. The top three underwriters account for about 34% of the market, up from 24% in 2020, and the head effect is even more pronounced. Guangdong, Zhejiang, and Jiangsu are the main gathering places for companies that choose A-share listings in 2021.
A person from an investment bank in East China said that leading securities companies such as CITIC Securities, CICC, and China Securities have more obvious advantages in contracting projects on a daily basis, especially in the face of some developers.It is easier to gain the trust of the issuer when it is a larger issuer. In contrast, small and medium-sized securities firms are more likely to use their own resource advantages to explore projects of relatively small issuers in some places.
Top brokerage bond underwriting exceeds trillion
Wind data shows that as of December 31, 2021, the total stock of bond market in mainland China reached 130.40 trillion, an increase of 161,500 over last year 73.79 trillion in interest rate bonds, 42.71 trillion in credit bonds and 13.90 trillion in interbank certificates of deposit.
Wind's various bond issuance data show that in 2021, the growth rate of bond issuance in mainland China will be slower than in previous years, with a total of 61.63 trillion bond issuance throughout the year, an increase of 8% year-on-year. The issuance of interest rate bonds reached 19.84 trillion yuan, an increase of 5% over last year. Among them, national debt decreased slightly, policy bank bonds increased slightly, and local government bonds increased by 16% year-on-year. The issuance of credit bonds was 20 trillion yuan, a year-on-year increase of 4%. The cumulative issuance of interbank certificates of deposit was 21.80 trillion yuan, a year-on-year increase of 14%, making it the largest fixed income category this year.
According to the statistics of the total underwriting amount of banks according to Wind, ICBC ranked first with 1,651.46 billion yuan, and Bank of China's underwriting amount was 1,607.12 billion yuan, ranking second with an advantage of 211.38 billion yuan ahead of China Construction Bank.
According to the statistics of the total underwriting amount of securities companies according to the Wind caliber, CITIC Securities has obvious advantages, leading CITIC Construction Investment by 153.99 billion yuan, with a total underwriting amount of 1,563.4 billion yuan, and Huatai Securities ranked third.
The total underwriting amount of securities firms (excluding local government bonds) is calculated according to the Wind caliber. Ranked among the top three, with underwriting amounts of RMB 1,212.45 billion, RMB 1,133.36 billion and RMB 760.05 billion respectively.
According to the statistics of the National Association of Financial Market Institutional Investors on inter-bank debt financing instruments, China CITIC Bank ranked first with a value of 761.85 billion yuan, Industrial Bank ranked second with an underwriting amount of 709.36 billion yuan, and China Merchants Bank ranked second. Ranked third.
In terms of credit bond rankings, CITIC Securities took the lead with an advantage of 68.35 billion yuan ahead of China Securities Construction Investment, with a total underwriting amount of 12,017.1 yuan, and ICBC ranked third with an underwriting amount of 853.00 billion yuan.
Among the non-policy financial bond underwriting institutions, CITIC Securities ranked first with an underwriting amount of 362.29 billion yuan, China Securities Construction Investment ranked second with 268.4 billion yuan, and CICC ranked third with 248.47 billion yuan .
Regarding the differentiation of bond underwriters, a bond underwriter in Shandong believes that when local urban investment companies and state-owned enterprises issue bonds, these projects are basically among the top ten or top five securities companies in the industry. Therefore, there will sometimes be cases where leading brokerages fight "price wars" on underwriting rates. Small and medium-sized securities companies do more ABS when issuing bonds, or bond issuance projects of small and medium-sized private enterprises. This type of project is relatively more risky, and of course the underwriting fee is relatively high.
The top three IPO underwriters account for 34% of the share
From the perspective of the stock underwriting market, the market share differentiation has intensified, and the Matthew effect is very obvious.
In 2021, Chinese companies will complete 617 IPOs around the world, raising a total of US$156.3 billion. Among them, the scale of IPO fundraising in Shanghai and Shenzhen capital markets in 2021 hit a record high in the same period. In 2021, the total amount of funds raised by IPOs in Shanghai and Shenzhen will reach 647.1 billion yuan, an increase of 36.9% since the high point of issuance in the same period last year.
In the context of the fiery IPO issuance, the latest 2021 Chinese stock IPO underwriters ranking released by Bloomberg shows that CITIC Securities topped the list with an underwriting amount of 99.881 billion yuan, while CICC and CITIC Construction Investment were tight. Followed.
The above list shows that CITIC Securities, CICC and China Securities are among the top three, and the top three underwriters have a combined market share of about 34%. Guangdong, Zhejiang, and Jiangsu are the main gathering places for companies that choose A-share listings in 2021. Compared with the list of Asian (excluding Japan) stock IPO underwriters released by Bloomberg in 2020, CICC, CITIC Securities, and CITIC Construction Investment took the top three, with a combined market share of 24%. Obviously, the head effect of stock underwriting market share will be more obvious in 2021.
In addition, the reporter's statistics found that the top ten securities IPO underwriters accounted for 65.591% of the market, while there are currently 49 listed companies under the Shenwan industry classification, including Guosheng Financial Holdings and other participating securities companies. company, pureThere are also more than 40 securities firms in the market. In 2020, the top ten securities IPO underwriters accounted for 64.321% of the market. The market share proportion shows a trend of further concentration in the head.
In the Hong Kong market, the scale of Chinese-funded IPO financing performed poorly. According to statistics from Bloomberg, in 2021, 85 Chinese companies will complete IPOs on the Hong Kong Stock Exchange, raising a total of HK$323.9 billion, down 17.6% from HK$393.3 billion in the same period last year. The total number of IPOs for the year fell by 26 compared to the same period last year. Industry distribution is dominated by communications, healthcare and industrial companies. From the perspective of stock price performance, only Kuaishou performed well on the first day of issuance. Nine of the top ten issuers have so far fallen below their offering prices.
In the U.S. stock market, the IPO of Chinese stocks in the fourth quarter came to an end. In the fourth quarter of 2021, no Chinese-funded companies went public in the United States, and the total number of IPO companies and the amount of funds raised throughout the year were basically the same as the same period last year. Didi (DIDI US) topped the issuer's list with $4.435 billion in capital raised, but underperformed after its IPO. So far, 8 of the top ten fundraising companies have broken.
No matter whether the market is hot or cold, the differentiation of the stock underwriting business of Chinese-funded companies is intensifying, and it is increasingly difficult for small and medium-sized securities firms to occupy more shares in the IPO underwriting business.
For the development suggestions of small and medium-sized securities companies, Guosen Securities Research Report stated that on June 12, 2020, the China Securities Regulatory Commission will revise the "Regulations on Equity Management of Securities Companies" and "Regulations on the Implementation of Related Issues". Under the current background of the continuous entry of foreign capital, the revised draft will help guide comprehensive securities companies to strengthen institutional businesses that consume heavy capital (such as OTC derivatives business, stock option market making, etc.), and encourage characteristic securities companies to deploy capital-light investment The consumption of intermediary services improves the competitiveness of domestic securities companies by promoting classified management. Under the new classified supervision system, the securities industry will continue to be differentiated. Leading securities companies will continue to grow bigger and stronger, develop innovative businesses and enhance their core competitiveness; small and medium-sized securities companies will also develop their own characteristic businesses and give play to their competitive advantages, and the industry will form The development pattern of the coexistence of leading securities companies and featured securities companies.
Guosen Securities said that the leading brokerages can continue to maintain a high rating level because they have a complete compliance system and stronger risk control capabilities, and their main business income is in a leading position in the industry. Securities firms with stronger competitiveness in featured businesses, such as investment banking, wealth management, and innovative businesses, can also have advantages in rating, and small and medium-sized securities firms can rely on featured businesses to catch up.
Will you be the metaverse? The cow in the house
Layoffs, layoffs, layoffs, and real estate companies collectively "rescue" the rights
Stability is not the best career choice for young people
Economic Observer ∣ Rational and Constructive
Long press, identify the QR code, and pay attention
Original title: "The Scale of Equity and Bond Issuance Climbs the 2021 Underwriting Strength Ranking of Securities Firms Revealed"