Shenwan Hongyuan's investment banking business has made great progress. This year, it will continue to make efforts to strategically deploy large-scale investment banking business, and strive to build an investment banking team with a scale of 1,000 people within three years.
Since 2018, Shenwan Hongyuan Investment Bank has carried out drastic reforms in terms of mechanism, personnel and business. In 2020, Shenwan Hongyuan will launch a package of integration plans for the major investment banking business lines. Shenwan Hongyuan Securities' professional investment banking subsidiary, Shenwan Hongyuan Underwriting and Sponsoring Company, recently completed management adjustments. Shenwan Hongyuan Investment Bank will further attract outstanding talents and strive to build an investment bank team with a scale of 1,000 people within three years.
In the past two months, 14 equity business deals have been intensively held
In 2020, Shenwan Hongyuan Investment Bank continued to make efforts, with 14 deals in the past two months The equity business has been intensively held, including the IPO of Zhongkong Technology Science and Technology Innovation Board, Aolaide Science and Technology Innovation Board IPO, Shangwei New Materials Science and Technology Innovation Board IPO, Kangtai Medical Growth Enterprise Market IPO (the first batch of registration system), Xiangfenghua Growth Enterprise Market IPO Hewalrus New Materials SME board IPO, as well as Fangda's selection layer, Xin'anjie selection layer, Kaitian Gas selection layer, Jianbang's selection layer, Hengtong Optoelectronics 5.1 billion non-public offering, GCL Integration 5 billion Yuan non-public issuance, Luen Tai Environmental Protection non-public issuance and Qizheng Tibetan medicine convertible bonds, the quality and efficiency of project execution continued to be optimized, and the company's business as a whole showed a rapid development trend.
As a leading securities firm, Shenwan Hongyuan Securities has made continuous efforts in recent years to strategically deploy large investment banking business, and is committed to accompany customers to grow and build a first-class investment bank.
In 2019, Shenwan Hongyuan's investment banking business also achieved remarkable results: the investment banking business income was 1.038 billion yuan, an increase of 26.28% compared with 822 million yuan in 2018; the underwriting and sponsoring business income was 793 million yuan, a similar Compared with 606 million yuan in 2018, an increase of 30.86%. For the first time, the mergers and acquisitions and restructuring business ranked among the top five in the industry; the lead underwriting projects and amount of corporate bonds doubled compared with the previous year, and was rated as an excellent lead underwriter for corporate bonds by the Shenzhen Stock Exchange.
In terms of equity financing, Shenwan Hongyuan completed equity financing of RMB 13.879 billion in 2019, a year-on-year increase of 7.74%, and the industry rankings of various business categories rose rapidly. Among them, there are 6 M&A and restructuring projects that have been reviewed and approved by the M&A and Restructuring Committee of the China Securities Regulatory Commission, and the industry ranking has risen by 13, ranking among the top 5 in the industry for the first time.
In terms of bond financing, Shenwan Hongyuan completed 18 corporate bond lead underwriting projects, ranking 7th in the industry, with a lead underwriting amount of 9.229 billion yuan. Completed 61 corporate bond lead underwriting projects with a lead underwriting amount of 45.205 billion yuan, double the previous year, and was rated as an excellent corporate bond lead underwriter by the Shenzhen Stock Exchange. Completed 493 local government bond underwriting projects with an underwriting amount of 32.483 billion yuan, ranking fifth in the industry. The NEEQ business continued to maintain its leading position in the industry.
In addition, in 2019, Shenwan Hongyuan completed 7 recommended listing projects in the primary market of over-the-counter business and 40 private placement projects, ranking second in the primary market industry, with the cumulative number of recommended listings and the number of private placements . The number of entrepreneurs under continuous supervision ranks first in the industry, actively deploys development opportunities for deepening the reform of the New Third Board, and has abundant project reserves.
According to Shenwan Hongyuan Securities, the company will continue to practice the strategy of "focusing on customers and leading by investment behavior", emphasizing comprehensive services for the entire life cycle and all products of the company, and growing with customers; , Led by investment banking business, enhance brand influence and service capabilities of other business lines.
Draft reforms to promote development, continuous optimization of business layout
The sustainable and stable development of investment banking business is inseparable from the reform of internal systems. Since 2018, Shenwan Hongyuan Investment Bank has carried out drastic reforms in terms of mechanism, personnel and business. On the one hand, the organizational structure of industry, region and product specialization has been established;Facing the advanced international and domestic experience, it has completed the reform of the human resources mechanism, established a rank promotion system of "can go up and down, can enter and exit", and widely recruited outstanding talents externally, which greatly revitalized the talent mechanism and built a nest to attract phoenix.
In 2020, Shenwan Hongyuan is a package integration plan to launch the business lines of large investment banks. Shenwan Hongyuan Securities’ professional investment banking subsidiary, Shenwan Hongyuan Underwriting and Sponsoring Company, officially completed the management adjustment in April this year: Zhang Jian, senior executive of Shenwan Hongyuan Securities and Director of the Business Committee of the Large Investment Bank, concurrently serves as the Secretary of the Party Committee and Executive Officer of Shenwan Hongyuan Underwriting and Sponsoring Company Director, Zhu Chunming serves as Deputy Secretary of the Party Committee and General Manager of Shenwan Hongyuan Underwriting and Sponsoring Company.
Executive Director Zhang Jian, holds a Ph.D. in Finance and is one of the first sponsor representatives of the China Securities Regulatory Commission. As a post-75s youth with nearly 20 years of investment banking experience, he has officially joined Shenwan Hongyuan at the end of 2017. . Before that, Zhang Jian has been engaged in investment banking business in CITIC Securities for a long time. He has served as the co-head of the real estate finance industry group of CITIC Securities, the head of the operation department, the head of the international business group, and the head of the global M&A business line.
General Manager Zhu Chunming has worked in the People's Court, Jiangsu Securities Regulatory Bureau, Changzhou Municipal People's Government and other places successively. During his work in Changzhou Municipal People's Government, he served as a member of the party group, focusing on corporate share reform and listing, and assisting more than ten companies in Changzhou to go public. He has rich supervision experience and comprehensive abilities acquired from multiple positions.
In addition to the adjustment of senior management personnel, Shenwan Hongyuan underwriting and sponsoring company has optimized and adjusted its organizational structure and business license. In the near future, the underwriting and sponsoring company will officially transfer the business of corporate bonds (except convertible bonds) to securities companies, and will increase the recommendation business on the New Third Board.
This move is a major move for Shenwan Hongyuan Securities to expand and strengthen its investment banking business as a whole, and is carried out within the framework of the collaborative business strategy of large investment banks. On the one hand, improve the professional service capabilities of bond business varieties, strengthen the linkage between stocks and bonds under the unified operation and deployment of the Shenwan Hongyuan Investment Banking Committee, and provide customers with full product services; on the other hand, better carry out the NEEQ selection layer business , enhance the comprehensive strength of equity business, and provide customers with full life cycle services.
It is understood that in the future, Shenwan Hongyuan Investment Bank will focus on the specialization, platformization and internationalization strategy, and move towards a first-class investment banking platform with mature business, reasonable layout and domestic and foreign market influence. Relying on the background of CIC, the shareholders of Central Huijin and the whole business chain system of Shenwan Hongyuan, strengthen synergy and linkage, and build an integrated profit chain of "research + investment + investment banking"; Covering customers, closely following policy changes and market demand, vigorously deploying IPO businesses such as the Science and Technology Innovation Board and ChiNext, consolidating the leading position in the New Third Board business, maintaining the first-mover advantage of the current number of selected tier counseling reserves, and seizing refinancing opportunities , continue to deepen the building of characteristic brands of M&A business. To this end, Shenwan Hongyuan Investment Bank will further attract outstanding talents, add teams in some key industries and important regions, and strive to build an investment bank team with a scale of 1,000 people within three years.