China Securities Industry Report, 2009-2010
The end of June 2010 saw a total of 106 securities companies and 160, 000 employees in Chinese securities industry. In regard to regional distribution, Beijing, Shanghai and Guangdong possess the largest quantity of securities companies by 17, 14 and 23, respectively, a share of altogether 50.5%, followed by Jiangsu, Sichuan, Fujian, etc.
In 2009, the operating income of Chinese securities companies added up to RMB205.3 billion, of which the revenue from brokerage reached RMB142.9 billion, accounting for 69.6%. However, the high proportion of brokerage led to the unfavorable revenue structure of securities companies as well as the vulnerability to stock fluctuations. The bad market environment in the first half of 2010 caused a sharp drop in their earnings from brokerage and proprietary business, but the investment banking service was exclusively highlighted.
Against the vigorous development of Chinese securities industry, foreign investment banks successively enter the Chinese market and develop their business mainly through two means: 1) to set up branches like representative offices to assist Chinese enterprises in overseas listing, financial consultancy, B-share trading, etc.; 2) to join hands with Chinese enterprises to establish securities joint ventures so as to obtain the qualifications for such businesses as securities brokerage and underwriting in Chinese securities market. Up till June 2010, there were altogether 9 foreign-funded joint stock securities companies in China.
In 2009, the operating income of Chinese securities companies added up to RMB205.3 billion, of which the revenue from brokerage reached RMB142.9 billion, accounting for 69.6%. However, the high proportion of brokerage led to the unfavorable revenue structure of securities companies as well as the vulnerability to stock fluctuations. The bad market environment in the first half of 2010 caused a sharp drop in their earnings from brokerage and proprietary business, but the investment banking service was exclusively highlighted.
Against the vigorous development of Chinese securities industry, foreign investment banks successively enter the Chinese market and develop their business mainly through two means: 1) to set up branches like representative offices to assist Chinese enterprises in overseas listing, financial consultancy, B-share trading, etc.; 2) to join hands with Chinese enterprises to establish securities joint ventures so as to obtain the qualifications for such businesses as securities brokerage and underwriting in Chinese securities market. Up till June 2010, there were altogether 9 foreign-funded joint stock securities companies in China.
1 OVERVIEW OF CHINA SECURITIES INDUSTRY
1.1 Industry Development
1.2 Evolution of Securities Companies
1.3 Regulatory Environment
1.4 Development Trends
1.4.1 Increasingly Standardized Industry Regulation
1.4.2 Diversification of Profit Model
1.4.3 Still Higher Industrial Concentration
1.4.4 Intensification of Horizontal Competition
2 TRADITIONAL BUSINESS COMPETITION IN CHINA SECURITIES MARKET
2.1 Brokerage
2.1.1 Overview
2.1.2 Competition Pattern
2.2 Investment Banking Service
2.2.1 Stock Underwriting
2.2.2 Bond Underwriting
2.3 Asset Management
2.3.1 Overview
2.3.2 Competition
2.4 Proprietary Business
3 INNOVATION BUSINESS IN CHINA SECURITIES INDUSTRY
3.1 Margin Trading and Securities Lending
3.2 Stock Index Futures
3.3 Direct Investment
4 MAJOR SECURITIES COMPANIES IN CHINA
4.1 Galaxy Securities
4.1.1 Profile
4.1.2 Operation
4.2 CITIC Securities
4.2.1 Profile
4.2.2 Operation
4.3 Haitong Securities
4.3.1 Profile
4.3.2 Operation
4.4 GF Securities
4.4.1 Profile
4.4.2 Operation
4.5 China Merchants Securities
4.5.1 Profile
4.5.2 Operation
4.6 Huatai Securities
4.6.1 Profile
4.6.2 Operation
4.7 Everbright Securities
4.7.1 Profile
4.7.2 Operation
4.8 Guotai Junan Securities
4.8.1 Profile
4.8.2 Operation
4.9 Shenyin & Wanguo Securities
4.9.1 Profile
4.9.2 Operation
4.10 China Securities
4.10.1 Profile
4.10.2 Operation
4.11 Hongyuan Securities
4.11.1 Profile
4.11.2 Operation
5 DEVELOPMENT IN CHINA OF FOREIGN-FUNDED SECURITIES COMPANIES
5.1 Overview
5.2 Policy
5.3 Business
5.3.1 Stock & Bond Underwriting
5.3.2 Brokerage
5.4 Goldman Sachs Gao Hua Securities
5.4.1 Profile
5.4.2 Operation
5.4.3 Development
5.5 UBS Securities
5.5.1 Profile
5.5.2 Operation
5.5.3 Development
5.6 Zhong De Securities
5.6.1 Profile
5.6.2 Operation
5.6.3 Development
1.1 Industry Development
1.2 Evolution of Securities Companies
1.3 Regulatory Environment
1.4 Development Trends
1.4.1 Increasingly Standardized Industry Regulation
1.4.2 Diversification of Profit Model
1.4.3 Still Higher Industrial Concentration
1.4.4 Intensification of Horizontal Competition
2 TRADITIONAL BUSINESS COMPETITION IN CHINA SECURITIES MARKET
2.1 Brokerage
2.1.1 Overview
2.1.2 Competition Pattern
2.2 Investment Banking Service
2.2.1 Stock Underwriting
2.2.2 Bond Underwriting
2.3 Asset Management
2.3.1 Overview
2.3.2 Competition
2.4 Proprietary Business
3 INNOVATION BUSINESS IN CHINA SECURITIES INDUSTRY
3.1 Margin Trading and Securities Lending
3.2 Stock Index Futures
3.3 Direct Investment
4 MAJOR SECURITIES COMPANIES IN CHINA
4.1 Galaxy Securities
4.1.1 Profile
4.1.2 Operation
4.2 CITIC Securities
4.2.1 Profile
4.2.2 Operation
4.3 Haitong Securities
4.3.1 Profile
4.3.2 Operation
4.4 GF Securities
4.4.1 Profile
4.4.2 Operation
4.5 China Merchants Securities
4.5.1 Profile
4.5.2 Operation
4.6 Huatai Securities
4.6.1 Profile
4.6.2 Operation
4.7 Everbright Securities
4.7.1 Profile
4.7.2 Operation
4.8 Guotai Junan Securities
4.8.1 Profile
4.8.2 Operation
4.9 Shenyin & Wanguo Securities
4.9.1 Profile
4.9.2 Operation
4.10 China Securities
4.10.1 Profile
4.10.2 Operation
4.11 Hongyuan Securities
4.11.1 Profile
4.11.2 Operation
5 DEVELOPMENT IN CHINA OF FOREIGN-FUNDED SECURITIES COMPANIES
5.1 Overview
5.2 Policy
5.3 Business
5.3.1 Stock & Bond Underwriting
5.3.2 Brokerage
5.4 Goldman Sachs Gao Hua Securities
5.4.1 Profile
5.4.2 Operation
5.4.3 Development
5.5 UBS Securities
5.5.1 Profile
5.5.2 Operation
5.5.3 Development
5.6 Zhong De Securities
5.6.1 Profile
5.6.2 Operation
5.6.3 Development
SELECTED CHARTS
Aggregate Market Value of Shanghai and Shenzhen A-share Market, 2005-2010
Daily Average Turnover in Value, 2009-2010
Regional Distribution of Securities Companies in China, 2010
Total Assets Ranking of Chinese Securities Companies, 2009
Operating Income Ranking of Chinese Securities Companies, 2009
Classified Rating of Chinese Listed Securities Companies, 2010
Securities Industry System
Total Transaction Amount of Stock Fund Warrants in China, 2006-2010
Quantity & Growth Rate of A-share Effective Accounts, 2003-2010
Revenue Percentage of Brokerage of Partial Securities Companies, 2009
Ranking of Stock Fund Transaction Volume of Securities Companies, 2009
Average Net Income of Vicariously Traded Securities by Sales Dept. of Securities Companies, 2009
Ranking of Stock & Bond Underwriting Share and Quantity of Securities Companies, 1H 2010
Stock Underwriting Amount and Quantity of Securities Companies, 2009
Market Share of Stock Underwriting in China, 2009
IPO Underwriting Amount and Market Share of Securities Companies, 1H 2010
Bond Underwriting Amount and Quantity of Securities Companies, 2009
Market Share of Bond Underwriting, 2009
Monthly Fund Raising of Collective Financial Products by Securities Companies, 2008-2009
Comparison of Collective Financial Product Scale of Listed Securities Companies, 1H 2010
Top 20 Securities Companies by Net Income from Asset Management Business, 2009
Proprietary Business Revenue of Listed Securities Companies, 2009
Margin Trading and Securities Lending Balance and Market Share of Shenzhen Stock Exchange, Jul.2010
Monthly Average Balance of Margin Trading and Securities Lending in Shenzhen Stock Exchange, 2009
Daily Average Trading Volume of Stock Index Futures, 1H 2010
Comparison of Commission Income Contribution from Stock Index Futures of Listed Securities Companies, 2010
Direct Investment Business of Partial Securities Companies, 2010
Operating Income of Galaxy Securities, 2005-2009
Operating Income and Proportion of Galaxy Securities (by Sector), 2009
Total Trading Volume of Stock Fund of Galaxy Securities, 2004-2009
Revenue of Galaxy Securities from Brokerage, 2007-2009
Net Income and Proportion of Stock & Bond Underwriting of Galaxy Securities, 2007-2009
Proprietary business Revenue of Galaxy Securities, 2007-2009
Operating Income and Total Profit of CITIC Securities, 2007-2009
Quantity and Operating Income of Provincial & Municipal Business Dept. of CITIC Securities, 2008-2009
Revenue Structure of CITIC Securities (by Sector), 2009
Trading Volume of Brokerage of CITIC Securities, 2008-2009
Revenue of CITIC Securities from Brokerage, 2008-2009
Times, Amount & Revenue of Underwriting of CITIC Securities, 2009
Revenue of CITIC Securities from Securities Underwriting, 2008-2009
Securities Investment Income of CITIC Securities, 2008-2009
Asset Management Business Scale of CITIC Securities, 2008-2009
Operating Income and Total Profit of Haitong Securities, 2006-2010
Quantity and Revenue of Provincial & Municipal Business Dept. of Haitong Securities, 2008-2009
Operating Income Structure of Haitong Securities (by Sector), 2007-2009
Vicariously Traded Securities Value and Market Share of Haitong Securities, 2008-2009
Earnings of Haitong Securities from Investment Banking Services, 2008-2009
Securities Investment Business Income of Haitong Securities, 2008-2009
Operating Income and Operating Profit of GF Securities, 2006-2010
Operating Income and Proportion of GF Securities (by Sector), 2010
Quantity and Revenue of Provincial & Municipal Business Dept. of GF Securities, 2009-2010
Vicariously Traded Securities of GF Securities, 2009-2010
Operating Income Proportion of Brokerage (by Sector) of GF Securities, 2009-2010
Net Income of GF Securities from Stock & Bond Underwriting, 2009-2010
Earnings of GF Securities from Investment Banking Services
Securities Investment Business Income of GF Securities, 2009-2010
Asset Management Business of GF Securities
Operating Income and Operating Profit of China Merchants Securities, 2007-2010
Operating Income and Profit of China Merchants Securities by Sector, 2009
Operating Income Structure of China Merchants Securities (by Sector), 2009
Total Trading Volume of Stock Fund of China Merchants Securities, 2004-2009
Quantity and Ranking of Securities Underwriting of China Merchants Securities, 2009-2010
Operating Income Structure of Asset Management Business (by Sector) of China Merchants Securities, 2008-2009
Operating Income and Operating Profit of Huatai Securities, 2007-2010
Quantity, Operating Income and Operating Profit of Provincial & Municipal Business Dept. of Huatai Securities, Jan.-Jun.2010
Trading Volume and Market Share of Brokerage of Huatai Securities, 2009-2010
Revenue of Huatai Securities from Investment Banking Services, 2010
Securities Investment Business Income of Huatai Securities, 2009-2010
Collective Asset Management Business Scale and Net Income of Huatai Securities, 2009-2010
Operating Income and Operating Profit of Everbright Securities, 2007-2010
Quantity and Operating Income of Provincial & Municipal Business Dept. of Everbright Securities, 2008-2009
Operating Income and Proportion of Everbright Securities (by Sector), 2009
Total Trading Volume and Market Share of Brokerage of Everbright Securities, 2008-2009
Stock & Bond Underwriting Amount and Quantity of Everbright Securities, 2006-2009
Securities Investment Business Yield of Everbright Securities, 2009
Net Value and Market Share of Collective Financial Products of Everbright Securities, 2009
Operating Income and Operating Profit of Guotai Junan Securities, 2006-2009
Operating Income Structure of Guotai Junan Securities (by Sector), 2006-2009
Total Trading Volume of Stock Fund of Guotai Junan Securities, 2004-2009
Revenue of Guotai Junan Securities from Brokerage, 2006-2009
Revenue of Guotai Junan Securities from Asset Management Business, 2006-2009
Structure of Commission Charge of Guotai Junan Securities from Asset Management Business, 2006-2009
Revenue of Guotai Junan Securities from Investment Banking Services, 2006-2009
Quantity of Stock & Bond Underwriting of Guotai Junan Securities, 2006-2009
Proprietary Business Revenue of Guotai Junan Securities, 2006-2009
Operating Income and Net Income of Shenyin & Wanguo Securities, 2006-2009
Operating Income and Proportion of Shenyin & Wanguo Securities (by Sector), 2009
Total Trading Volume of Stock Fund of Shenyin & Wanguo Securities, 2004-2009
Stock & Bond Underwriting Amount and Quantity of Shenyin & Wanguo Securities, 2007-2009
Revenue of Shenyin & Wanguo Securities from Asset Management Business, 2007-2009
Operating Income and Net Income of China Securities, 2006-2009
Operating Income Structure of China Securities (by Sector), 2008-2009
Total Trading Volume of Stock Fund of China Securities, 2004-2009
Stock & Bond Underwriting Amount and Quantity of China Securities, 2007-2009
Operating Income and Operating Profit of Proprietary Business of China Securities, 2008-2009
Operating Income and Net Income of Hongyuan Securities, 2007-2010
Operating Income Structure of Hongyuan Securities (by Sector), 2008-2009
The Vicariously Traded Securities of Hongyuan Securities, 2008-2009
Times, Amount and Revenue of Securities Underwriting of Hongyuan Securities, 2009
Securities Investment Income of Hongyuan Securities, 2008-2009
Foreign-funded Joint Stock Securities Companies in China
Business Scope of Foreign-funded Joint Stock Securities Companies
Stock & Bond Underwriting Amount and Market Share of Foreign-funded Joint Stock Securities Companies, 2009
Stock & Bond Underwriting Quantity of Foreign-funded Joint Stock Securities Companies, 2010H1
Operating Income and Net Income of Goldman Sachs Gao Hua Securities, 2006-2009
Operating Income and Proportion of Goldman Sachs Gao Hua Securities (by Sector), 2009
Stock & Bond Underwriting Amount and Market Share of Goldman Sachs Gao Hua Securities, 2009
Equity Structure of UBS Securities
Operating Income and Net Income of UBS Securities, 2007-2009
Operating Income Structure of UBS Securities (by Sector), 2009
Operating Income of UBS Securities (by Sector), 2007-2009
Amount, Quantity and Market Share of Stock & Bond Underwriting of UBS Securities, 2007-2010
Operating Income and Proportion of Zhong De Securities (by Sector), 2009
Aggregate Market Value of Shanghai and Shenzhen A-share Market, 2005-2010
Daily Average Turnover in Value, 2009-2010
Regional Distribution of Securities Companies in China, 2010
Total Assets Ranking of Chinese Securities Companies, 2009
Operating Income Ranking of Chinese Securities Companies, 2009
Classified Rating of Chinese Listed Securities Companies, 2010
Securities Industry System
Total Transaction Amount of Stock Fund Warrants in China, 2006-2010
Quantity & Growth Rate of A-share Effective Accounts, 2003-2010
Revenue Percentage of Brokerage of Partial Securities Companies, 2009
Ranking of Stock Fund Transaction Volume of Securities Companies, 2009
Average Net Income of Vicariously Traded Securities by Sales Dept. of Securities Companies, 2009
Ranking of Stock & Bond Underwriting Share and Quantity of Securities Companies, 1H 2010
Stock Underwriting Amount and Quantity of Securities Companies, 2009
Market Share of Stock Underwriting in China, 2009
IPO Underwriting Amount and Market Share of Securities Companies, 1H 2010
Bond Underwriting Amount and Quantity of Securities Companies, 2009
Market Share of Bond Underwriting, 2009
Monthly Fund Raising of Collective Financial Products by Securities Companies, 2008-2009
Comparison of Collective Financial Product Scale of Listed Securities Companies, 1H 2010
Top 20 Securities Companies by Net Income from Asset Management Business, 2009
Proprietary Business Revenue of Listed Securities Companies, 2009
Margin Trading and Securities Lending Balance and Market Share of Shenzhen Stock Exchange, Jul.2010
Monthly Average Balance of Margin Trading and Securities Lending in Shenzhen Stock Exchange, 2009
Daily Average Trading Volume of Stock Index Futures, 1H 2010
Comparison of Commission Income Contribution from Stock Index Futures of Listed Securities Companies, 2010
Direct Investment Business of Partial Securities Companies, 2010
Operating Income of Galaxy Securities, 2005-2009
Operating Income and Proportion of Galaxy Securities (by Sector), 2009
Total Trading Volume of Stock Fund of Galaxy Securities, 2004-2009
Revenue of Galaxy Securities from Brokerage, 2007-2009
Net Income and Proportion of Stock & Bond Underwriting of Galaxy Securities, 2007-2009
Proprietary business Revenue of Galaxy Securities, 2007-2009
Operating Income and Total Profit of CITIC Securities, 2007-2009
Quantity and Operating Income of Provincial & Municipal Business Dept. of CITIC Securities, 2008-2009
Revenue Structure of CITIC Securities (by Sector), 2009
Trading Volume of Brokerage of CITIC Securities, 2008-2009
Revenue of CITIC Securities from Brokerage, 2008-2009
Times, Amount & Revenue of Underwriting of CITIC Securities, 2009
Revenue of CITIC Securities from Securities Underwriting, 2008-2009
Securities Investment Income of CITIC Securities, 2008-2009
Asset Management Business Scale of CITIC Securities, 2008-2009
Operating Income and Total Profit of Haitong Securities, 2006-2010
Quantity and Revenue of Provincial & Municipal Business Dept. of Haitong Securities, 2008-2009
Operating Income Structure of Haitong Securities (by Sector), 2007-2009
Vicariously Traded Securities Value and Market Share of Haitong Securities, 2008-2009
Earnings of Haitong Securities from Investment Banking Services, 2008-2009
Securities Investment Business Income of Haitong Securities, 2008-2009
Operating Income and Operating Profit of GF Securities, 2006-2010
Operating Income and Proportion of GF Securities (by Sector), 2010
Quantity and Revenue of Provincial & Municipal Business Dept. of GF Securities, 2009-2010
Vicariously Traded Securities of GF Securities, 2009-2010
Operating Income Proportion of Brokerage (by Sector) of GF Securities, 2009-2010
Net Income of GF Securities from Stock & Bond Underwriting, 2009-2010
Earnings of GF Securities from Investment Banking Services
Securities Investment Business Income of GF Securities, 2009-2010
Asset Management Business of GF Securities
Operating Income and Operating Profit of China Merchants Securities, 2007-2010
Operating Income and Profit of China Merchants Securities by Sector, 2009
Operating Income Structure of China Merchants Securities (by Sector), 2009
Total Trading Volume of Stock Fund of China Merchants Securities, 2004-2009
Quantity and Ranking of Securities Underwriting of China Merchants Securities, 2009-2010
Operating Income Structure of Asset Management Business (by Sector) of China Merchants Securities, 2008-2009
Operating Income and Operating Profit of Huatai Securities, 2007-2010
Quantity, Operating Income and Operating Profit of Provincial & Municipal Business Dept. of Huatai Securities, Jan.-Jun.2010
Trading Volume and Market Share of Brokerage of Huatai Securities, 2009-2010
Revenue of Huatai Securities from Investment Banking Services, 2010
Securities Investment Business Income of Huatai Securities, 2009-2010
Collective Asset Management Business Scale and Net Income of Huatai Securities, 2009-2010
Operating Income and Operating Profit of Everbright Securities, 2007-2010
Quantity and Operating Income of Provincial & Municipal Business Dept. of Everbright Securities, 2008-2009
Operating Income and Proportion of Everbright Securities (by Sector), 2009
Total Trading Volume and Market Share of Brokerage of Everbright Securities, 2008-2009
Stock & Bond Underwriting Amount and Quantity of Everbright Securities, 2006-2009
Securities Investment Business Yield of Everbright Securities, 2009
Net Value and Market Share of Collective Financial Products of Everbright Securities, 2009
Operating Income and Operating Profit of Guotai Junan Securities, 2006-2009
Operating Income Structure of Guotai Junan Securities (by Sector), 2006-2009
Total Trading Volume of Stock Fund of Guotai Junan Securities, 2004-2009
Revenue of Guotai Junan Securities from Brokerage, 2006-2009
Revenue of Guotai Junan Securities from Asset Management Business, 2006-2009
Structure of Commission Charge of Guotai Junan Securities from Asset Management Business, 2006-2009
Revenue of Guotai Junan Securities from Investment Banking Services, 2006-2009
Quantity of Stock & Bond Underwriting of Guotai Junan Securities, 2006-2009
Proprietary Business Revenue of Guotai Junan Securities, 2006-2009
Operating Income and Net Income of Shenyin & Wanguo Securities, 2006-2009
Operating Income and Proportion of Shenyin & Wanguo Securities (by Sector), 2009
Total Trading Volume of Stock Fund of Shenyin & Wanguo Securities, 2004-2009
Stock & Bond Underwriting Amount and Quantity of Shenyin & Wanguo Securities, 2007-2009
Revenue of Shenyin & Wanguo Securities from Asset Management Business, 2007-2009
Operating Income and Net Income of China Securities, 2006-2009
Operating Income Structure of China Securities (by Sector), 2008-2009
Total Trading Volume of Stock Fund of China Securities, 2004-2009
Stock & Bond Underwriting Amount and Quantity of China Securities, 2007-2009
Operating Income and Operating Profit of Proprietary Business of China Securities, 2008-2009
Operating Income and Net Income of Hongyuan Securities, 2007-2010
Operating Income Structure of Hongyuan Securities (by Sector), 2008-2009
The Vicariously Traded Securities of Hongyuan Securities, 2008-2009
Times, Amount and Revenue of Securities Underwriting of Hongyuan Securities, 2009
Securities Investment Income of Hongyuan Securities, 2008-2009
Foreign-funded Joint Stock Securities Companies in China
Business Scope of Foreign-funded Joint Stock Securities Companies
Stock & Bond Underwriting Amount and Market Share of Foreign-funded Joint Stock Securities Companies, 2009
Stock & Bond Underwriting Quantity of Foreign-funded Joint Stock Securities Companies, 2010H1
Operating Income and Net Income of Goldman Sachs Gao Hua Securities, 2006-2009
Operating Income and Proportion of Goldman Sachs Gao Hua Securities (by Sector), 2009
Stock & Bond Underwriting Amount and Market Share of Goldman Sachs Gao Hua Securities, 2009
Equity Structure of UBS Securities
Operating Income and Net Income of UBS Securities, 2007-2009
Operating Income Structure of UBS Securities (by Sector), 2009
Operating Income of UBS Securities (by Sector), 2007-2009
Amount, Quantity and Market Share of Stock & Bond Underwriting of UBS Securities, 2007-2010
Operating Income and Proportion of Zhong De Securities (by Sector), 2009
