Investment banking business segment: industry-leading position in equity financing and significant growth in debt financing
During the first half of 2019, under the macro environment of comprehensive reform such as the launch of SSE STAR Market and the pilot registration-based IPO system for the issuance of shares, the Company kept up with changes in policies and continued to take advantage of its strength in its balanced and versatile investment banking business to expand the coverage of leading enterprises in major industries. The Company formed a dedicated group for the SSE STAR Market business to coordinate and actively expand the reserve of technology innovative enterprises that meet the requirement of the SSE STAR Market. During the Reporting Period, the Company continued its industry-leading position in equity financing business by completing 14 equity financing projects, for which it acted as a lead underwriter, ranking 3rd in the industry. The equity financing lead underwritten amount was RMB12.234 billion, ranking 6th in the industry. Among these projects, the Company acted as a lead underwriter for 3 IPOs, ranking 5th in the industry and the lead underwritten amount was RMB1.043 billion.
For the debt financing business, the Company continued to make firm progress in its strategic transformation, focus its strength on developing premium customers, and gradually optimize the structure of its clients and business. By continuing to enhance comprehensive risk management, the Company strengthened risk control efforts, and promoted the sustainable and steady development of debt financing business. During the Reporting Period, the Company acted as the lead underwriter for 78 tranches of bond offerings, with a total lead underwritten amount of RMB78.429 billion, representing a year-on-year increase of 178.29%.
Wealth management business segment: Going Deep in FinTech and forging competitive edges in products and systems
During the Reporting Period, under the circumstances of stricter regulatory requirements in the industry and continuous decrease in commission rate, securities and firms faced increasing competition in respect of customer acquisition, customer suitability, product structure, service model and attracting outstanding talents. Faced with fierce market, GF Securities continued to establish a customer demand-driven wealth management product system and promote business development and transformation, by taking wealth management, institutional brokerage, technological finance and integration as the four driving forces and taking the compliance risk control and system reform as its forceful support.
The Company achieved good results by continuing to go deep in its scientific and technological financial model and consistently enhancing its scientific and technological financial capability. As of the end of the Reporting Period, the number of the Company’s mobile-phone securities users exceeded 25.33 million, representing an increase of approximately 15% as compared to the end of last year. During the Reporting Period, the sales and transfer amount of products of the Yitaojin E-commerce platform amounted to RMB203.4 billion, and the Company’s trading volume of shares and fund products increased by 25.97% year-on-year to RMB6.16 trillion (bilateral statistics).
Trading and institution business segment: capture market opportunities with adherence to value investment
During the first half of year, amid the significant fluctuation in the A Share market, GF Securities adhered to the idea of value investment and focuses on blue chip stocks investments, which contributes to the yield rate of the Company’s equity and derivatives trading business exceeding that of index. Meanwhile, leveraging on its professional services and extensive industry experience, the Company obtained the approval of business qualification of lead market-maker for listed funds from SSE for the first time in March 2019.
Furthermore, the Group’s trading and institution business segment also includes fixed income sales and trading business, OTC sales and trading business, alternative investment business, investment research business and asset custody business. With close eyes on the industrial trend, the Company firmly seized the opportunities in different periods to achieve favorable development in business. For instance, the Group carried out alternative investment business with its own funds through GF Qianhe, a wholly-owned subsidiary. During the Reporting Period, GF Qianhe completed an aggregate of 12 equity investment projects with an amount of RMB616 million. And the the total asset scale of asset custody and fund service business provided by the Company as at the end of June 2019 was RMB209.463 billion, representing an increase of 12.21% as compared to the end of 2018.
Investment management business segment: well-positioned to achieve quality growth
For the investment management business segment, the Group carried out asset management business, public fund management business and private fund management business through its controlled subsidiaries and associate companies, being well positioned and obtaining a number of qualifications in China. Among all, for the asset management business, GF Asset Management, which is under the Group, steadily progressed with transformation to high-quality organic growth under the direction of new policies in relation to asset management. As of June 30, 2019, the scale of specific asset management schemes of GF Asset Management increased by 33.01% as compared with December 31, 2018 and the total asset management fee income grew to RMB752 million for the Reporting Period from RMB632 million for the same period last year.
For the public fund management service business, E Fund, of which the Company held 25% equity interest and being one of the three parallel largest shareholders, and GF Fund, a subsidiary of which the Company held 51.135% equity interest, ranked the 1st and the 8th respectively in the industry in terms of the total fund size excluding money market funds and short-term wealth management bond funds. The Group mainly engages in private fund management business through its wholly owned subsidiary GF Xinde. During the Reporting Period, GF Xinde and the funds under its management have completed various equity investment deals, with the investment amount of billions.
Mr. Sun Shuming, the Chairman of GF Securities Co., Ltd., said: “During the first half of year, we closely monitored the trends in the market and of policies, and actively to adjust our business strategies accordingly to realize balanced development of different business lines, thus remaining our leading position of major indicators in the industry. Looking forwards, we will continue to adhere to our management philosophy of ‘stable growth, continual innovations, performance driven culture and business strategies’, and give a full play to the synergies of our associate companies and subsidiaries, with an aim to realize continuous, healthy and stable development in comprehensive financial services, and maximize the return to shareholders.”
About GF Securities Co. Ltd
Established in 1991, GF Securities is one of the first, full-service investment banks in China. The Company was successfully listed on the main boards of the Shenzhen stock Exchange (Stock code: 000776.SZ), and the Hong Kong Stock Exchange (Stock code: 1776.HK), in 2010 and 2015, respectively. Relying on excellent business performance, risk management and quality services, the company achieves sustained and steady development, and is one of the most influential securities companies in China. The Company possesses industry-leading innovation capabilities and has built a diversified business portfolio serving various corporations, individuals, institutional investors, financial institutions and governments. As of December 31, 2018, the Company operates 264 brokerage branches, providing extensive national coverage to 31 provinces, cities, and autonomous regions throughout China. For four consecutive years in 2015 and 2018, GF Securities ranked in the forefront of “Hurun’s Top Brands List” amongst listed Chinese securities companies. The Company is actively committed to social responsibility and caring, focusing on education and poverty through “GF Securities Social Charity Foundation”, and as a result has enjoyed a continuously growing reputation and an influential brand.
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