Zhejiang Business Fund, Jingshun Great Wall And Other Securities Companies Have Doubled The Net Profit Of Funds, And Public Offering Has Become The Best Track In The Era Of Wealth Management

      With the rapid development of wealth management market in recent two years, the number, income and net profit growth rate of mutual funds controlled by securities companies have generally increased. These public fund companies are becoming the new starting point of securities companies' performance.

      In the 2021 semi annual report of the 12 listed securities companies disclosed, many securities companies such as Huaxia Fund, Jingshun Great Wall Fund, Penghua Fund, Zheshang fund and so on, gave good answers.

Among many fund companies, Huaxia Fund is the most attractive. In the first half of 2021, the revenue of Huaxia Fund controlled by CITIC Securities reached 3.651 billion yuan, with a net profit of 1.049 billion yuan. At present, in the disclosed companies, the revenue and net profit rank first, and it is also the only fund company with net profit of more than 1 billion yuan.

According to industry insiders, under the new asset management regulations, securities companies are seizing the opportunity to make efforts in the public offering track. Some securities companies have increased their control over their fund companies, and many securities companies have sought public offering licenses.

Half year net profit growth of Penghua and China Merchants exceeded 60%

On the evening of August 23, Guoxin Securities released the semi annual report, which is also the first financial report after the new chairman Zhang Nasha took office.

The financial report disclosed the half year performance of Penghua Fund, which owns 50% of Guoxin Securities.

According to the data, as of the end of the report period, the asset management scale of Penghua Fund was 901.2 billion yuan, of which, the asset management scale of non monetary public funds was 340.5 billion yuan, with a year-on-year increase of 108.8 billion yuan or 46.96%.

In terms of performance, the total operating income of Penghua Fund was 2.241 billion yuan, and the net profit was 614 million yuan, both of which had a year-on-year growth of more than 60%.

It is worth noting that the net profit of the fund company in the first half of this year has exceeded that of last year, and the net profit of last year was 589 million yuan.

The investment promotion fund, which holds 45% of the shares of China Merchants Securities, also saw a substantial increase in net profit.

In the first half of the year, China Merchants Fund achieved a net profit of 784 million yuan, an increase of 75% over the same period last year of 448 million yuan. By the end of June 2021, the overall asset management scale of China Merchants Fund exceeded trillion yuan for the first time, with a year-on-year increase of 255.217 billion yuan, of which the contribution of China Securities liquor index fund exceeded 50 billion yuan.

According to the semi annual report, China Merchants Fund has officially joined the UN responsible investment principles organization in 2019. During the reporting period, there were 2 green finance related products in China Merchants Fund, including the established China Merchants CCTV finance and economics 50 Index Fund and the issued China Merchants Shanghai Shenzhen 300esg benchmark ETF, with the survival scale of relevant products of 638 million yuan.

In addition, the net profit of Wanjia fund of Zhongtai securities and Great Wall Fund of Great Wall Securities increased by more than 50% in the first half of 2021.

Several funds doubled net profit

The growth rate of Zheshang fund is the fastest, with a net profit of 8.9181 million yuan in the first half of 2021. From 2018 to 2020, the company's performance loss shrank year by year, and now it has finally turned a loss into a profit, with a year-on-year increase of 4760%.

In terms of revenue, Jingshun Great Wall achieved an operating income of 2.127 billion yuan in the first half of the year, second only to Huaxia Fund. The net profit of Jingshun Great Wall in 2020 is only 822 million yuan, but in the first half of 2021, the net profit has reached 720 million yuan, far higher than the same period last year. Together with Great Wall Fund, it contributed about 390 million yuan in investment income, accounting for about 46.8% of the net profit returned to parent company in the first half of the year. Great Wall Securities affirmed the positive contribution of this achievement to the performance of the parent company in the semi annual report.

Also eye-catching are Soochow Fund, Guohai Franklin, Oriental fund, net profit in the first half of the year is more than double the same period.

According to the semi annual report of Soochow securities, Soochow Fund, following the development path of "breaking through the encirclement of rights and interests and building a solid foundation of fixed income", focused on high-quality strategic cooperative customers, made intensive efforts to consolidate the foundation of active management, with a net profit of 14 million yuan, an increase of 151.14% year-on-year.

In the first half of the year, Guohai Franklin managed 68.452 billion yuan of public funds, up 127.22% year on year. The revenue of public fund management business was 354 million yuan, up 141.16% year on year, and the net profit was 134 million yuan, with a year-on-year increase of 119.67%. And in the parent company Guohai Securities in the middle of the brilliant, in the past five years fixed income funds ranked second in the industry.

According to the report, Guohai Franklin's outstanding performance comes from actively grasping the great development opportunities of the fund market, vigorously promoting new product development, channel expansion and improvement of investment and research ability, giving full play to the advantages of medium and long-term investment and Hong Kong stock investment, and maintaining a sustained and stable investment income and business performance.

In the first half of the year, the revenue of Dongfang fund reached 299 million yuan, with a net profit of 47 million yuan, a year-on-year increase of 123.08%. By seizing the structural investment opportunities in the A-share market, the yield of equity products ranked first in the industry. However, due to the fluctuation of bond market and credit events, the yield ranking of fixed income products declined.

Two ways to improve "base content"

Tianfeng Securities said that it was optimistic about the development of Securities Dealers' large wealth management business, while securities companies deeply involved in the industrial chain of public funds had significant advantages. In addition, on May 25, the Shanghai municipal government issued a document supporting the listing of qualified fund management and other asset management institutions. If the subsequent public offering funds are successfully listed, it will have an effect on the valuation of the securities companies holding or participating in the head public offering funds.

This year, Guotai Junan transferred 8% equity of Hua'an fund held by Shanghai Jinjiang International. After the completion of the share transfer, Guotai Junan held 28% equity of Hua'an fund, becoming a major shareholder of Hua'an fund.

CSCI securities transferred 20% equity of CSCI fund held by Jiangsu Guangchuan Broadcasting Media Co., Ltd. After the completion of the equity transfer, the shareholding ratio of CSCI securities in the fund increased from 55% to 75%.

Some securities companies have increased their control over fund companies, while others have accelerated their efforts to seek public offering licenses.

Recently, CICC and Shenwan Hongyuan have submitted application materials for securities companies' asset management.

Previously, CICC said that in order to further grasp the asset management business opportunities and build a leading asset management platform, CICC plans to set up a wholly-owned subsidiary, CICC Asset Management Co., Ltd., with a registered capital of no more than 1.5 billion yuan (including), and apply for a public offering license.

A person from a securities firm in Shenzhen said that the wealth management and asset management of residents are in the period of structural adjustment. The establishment of asset management companies and the pursuit of public offering licenses have become the unanimous choice of all securities companies.

Guangfa non bank financial research team believes that public funds are the best track in the era of wealth management, with broad development space and increasingly fierce competition in the blue ocean market. Excellent public offering fund management companies have their own accumulated endowment and strong moat, with excellent profitability, strong performance stability and heavy snow. If the public offering fund companies are to be listed later, the securities companies holding the excellent fund companies are expected to usher in the opportunity of performance revaluation.