PaiPaipai Network Survey: How Does Bank Obtaining Securities Firm License Affect Geometry?

PaiPaipai Network Survey: How Does Bank Obtaining Securities Firm License Affect Geometry?
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Regarding the fact that banks will be granted brokerage licenses, leading brokerage executives have expressed that competition will progress. If banks obtain brokerage licenses, it will force brokerage firms to think and change, promoting their integration and growth. China Construction Bank responded that it did not receive any relevant information and did not comment on market rumors. Industrial and Commercial Bank of China stated, "Our bank is not aware of relevant information and will not comment on market rumors
But even so,6month29Bank stocks collectively opened higher in the morning trading, with individual stocks turning red20However, securities firms fell collectively, as rumors of a takeover of the securities industry appeared to be bearish on the surface and dealt a significant blow to small and medium-sized securities firms.
What are the impacts of banks obtaining securities brokerage licenses?
Zhongtai Securities pointed out in its research report that the possibility of large-scale issuance of securities brokerage licenses to banks is very small. The goal of the policy is to expand and strengthen China's capital market. The consensus formed by the policy is that this requires high-quality top securities firms, rather than the number of securities firm licenses;We need a large investment bank that can compete with foreign investment banks, rather than a pile of repetitive low-level construction of brokerage licenses. From this perspective, licensing banks and securities firms is not the focus of policy.
Regarding market rumors that China Securities Regulatory Commission (CSRC) plans to issue a securities firm license to commercial banks, funds have been voted on in the short term using stock prices, manifested as a decline in securities firm stocks and a rise in bank stocks. However, if a commercial bank obtains a securities firm license, how will it affect both the securities firm and the banking industry? The latest views on private fundraising are as follows.
Tian Tian Asset stated that in recent years, the country has opened up the access of foreign financial institutions and relaxed their business scope, and the reform of domestic financial institutions is completely foreseeable. Mixed operation of finance is a very common phenomenon in foreign countries, and in China, after the choice of separation, separation, and combination, it will eventually move towards mixed operation to adapt to the competitive situation of the global financial industry.
Although participating in securities brokerage business is beneficial for banks to expand their business scope, considering the high profit base of banks, the proportion of increase is extremely limited and the profit margin is limited. For securities firms, especially those without a banking background, they face increased competitive pressure in the short term, with a slightly bearish impact.
Binnuo Asset pointed out that the purpose of the China Securities Regulatory Commission's plan to issue brokerage licenses to commercial banks is still to expand financial openness and increase the proportion of direct financing. This is also to refer to the experience of mixed operation of leading foreign financial service groups, improve regulatory efficiency, and implement the measures of the National People's Congress on capital market reform.
For banks, opening up new investment and financing channels has improved the efficiency of fund utilization, which can be seen as beneficial in the growth period;For securities firms, the addition of new competitors further erodes the market and intensifies competition. Leading securities firms leverage their existing resource advantages to further expand their market share. Some small and medium-sized securities firms may become targets for commercial banks to make new acquisitions, triggering a wave of reshuffle in the securities industry.
Fengque Investment believes that the short-term impact of market rumors about issuing brokerage licenses to banks is limited. Although it appears to be negative for securities firms and positive for banks, in the long run, it is positive for both securities firms and banks. We believe that issuing brokerage licenses to banks also means issuing banking licenses to securities firms, and mixed operation is a market development trend.
Specifically, internally, mixed operation is an objective requirement for banks and securities firms to meet customers' diversified financial needs and enhance their comprehensive competitiveness;Externally, China133The size of a securities firm is equivalent to that of a Goldman Sachs, and with China's opening up to the outside world and increasing international status, it is urgent to build an internationally competitive investment bank. And enhancing the activity of the capital market and the proportion of direct financing is an important way for China's economic restructuring and supporting technological innovation. The mixed operation of banks and securities firms not only enhances the comprehensive competitiveness of the two major market participants, but also actively promotes the development of China's capital market and direct financing