A-shares continue their upward momentum, and securities firms are entering their harvest season.
Public data shows that in the first half of this year, 42 listed securities firms in A-shares achieved combined operating revenue of 251.866 billion yuan and net profit of 104.017 billion yuan, representing year-on-year increases of 11.37% and 65.08%, respectively.
The strong performance growth of securities firms is inseparable from the contribution of proprietary trading. According to the above statistical criteria, proprietary trading income of listed securities firms reached a total of 112.354 billion yuan in the first half, with an increase of over 50% and accounting for more than 40% of total revenue, becoming the main growth driver.
According to semi-annual reports, as of the end of the first half, among securities firms' heavy holdings, Bank Of Jiangsu Co.,Ltd. (600919.SH) had the largest scale involvement. Huatai Securities held 923 million shares of the company, with a shareholding ratio of 5.03%, making it the fourth-largest shareholder. Based on stock prices at the end of June, the market value of holdings exceeded 10 billion yuan. Yongan Futures Co.,Ltd. (600927.SH) and China Securities Co., Ltd. (601066.SH) are also favored by securities firms, held by Caizhi Securities and CITIC Securities with 439 million shares and 383 million shares, respectively.
From the perspective of securities firms' proprietary trading holding styles, non-banking, electronics, and biomedicine industries are most favored. In addition to stocks, securities firms' proprietary assets also include bonds, funds, and other financial products. An insider from a listed securities firm said: "Proprietary trading performance is closely related to market conditions. Generally, when market conditions are good, (securities firms' proprietary trading) stock positions will be higher."
CITIC Securities' Proprietary Trading Income Exceeds 10 Billion Yuan in First Half
Calculated by "net investment income + net fair value change income - investment income from associates and joint ventures," 42 listed securities firms achieved combined proprietary trading income of 112.354 billion yuan in the first half, an increase of 53.53% compared to the same period last year.
CITIC Securities was the only securities firm with proprietary trading income exceeding 10 billion yuan in the first half, reaching 19.052 billion yuan. The company's revenue for the period was 33.039 billion yuan, with proprietary trading contributing approximately 57%. The second and third-ranked firms in proprietary trading income were Guotai Haitong and China Galaxy, with income of 9.352 billion yuan and 7.399 billion yuan respectively in the first half. Another 5 securities firms also exceeded 5 billion yuan in proprietary trading income in the first half: Shenwan Hongyuan, CICC, Huatai Securities, Guosen Securities, and GF Securities.
Overall, 25 listed securities firms had proprietary trading income exceeding 1 billion yuan in the first half, accounting for nearly 60% of all listed securities firms.
In terms of proprietary trading income growth, a group of large and medium-sized securities firms performed outstandingly. Among them, Changjiang Securities' proprietary trading income was 1.479 billion yuan, a massive year-on-year increase of 668.35%; Guolian and Minsheng Securities and West China Securities had proprietary trading income of 2.097 billion yuan and 587 million yuan, with growth rates of 458.78% and 245.07% respectively. Additionally, Zheshang Securities' proprietary trading income also grew 146.38% year-on-year to 1.416 billion yuan.
Securities firms with proprietary trading income growth exceeding 60% in the first half also included Guotai Haitong, Orient Securities, Guojin Securities, CICC, and several others.
In contrast, some securities firms saw declining proprietary trading income. Caizhi Securities increased profits without increasing revenue in the first half, with proprietary trading income also declining. The interim report shows that in the first half, the company achieved operating revenue of 2.959 billion yuan, down 2.19% year-on-year; net profit was 1.083 billion yuan, up 16.85% year-on-year. Among these, securities proprietary trading business realized income of 242 million yuan, down 39.73% year-on-year, representing the largest revenue decline among main businesses.
Securities Firms' Heavy Holdings List Revealed
With the completion of interim report disclosures, securities firms' latest heavy holdings and shareholding changes have been revealed.
According to Wind data, from the perspective of individual stock holding scale, as of the end of June, Bank Of Jiangsu Co.,Ltd., Yongan Futures Co.,Ltd., and China Securities Co., Ltd. became the top three heavy holdings of securities firms, with holding quantities of 923 million shares, 439 million shares, and 383 million shares respectively, and market values of 11.026 billion yuan, 6.507 billion yuan, and 9.208 billion yuan respectively.
Following closely are China Petroleum & Chemical Corporation (600028.SH), Shanghai Raas Blood Products Co.,Ltd. (002252.SZ), and Harbin Gloria Pharmaceuticals Co.,Ltd. (002437.SZ), which are also heavy holding targets of securities firms. As of the end of June, Guosen Securities held 235 million shares of China Petroleum & Chemical Corporation, with a market value of 1.328 billion yuan, making it the tenth-largest shareholder; CITIC Securities held 125 million shares of Shanghai Raas Blood Products Co.,Ltd., with a market value of 858 million yuan, making it the eighth-largest shareholder; Guotai Haitong held 109 million shares of Harbin Gloria Pharmaceuticals Co.,Ltd., with a market value of 310 million yuan, making it the second-largest shareholder.
Regarding shareholding changes, in the second quarter, Guosen Securities reduced its holdings of China Petroleum & Chemical Corporation by approximately 761,000 shares, and CITIC Securities reduced its holdings of Shanghai Raas Blood Products Co.,Ltd. by 584,200 shares.
During the same period, securities firms also held large quantities of Dongwu Securities, Inner Mongolia Mengdianhuaneng Thermal Power Corporation Limited, Energy Conservation Wind Power, Hengyi Petrochemical, and other individual stocks, with holding market values all exceeding 400 million yuan.
The repositioning trends of securities firms' heavy holdings also attract significant attention. The above statistics show that in the second quarter, Sichuan Expressway Company Limited (601107.SH), Shandong Hontron Aluminum Industry Holding Company Limited (002379.SZ), Yunnan Yuntianhua Co.,Ltd. (600096.SH), and other individual stocks received substantial increases from securities firms, with single-quarter shareholding increases of 9.89 million shares, 5.7576 million shares, and 5 million shares respectively.
Among them, at the end of March, Guolian and Minsheng Securities held 6.5356 million shares of Sichuan Expressway Company Limited, becoming a new top ten shareholder of the company, ranking fifth; by the end of June, Guolian and Minsheng's shareholding increased to 16.4256 million shares, an increase of 9.89 million shares, with a growth rate as high as 151.33%. Shandong Hontron Aluminum Industry Holding Company Limited and Yunnan Yuntianhua Co.,Ltd. received increased holdings from CICC and Guotou Securities respectively in the second quarter.
Additionally, in the second quarter, Inner Mongolia Mengdianhuaneng Thermal Power Corporation Limited (600863.SH), Yizumi Holdings Co.,Ltd. (300415.SZ), Huada Automotive Technology Corp.,Ltd. (603358.SH), and others were all individual stocks that received substantial increases from securities firms, with holding quantity increases all exceeding 3 million shares.
Multiple securities firms appeared in the top ten shareholder lists of some individual stocks. As of the end of the first half, the fourth and fifth-largest shareholders of Inner Mongolia Mengdianhuaneng Thermal Power Corporation Limited were Orient Securities and Dongxing Securities respectively, holding 79.1245 million shares and 56.5498 million shares respectively. Among them, Dongxing Securities is a new top ten shareholder of the company, while Orient Securities joined the top ten shareholders in the first quarter of 2024.
Correspondingly, some individual stocks were also significantly reduced by securities firms in the second quarter. Royal Group Co.,Ltd., Shanghai Electric, and Northeast Securities were the three individual stocks with the most reduced holdings.
Some Risk Stocks Suffered Significant Reductions
Some individual stocks that encountered regulatory penalties saw securities firm shareholders cutting positions and exiting.
Public disclosures show that at the end of the first quarter, Orient Securities held 41.0292 million shares of Royal Group Co.,Ltd. (002329.SZ). By the end of June, the shareholding quantity was only 27.0292 million shares, a reduction of 14 million shares, a decline of over 34%, making it the company's second-largest shareholder.
Royal Group Co.,Ltd. had previously been favored by securities firms. From 2022 to now, Lianchuang Securities, Galaxy Securities, and Orient Securities have successively appeared in the company's top ten shareholder list. During peak periods, securities firms once occupied 4 seats among the top ten shareholders, including leading firms like CITIC Securities.
Disclosures show that in the second quarter of 2021, Lianchuang Securities became a new top ten shareholder of Royal Group Co.,Ltd., ranking third. By the end of June that year, it held 33.4998 million shares, with a shareholding ratio of 4%. In the third quarter of 2022, CITIC Securities and GF Securities also entered the company's top ten shareholder list, holding 4.004 million shares and 3.524 million shares respectively, with shareholding ratios of 0.48% and 0.42%, ranking as the seventh and eighth-largest shareholders.
However, in the fourth quarter of 2022, CITIC Securities and GF Securities exited the company's top ten shareholder list. Starting from the third quarter of 2023, Lianchuang Securities also gradually reduced its holdings and exited the company's top ten shareholders in the second quarter of last year.
At the end of March this year, Royal Group Co.,Ltd. was investigated by the CSRC for suspected information disclosure violations. In mid-June, it received another penalty from the securities regulatory bureau. Ultimately, the company and 5 related responsible persons were fined a total of 10.5 million yuan.
According to the author's analysis, individual stocks that suffered significant reductions from securities firms in the second quarter also included Xinyu Iron&Steel Co.,Ltd. (600782.SH), Infotmic Co.,Ltd. (000670.SZ), Pingdingshan Tiaan Coal.Mining Co.,Ltd. (601666.SH), and others, with securities firm holdings all decreasing by more than 2 million shares in a single quarter.
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