Event. The reform of public offering transaction management was officially released, and the competitive landscape of securities companies may change dramatically. On December 8, the China Securities Regulatory Commission solicited public opinions on the "Provisions on Strengthening the Management of Public Offering Investment Transactions (Consultation Draft)", the main contents of which include: First, reasonably reducing the transaction commission rate of public offeringThe second is to reduce the upper limit of the proportion of transaction commission distribution;The third is to strengthen the supervision of the distribution of commissions for public offeringsFourth, it is necessary to clarify the disclosure requirements for the annual summary expenditure of the transaction commission of the public offering **manager**.
Key takeaways. We believe that the main impact is: the research business may be significantly under pressure, taking 23H1 as an example, the overall commission rate of the public offering may drop to about 10,000, and the corresponding commission will drop by more than 40%;Managers with a management scale of more than 1 billion yuan in equity ** will adjust the upper limit of the commission distribution ratio from 30% to 15%, which may reduce the concentration of the public offering on the seller's commission distribution, and the securities firms that control and participate in the head of the public offering may be affected to a certain extent. On the whole, the reform of public offering transaction management has brought pressure on the research business of securities firms, and the competition pattern of the research business of securities companies may face great changes, and research resources and commission income may be further concentrated in securities firms with strong research strength. Zheshang ** transferred the equity of Guodu**, and the main line of mergers and acquisitions in the brokerage sector is expected to continue to be performed.
On December 9, Zheshang ** issued an announcement that it intends to transfer a total of 1915% of the equity, is expected to become the largest shareholder of the national capital, Zheshang said that this transaction is conducive to the company to optimize the allocation of resources, strengthen the integration of resources, give full play to the company's existing business advantages and the synergy of the national capital business, and enhance the company's competitiveness. At the beginning of November, the China Securities Regulatory Commission (CSRC) said that it would support the leading companies to become better and stronger through business innovation, group operation, mergers and acquisitions, etc., and build a first-class investment bank. We believe that the wave of mergers and acquisitions in the industry is expected to start again under the encouragement of regulation, and the theme of mergers and acquisitions in the brokerage sector may continue to be interpreted.
Investment strategy. It is recommended to pay attention to the high elasticity opportunities after the high historical win rate in Q4 and the market bottom reversal in the brokerage sector.
The above is only used as a teaching case, does not constitute investment advice, and is for Xi reference only.
Reference**: December 14, 2023 Yongxing** Industry Weekly: The new regulations on public offering transactions have been released, and the theme of mergers and acquisitions of securities companies continues to be interpreted.
Special Disclaimer: The content of the article is for reference only and does not constitute investment advice. Investors act accordingly at their own risk.
This article is edited by investment consultant: Shang Yaxiong a1290623030001.