**Times reporter Liu Yiwen.
Recently, the China Securities Regulatory Commission (CSRC) issued the Provisions on Strengthening the Administration of Public Offering of Investment Transactions (Consultation Draft) (hereinafter referred to as the "Opinion Draft"). Among them, the upper limit of the distribution ratio of a single brokerage company for public offering transaction commissions was reduced from 30% to 15%, which attracted market attention.
Brokerages believe that this reduction makes the distribution of commissions more diversified, which is expected to enrich market participants, prompt brokerages to provide more high-quality research services, and small and medium-sized brokerages may usher in relative development opportunities. Given that the bonds** can be exempted from the above restrictions, they are expected to become a breakthrough point for large brokerages subject to the allocation ratio to achieve the growth of trading commissions. On the issue of whether there is a transfer of benefits in this model, some securities companies believe that the new regulations pay great attention to fairness and transparency.
Small and medium-sized brokerages have benefited relatively.
Draft Opinion lowers the upper limit of the proportion of transaction commission distribution. For managers with a management scale of less than 1 billion yuan, the upper limit of the commission distribution ratio will be maintained at 30%;For managers with a management scale of more than 1 billion yuan, the upper limit of the commission distribution ratio will be reduced from 30% to 15%.
What impact will this adjustment have on brokers?You Chunye, an analyst at Minmetals, believes that it is now a common phenomenon that the ** subsidiaries of brokerages usually contribute 30% of the commission to the parent company. According to the "Draft Opinions", the commissions of subsidiaries obtained by the parent company of * brokerages will be halved, and the income obtained by large sell-side institutions in a single ** will also be limited, which is theoretically good for small brokers. However, even if it is a cap of 15%, it is difficult to benefit many brokers, and it is still difficult for small brokerages to obtain commissions.
This move is expected to promote the reasonable distribution of trading commissions by ** managers and increase the development opportunities of small and medium-sized brokerages. However, for brokerages that are relatively dependent on the division of positions by ** subsidiaries, the reduction of the upper limit of the commission distribution ratio may lead to a large decline in the commission income of the subdivision. Hu Xiang, a non-bank analyst at Soochow, believes.
In the view of Tao Shengyu, a non-bank analyst at the East China Sea, the adjustment is the first reduction after the establishment of the trading seat system in 2007, which has an impact on the direct distribution of some large brokerage holding subsidiaries, but the diversification of commission distribution is expected to enrich market participants and prompt brokerages to provide better research services, thereby promoting healthy competition in the industry.
Will the bond settlement become a benefit delivery channel?
While reducing the proportion of commission distribution, the Draft also opens an opening, that is, the proportion of commission distribution restrictions is not applicable to the above-mentioned restrictions on the proportion of commission distribution in the management of the manager.
It is reported that the company's participation in the transaction is divided into two modes: the brokerage transaction mode (corresponding to the bond settlement model) and the rental trading unit mode. Bonds** are not subject to the upper limit of the trading commission allocation ratio. The pilot project began in 2017 and became regular in 2019, with rapid growth in scale. According to wind data, as of the end of November 2023, the number of bonds** has reached more than 900, and the corresponding asset scale is about 700 billion yuan.
Liang Fengjie, an analyst at Zheshang**, believes that in the case of the upper limit of the distribution of sub-position commissions being lowered to 15%, the advantages of exempting the upper limit of the bond settlement model will be more prominent, making up for the loss of part of the commission reduction of brokerage shareholders. Tao Shengyu holds a similar view, he believes that the Draft Opinion gives the brokerage settlement model an exemption from the upper limit of the allocation ratio, which is expected to become a breakthrough point for large brokerages subject to the restriction of the allocation ratio to achieve the growth of trading commissions.
However, there are also interpretations in the market that the bond settlement model will become a new means for brokerages to adjust commissions and exchange improper interests with ** companies. In this regard, Ran Yun, chairman of the board of directors of the National Finance Group, publicly stated that the "Opinion Draft" focuses on the fairness and transparency of the commission distribution of all public ** products, including bond settlement products. For example, Article 7 of the new regulations, therefore, the use of bond products to carry out benefit transfer will be subject to strict monitoring and review by the regulatory authorities and the company, and in the current strict supervision of "long teeth and thorns", anyone will have to pay a heavy price for illegal acts.
He also said that the Draft Opinion clarifies a comprehensive information disclosure and public supervision mechanism, and the disclosure details include both securities settlement products and leased trading unit products. Anyone who wants to use the bond settlement product to carry out illegal interest exchange will be subject to the supervision of the regulator, the custodian and the public on the basis of strict information disclosure.
Questions involving asset management subsidiaries of securities firms.
There is still a question in the market about the adjustment of the proportion of trading commission distribution. According to CITIC**, the current commission concentration of asset management subsidiaries of securities companies is significantly higher than the market average, and it should be clarified whether the latest concentration requirements are applicable to asset management subsidiaries that have obtained public offering licenses.
It is reported that in the past year, the application and establishment of asset management subsidiaries of securities companies have been significantly accelerated. At present, the number of approved asset management subsidiaries of securities companies has reached 29, in addition, the asset management subsidiaries of securities companies such as China Securities Construction Investment**, CICC, and Huachuang** are also queuing up to apply for establishment. After the establishment of asset management subsidiaries, a number of securities companies plan to further obtain public offering licenses.
In May 2022, the China Securities Regulatory Commission (CSRC) issued the Measures for the Supervision and Administration of Public Offering of **Investment** Managers, which relaxed the restrictions on the establishment of ** companies by securities firms.
Since the beginning of this year, securities companies have been very active in the layout of public offering business or asset management business, one of the important reasons is that the commission contribution to the parent company has achieved immediate results. Some industry insiders said.