This article**: Times Finance Author: Wu Peixuan
The end of 2023 is approaching, and it has been a challenging year for brokerage investment banks. Due to the phased tightening of IPOs and the implementation of new refinancing regulations during the year, the equity financing market was weak, and the investment banking business of various securities firms also shrank to a certain extent.
Picture worm creativity.
According to wind statistics, calculated on the basis of listing date, as of December 27, 2023, the scale of equity financing is 112 trillion, down 32 percent year-on-year98%, of which the IPO financing amount was 35525.7 billion yuan, down 3852%；The additional issuance amount is 56930.9 billion yuan, down 20 percent year-on-year44%。
The cooling of financing has also made investment bankers feel cold. An investment banker who works for a brokerage firm in East China told Times Finance that this year's business has been extremely difficult, "new projects are difficult to contract, and old projects are difficult to promote." ”
Wind data shows that as of December 27, CITIC**, Haitong**, China Securities Construction Investment**, CICC and Guotai Junan are the top five A-share IPO underwriting lists in 2023, and except for Haitong**, the underwriting amount and the number of underwritten projects of the remaining four companies have both declined compared with 2022.
IPOs and refinancing have been cold.
On August 27, the China Securities Regulatory Commission said that according to the recent market situation, the pace of IPOs will be tightened in stages to promote the dynamic balance of investment and financing.
Under the adjustment of strict supervision and marketization, the A-share IPO market will cool down significantly in 2023.
Wind data shows that the IPO financing amount for the whole year of 2022 is 58688.6 billion yuan, since 2023, as of December 27, the IPO financing amount is 35525.7 billion yuan, down 3852%, and the number of IPOs dropped to 310 from 428 in 2022.
Times Finance learned from the three major exchanges in Shanghai, Shenzhen and North that as of December 27, a total of 259 companies terminated the IPO process during the year, including 70 companies on the main board, 96 on the GEM, 55 on the Science and Technology Innovation Board, and 38 on the Beijing Stock Exchange.
In terms of sponsors, CITIC** (26), Guotai Junan (19), China Securities Construction Investment (19), Minsheng** (19), and Haitong** (18) terminated more IPO projects.
The reduction of IPO projects has greatly affected the investment banking business of securities firms. According to wind data, calculated by listing date, as of December 27, 2023, CITIC**, Haitong**, China Securities Construction Investment**, CICC, and Guotai Jun arranged the top five IPO equity underwriting lists, with an underwriting amount of 500 respectively3.3 billion yuan, 4661.5 billion yuan, 3940.2 billion yuan, 3224.5 billion and 3171.4 billion yuan, and the number of underwriters was 34, 22, 33, 17 and 22 respectively.
IPO underwriting list so far since 2023. **wind
Compared with 2022, except for Haitong**, the underwriting amount of the remaining 4 brokerages has declined to varying degrees, among which CITIC** has the largest decline, with an underwriting amount of 6670%；In terms of the number of underwriters, the number of 5 brokerages all declined, with the number of CITIC** IPOs falling from 57 in 2022 to 34, Haitong** from 31 to 22, China Securities Construction Investment** from 43 to 33, CICC from 33 to 17, and Guotai Junan from 33 to 22.
In addition, in order to better co-ordinate.
In addition to tightening the pace of IPOs in stages, the regulatory authorities have also made stricter arrangements for the refinancing rhythm and financing scale of listed companies.
Wind data shows that as of December 27, 2023, the total amount of additional issuance is 56930.9 billion yuan, a year-on-year decrease of 2044%；The total amount of the allotment is 1504.9 billion yuan, a year-on-year decrease of 7554%；The total amount of convertible bonds issued was 13835.4 billion yuan, down 4942%。
Investment banks switched to the Beijing Stock Exchange and bond underwriting.
Financing is tightening, and the investment banking business department of securities companies is facing challenges. The above-mentioned investment banker from a brokerage firm in East China told Times Finance that he had been with a project since the beginning of 2022, and the industry and enterprise quality were okay, but the materials were withdrawn this year. And a similar withdrawal, he and many of his colleagues have experienced.
It is difficult to undertake new projects, and it is difficult to promote old projects", the investment banker summed up the current industry environment.
Another person who works for a large brokerage believes that at least until the first half of next year, the tightening trend of IPOs and refinancing is relatively certain. "In the past, more attention was paid to the financing side, and the affordability of the investment side was not taken into account, but now it is necessary to balance the two ends, take into account the feelings of investors, and respond to the call of the market. ”
The brokerage source also revealed that according to his understanding, the current personnel optimization of the brokerage is relatively large, and the hardest hit area is the investment bank. "It's certain that revenue has been affected, followed by a change in the battlefield, with Shanghai and Shenzhen turning to the Beijing Stock Exchange and overseas listings. ”
Judging from the number of IPO reserves, the projects are still mainly concentrated in the top brokers, and the investment banking business of the top brokerages will also take the lead in recovering after the market environment recovers in the later period.
Wind data shows that as of December 27, 2023, after excluding the number of non-registration, termination of registration, and termination of review, among the currently ongoing initial offering projects, CITIC ** has the most sponsored projects, with 65, followed by 46 CITIC Construction Investment**, Haitong**38, Minsheng**35 and CICC 34.
Judging from the number of applicants for review in each sector, the "strong investment bank" brokerage companies have made significant efforts in the Beijing Stock Exchange, such as 16 companies on the Beijing Stock Exchange of China Securities Construction Investment and 12 companies on the Beijing Stock Exchange for Minsheng.
However, while the pace of equity financing has slowed down, bond underwriting has performed relatively well in 2023. Wind data shows that since 2023, as of December 27, the top 5 in the bond underwriting list of brokerages are CITIC ** (192 trillion), China Securities Construction Investment** (151 trillion), Huatai ** (123 trillion), CICC (115 trillion) and Guotai Junan (106 trillion), compared with the underwriting amount for the whole year of 2022, there has been a slight increase.
Since 2023, the current list of brokerage bond underwriting. **wind