Recently, the China Securities Regulatory Commission announced the IPO prospectus of Galaxy Securities, and an additional IPO queue broker. According to the official information released by the China Securities Regulatory Commission, there are currently 11 queuing brokers. The top ten brokers in the asset scale are the only ones. Brokers who have not landed in A shares.

According to the prospectus of Galaxy Securities, the number of shares issued this time does not exceed 1.693 billion shares, and does not exceed 15.08% of the total share capital after the issuance. The funds raised will be used to increase the company's capital after deducting the issuance expenses. Working capital. In fact, half of the brokerage net capital has experienced a large decline this year, but Galaxy Securities has the largest net capital decline in the entire brokerage industry.

In addition, Galaxy Securities also experienced a wave of executive changes before the A-share prospectus was submitted. The former chairman Chen Youan resigned in April this year, and former vice president Zhu Yongqiang (supervisor brokerage business) resigned in September this year. In addition, Huo Xiaoyu, the former vice president of Galaxy Securities, was also dismissed in July this year because he was unable to perform his job duties due to investigations with the judicial authorities. On October 18, Galaxy Securities issued a notice saying that Chen Gongyi, president of China Securities Industry Association, served as the new chairman of Galaxy Securities.

In this regard, Shanghai Tianming Law Firm Song Yixin said that due to changes in the company's executives, the original prospectus needs to be revised before submitting, which means that the prospectus needs to be re-examined, therefore, the company's time to market will Affected, but the listing itself is not affected.

Does the decline in the net capital of Galaxy Securities affect the business? What impact will executives leave on the company's listing? Beijing time reporters contacted Galaxy Securities several times and left the problem to the company's staff. A staff member of the company said that there will be a staff member of the company's secretarial office to contact the Beijing time reporter, but as of the time of the Beijing time, the reporter has not received an interview reply. Company staff contact.

Net capital fell sharply

Operating funds are in a hurry

As an old brokerage, Galaxy Securities did not develop smoothly. In the first half of the year, Galaxy Securities' net profit ranking slipped to the ninth place, and its net capital dropped from 60.638 billion yuan at the end of 2015 to 46.31 billion yuan at the end of June this year, a decrease of 14.328 billion yuan.

For the sharp decline in net capital, Galaxy Securities also gave an explanation in the 2016 semi-annual report. According to the semi-annual report, as of the end of the reporting period, the net capital of Galaxy Securities' net capital was RMB 46.434 billion, a decrease of 23.42% from the bottom of 2015, mainly because the company's net assets decreased due to the distribution of the 2015 final dividend, and the company's subordinated debts continued. Factors such as the period led to a decrease in the ending balance of net capital.

To supplement working capital, on May 30, 2016, Galaxy Securities announced the issuance of a total of 5.5 billion yuan of corporate bonds, which will be used to supplement the company's working capital. The bond term is three years and five years, and the issuance scale is 3 billion yuan and 2.5 billion yuan respectively. It has been issued.

Although the issuance of corporate bonds can solve the problem of tight operating funds of Galaxy Securities, it cannot compensate for the impact of the company's net capital decline.

On October 1 this year, the “Measures for the Administration of Risk Control Indicators of Securities Companies” was implemented. The measures removed the subordinated bonds from the core capital category of the securities company, and the distribution of the net capital was also changed simultaneously. Only retained earnings and equity financing can be counted. Core net capital. Insufficient net capital scale has also become a short-board for the development of many brokerages. The means of private placement, re-financing of share allotment, and queuing of A-share IPOs are all known as the main financing channels for brokers to expand their capital strength.

For the subordinated debt will no longer be included in the core net capital requirements of the brokerage firm, Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, told the Beijing time reporter that the subordinated debt itself is the source of risk, and the subprime debt crisis is even more terrible. Systemic risk, if the brokerage relies solely on subordinated debt expansion to obtain capital, this behavior is very dangerous. At the same time, this indicates that the regulatory authorities have stricter and higher requirements for securities companies’ capital supervision, and the phenomenon that brokers spam the subordinated debts will Effective containment and control, which will help improve the capital security and credit solvency of brokers. Super wear-resistant copper alloy

Net capital has a significant impact on the scale expansion of brokerage firms. In this regard, Yingda Securities chief economist Li Dazhao told Beijing time reporters that brokers are more eager for net capital. After all, the scale of securities business is proportional to net capital, and the regulatory layer emphasizes the role of net capital. In other words, the original business model was not affected much, but it made the brokerage fund allocation more reasonable, and it also promoted the brokerage business to be more stable and risk control more strict.

As a veteran big broker, Galaxy Securities is unwilling to be constrained by net capital constraints and has been planning an A-share IPO. As early as 2013, Galaxy Securities planned to adopt the A+H share listing method at the same time. However, due to the stagnation of the A-share IPO, it was forced to abandon the A+H listing plan and switch to the H-share strategy.

In the second year of listing in Hong Kong, Galaxy Securities began to prepare for the return journey in 2014. It officially submitted its A-share IPO application to the China Securities Regulatory Commission around October 2014. On August 22 last year, the CSRC officially accepted A. Share issuance application. But the strange thing is that while preparing for the listing work for many years, Galaxy Securities was suspended for review. The reason for the disclosure of Galaxy Securities is that “the application procedures are not complete, which may result in the review process cannot continue”.

According to media reports, in the team that intends to apply for IPO, Galaxy Securities is currently ranked higher. The order of IPO queuing on the Shanghai Stock Exchange has moved to 67. According to the current IPO approval and issuance speed, its IPO application is expected. It will be reviewed in the second half of 2016.

Chen Gongyi, new chairman

The listing process may be delayed

Although the report said that Galaxy Securities IPO queues move forward, but because of the recent changes in the number of executive positions, the listing time of Galaxy Securities may have to be delayed, and it will be able to successfully land in the A-share market after three years.

Since the beginning of this year, the senior executives of Galaxy Securities have experienced relatively frequent personnel changes. As of the end of September 2016, including Zhu Yongqiang, Galaxy Securities has left three people. The other two are former chairman and executive director of Galaxy Securities, Chen You'an, Galaxy. Huo Xiaoyu, former vice president of securities, and the two vice presidents are members of the company's executive committee.

During his seven years as chairman and executive director of Galaxy Securities, Chen You'an was regarded by the outside world as “management chaos, internal factions, difficult to promote reform” and “big but not strong” Galaxy Securities successfully supported Hong Kong H shares in 2015. During the stock market crash, Chen Youan also led Galaxy Securities to participate in the rescue of the market, and applied to the securities company for a 100 billion yuan credit line for self-operated shareholding.

According to the latest announcement, the chairman of Galaxy Securities is currently chaired by Chen Gongyan, president of the China Securities Industry Association.

According to public information, Chen Gongyan, 54 years old, was born in the Securities Regulatory Commission and has a profound background in the securities industry. He has served as the head of the information center of the China Securities Regulatory Commission, the assistant inspector of the Policy Research Office of the China Securities Regulatory Commission, the deputy director of the institutional supervision department, and the risk of securities companies. Director of the Disposal Office (and deputy director of the Institutional Supervision Department), Party Secretary and Chairman of the China Securities Investor Protection Fund Co., Ltd., Secretary of the Party Committee and President of the China Securities Industry Association.

In addition, public information shows that Zhu Yongqiang, the vice president of Galaxy Securities' brokerage business, resigned in September this year. The person who succeeds Zhu Yongqiang in charge of the Galaxy Securities brokerage business is already in place. He is the former deputy general manager of Shenwan Hongyuan Securities, Li Xianglin, and is in charge of the brokerage business department. Investment Advisory Department, Margin and Financing Department, and Derivatives Department.

Another vice president of Galaxy Securities, Huo Xiaoyu, was dismissed by Galaxy Securities. The reason for dismissal was based on the announcement issued by Galaxy Securities: Huo Xiaoyu was required to cooperate with the judicial organs for personal reasons. In view of Huo Xiaoyu’s failure to perform his duties normally, the company no longer hired him as the company’s executive committee. Member and Vice President. Huo Xiaoyu was the wife of Wang Baoan, the former director of the National Bureau of Statistics, who was “falling off” earlier this year. The media reported that he was in charge of the financing and securities lending business of Galaxy Securities. However, whoever took over the previous business, Galaxy Securities has not yet issued an announcement.

According to Article 12 of Chapter 2 of the Measures for the Administration of Initial Public Offerings and Listings, “the issuer’s main business and directors and senior management personnel have not undergone major changes in the past three years, and the actual controller has not changed.” One of the main conditions for an IPO company to comply with.

In this regard, Shanghai Tianming Law Firm Song Yixin said that due to changes in the company's executives, the original prospectus needs to be revised before submitting, which means that the prospectus needs to be re-examined, therefore, the company's time to market will Affected, but the listing itself is not affected.