China Fund News Amman
The bankruptcy restructuring of Netinfo Securities, which has been contested by many competitors, has finally been revealed.
On the evening of February 10, Compass issued an announcement that the company received a notice from the administrator that according to the voting results of the second interim creditors' meeting of the bankruptcy reorganization case of Netinfo Securities on February 10, 2022, the administrator determined that the company was an investor in the restructuring of Netinfo Securities.
I thought it was a happy news. Unexpectedly, the market voted with its feet, and in the morning of the 11th, the compass once soared by 8%, and then the stock price fell rapidly. As of press time, Compass has plummeted 3.65%.
Next Oriental Fortune?
It is understood that in July 2021, Netinfo Securities was restructured by the Shenyang Intermediate People's Court, and Netinfo Securities issued an announcement on the public recruitment and selection of reorganization investors the following month, officially opening the road to reorganization.
So far, compass, good buy wealth, Shenyang Linlong, Ruida futures four companies have participated in the selection of Netinfo Securities. During this period, after due diligence and reverse due diligence, Ruida Futures announced its abandonment at the end of 2021.
In the end, Compass stood out in the second selection on February 10 and became a restructuring investor in Netinfo Securities.
If the restructuring is successful, another Internet brokerage will be added to China's A-share market.
When it comes to Internet brokers, many people naturally think of Oriental Wealth. Some netizens said that in April 2015, Dongcai's acquisition of Tibet Tongxin triggered 11 limits, and it was expected that the compass would have 5 limits.
Brokerage analysts are also optimistic. CICC believes that if Compass eventually becomes an investor in the restructuring of Netinfo Securities, the company is expected to provide customers with one-stop integrated financial services and create a second growth curve.
Northeast Securities Research Report believes that if Compass successfully acquires Netinfo Securities, combined with the original financial data in-depth mining and technical analysis services, it is expected to develop Internet brokerage business based on the Internet platform and existing user groups, and benchmark Oriental Wealth.
As of now, the total market value of Oriental Wealth has reached more than 330 billion, while the compass is less than 20 billion. However, Compass's stock price has reacted recently.
As of Feb. 10, Compass shares were up 22.37 percent in the four trading days of the year, including a single-day gain of 11.79 percent on Feb. 8.
Tencent's Good Buy Wealth failed
In addition to compass, Haomai Wealth and Linlong Shares have also previously participated in the open recruitment and selection of investors for the bankruptcy reorganization of Netinfo Securities.
According to public information, the main body of haomai wealth operation is haomai wealth management co., ltd., and its wholly-owned subsidiary Shanghai haomai fund sales co., ltd. has a third-party fund sales license.
The legal person and founder of Haobuy Wealth is Yang Wenbin, who has worked for HSBC Jinxin Fund Management Company, Shanghai Investment Morgan Fund Management Company, Huaan Fund Management Company, etc., and participated in the design and issuance of China's first open-end fund, Huaan Innovation.
At the same time, Tencent Industrial Investment Fund, the largest shareholder of Haomai Wealth, held 25.69% of the shares, and Yang Wenbin ranked second with 17.31%. Analysts said that the core direction of Haobuy Wealth is the third-party sales of private equity funds, and self-operated FOF funds, involved in asset management. If you can get the brokerage license, the future imagination space is large.
Another "failed" Linlong co., Ltd. was mainly engaged in research and development and sales of securities and futures analysis software, financial information services, and securities investment consulting services, and landed on the New Third Board market in January 2014.
However, the small size of Linlong shares cannot meet the hard conditions of investing at least 1 billion yuan in the restructuring stage to repay the company's debts and help resolve the business risks of Netinfo Securities. Therefore, the company participated in the bankruptcy reorganization of Netinfo Securities in the form of a consortium, which includes Shenyang Linlong Technology Co., Ltd., Caizhidao Information Technology Co., Ltd., and Shenyang Hunnan District State-owned Assets Management Co., Ltd.
A broker that has been rated D for three consecutive years
The compass has mixed feelings
According to public information, Netinfo Securities was established on April 18, 1995, with a registered capital of 500 million yuan. At present, United Venture Group Co., Ltd. holds 55.61% of the equity of Netinfo Securities and is the controlling shareholder. Shenyang Shengjing Financial Holdings Investment Group Co., Ltd. and Shenyang Hengxin Leasing Co., Ltd. hold 42.29% and 2.10% of the equity of Netinfo Securities respectively.
Up to now, Netinfo Securities has obtained securities brokerage, securities self-operation, securities investment consulting, securities investment fund sales, securities asset management, securities underwriting, consignment sales of financial products, securities sponsorship, margin financing and other related business qualifications.
According to the unaudited statistics of the Securities Association of China, in the first half of 2021, Netinfo Securities achieved revenue of 23.46 million yuan and net profit loss of 26.48 million yuan, ranking last in the industry. In 2020, the operating income of Netinfo Securities was 51.6917 million yuan, the net profit was -59.7981 million yuan, and the total liabilities were 4.279 billion yuan, higher than the total assets of 703 million yuan.
In the 2018 CSRC's classification of securities companies, Netinfo Securities was rated CCC. However, in the following three years (2019 to 2021), Netinfo Securities was continuously rated D, ranking at the bottom of the industry.
Such a securities company with the lowest business ranking and continuous losses has attracted a number of listed companies to participate in the reorganization.
Industry insiders believe that the license is the most important threshold for brokerage business. A brokerage license can help the acquirer expand its business space and knock on the door of the big era of wealth management. The most successful case before this is Oriental Wealth.
In 2015, Oriental Wealth acquired the unknown local securities company Tongxin Securities, won the brokerage license, the Internet company found a user realization channel, transformed into an Internet brokerage, online account opening, relying on channels and user advantages to make the brokerage business income of the brokerage business become the main income; on the basis of the daily fund network, as a brokerage company to further enhance the ability to sell funds. Now it has also become the leading Internet brokerage among brokers.
However, some brokers said that even if they win the securities license, they will only gain "admission tickets". At present, the advantages of head brokers are becoming more and more obvious, and many small and medium-sized brokers are also seeking survival in the cracks.
On September 16, 2021, 98.24% of the equity of New Era Securities was publicly listed and sold on the Beijing Equity Exchange, with a transfer reserve price of 13.135 billion yuan. At the end of September and the beginning of October of the same year, Western Securities, Beijing Financial Holding Group Co., Ltd. (hereinafter referred to as "Beijing Financial Holdings") and Dongxing Securities and China Chengtong respectively expressed their intention to acquire the listed equity of New Era Securities. However, western securities and Dongxing securities subsequently withdrew from the acquisition. In December 2021, China Chengtong announced the acquisition of a 98.24% stake in New Era Securities.
In September 2021, China Huarong issued an announcement that the company intends to liquidate its 71.99% equity interest in Huarong Securities. In 2022, on January 27, China Huarong announced that Guoxin Capital had acquired 71.99% of the equity of Huarong Securities, and the two parties had signed a state-owned property rights transaction contract on the same day, with a transaction consideration of 10.93 billion yuan.