CITIC Securities is the largest securities company in China, with businesses covering investment banking, brokerage, securities trading and asset management.
Year in review
In 2016, both revenue and profit of CITIC Securities maintained the first in the industry in mainland China, and all its other businesses outperformed those of most of its competitors. Affected by the general market environment in 2016, CITIC Securities recorded a decrease in operating results in 2016 as compared to the corresponding period in 2015. In particular, its operating income and net profit attributable to shareholders of the parent decreased by 31.3% and 47.7% over 2015 respectively.
CITIC Securities’ equity financing business continued to post significant growth in 2016, cementing the firm’s leadership over the A-share market. As the lead underwriter on transactions with an aggregate value of RMB240.8 billion, the business closed the year with a market share of 12%.
The company’s debt and structured financing business, also the market leader in China, completed 320 projects with an aggregate value of RMB379.7 billion, in lead underwriting bonds, medium term notes, commercial papers and asset-backed securities, representing a market share of 2.6%, ranking second in the industry.
CITIC Securities completed material assets restructuring of A-share companies with an aggregate value of RMB119.7 billion, ranking first in the industry. In mergers and acquisitions, CITIC Securities was number two among Chinese securities firms for merger and acquisition transactions participated by Chinese companies.
CITIC Securities lead sponsored a total of 174 enterprises for listing on China’s over-the-counter market, the National Equities Exchange and Quotation exchange, with an aggregate amount raised of approximately RMB14.1 billion, ranking first in the market.
Globally, CITIC Securities International and CLSA Limited also completed 11 IPOs, 13 re-financing projects, 16 debt financing projects and 13 financial advising projects.
In 2016, CITIC Securities’ brokerage business maintained its market-leading position with improvement in its key market indicators. Its market share in terms of net income from brokerage fee was 5.3%, an increase of 4% as compared to 2015, jumping three spots to number two in the market ranking. The trading turnover of equities and funds handled by CITIC Securities was RMB14.9 trillion with a market share of 5.7%, maintaining the second highest in the industry.
The asset management business continued to grow strongly in 2016: total AUM amounted to RMB1.8 trillion at the end of the year. Among securities firms in China, CITIC Securities’ asset management business maintained the first ranking in terms of total AUM.
CITIC Securities is also the largest shareholder of China AMC, a leading asset management company with RMB1 trillion under management as at the end of 2016, an increase of 16% over the previous year.
CITIC Securities’ trading business includes both flow-based business and proprietary trading.
For flow-based business, CITIC Securities provides its clients financial services such as equity flow-based business, fixed income, commodities and prime services. The balance of the margin financing and securities lending reached RMB62.7 billion, with a market share of 6.67%, making it the top in the market.
The company makes both proprietary trading and alternative investment. The Company strengthened its risk management protocols in 2016 by taking risk-to-revenue ratio as a mandatory criterion in investment decisions.