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with the end of the semi-annual report, securities firms’ wealth management business has shown new changes!

according to the choice data of oriental wealth, based on the "net income from brokerage fees" in the financial statements of listed securities companies, in the first half of 2024, 43 listed securities companies achieved a total net income from brokerage fees of 45.762 billion yuan, a year-on-year decrease of 13.04%, accounting for 19.47% of the total revenue of these 43 securities companies, second only to proprietary business in the main business of securities companies.

securities times · china securities journalist noted that since the beginning of this year, brokerage and wealth management businesses of securities firms have had many highlights. for example, securities firms are accelerating their transformation to the buy-side investment advisory model. orient securities, as a representative, has adjusted its organizational structure, while other securities firms have broken through the situation where the scale of fund investment advisory has been stagnant for several consecutive quarters. in terms of account opening, securities firms including citic construction investment and guotai junan securities opened more than 500,000 new accounts in the first half of the year. in addition, small and medium-sized securities firms such as guolian securities also achieved relatively impressive customer acquisition data. in terms of international business, leading securities firms continue to deepen their overseas wealth management layout, and singapore has become an important position.

in terms of the market, the activity of the stock market declined in the first half of 2024, while the scale of public fund products hit a new high again. according to the data of the shanghai, shenzhen and north china stock exchanges, the transaction volume of stock funds in the shanghai, shenzhen and north china stock exchanges in the first half of the year was 116.00 trillion yuan, and the average daily stock fund transaction volume was 991.464 billion yuan, a year-on-year decrease of 6.28%; according to the data of the china securities association, the scale of public funds exceeded 31 trillion yuan, an increase of about 12.62% from the end of the previous year.

highlight 1: three small and medium-sized securities firms grew against the trend

in terms of the ranking of net income from brokerage fees, the top ten listed securities firms are citic securities (4.88 billion yuan), guotai junan securities (3.078 billion yuan), gf securities (2.762 billion yuan), huatai securities (2.723 billion yuan), china merchants securities (2.577 billion yuan), citic construction investment (2.517 billion yuan), china galaxy securities (2.51 billion yuan), guosen securities (2.132 billion yuan), shenwan hongyuan securities (1.892 billion yuan), and cicc (1.77 billion yuan).

judging from the revenue growth rate of brokerage business, in the first half of this year, only three companies had positive growth, namely shanxi securities (14.03%), guolian securities (6.88%), and caida securities (1.69%).

among them, many indicators of shanxi securities' wealth management business have been greatly improved, including the number of investment advisory clients covered increased by 11.02% compared with the same period last year, the product aum asset scale increased by 35.4% year-on-year; product revenue increased by 51.9% year-on-year; the scale of bond brokerage business increased by 95.3% year-on-year, etc.

in the first half of the year, guolian securities added 119,400 new customers, with a total of 1,855,800 customers, a year-on-year increase of 10.06%. it still maintains a strong customer acquisition capability in a weak market. guolian securities said that the company continues to strengthen the "general direction good doctor" professional service system, empowering the online customer acquisition service capabilities of wealth management business, and continued to expand cooperation channels in the first half of this year, promoting the integration of core channel businesses, and reaching cooperation intentions with strategic platforms such as ant, tencent, and jd.com.

at the same time, guolian securities has also increased the assessment of product holdings in terms of financial product sales, guiding the product sales concept to shift to configuration-based sales. in the first half of this year, the company's financial product sales volume decreased by 14.24% year-on-year, while the financial product holdings at the end of the period were basically the same year-on-year.

caida securities disclosed in its semi-annual report that the company had opened 91,400 new customers in the first half of this year. at the same time, caida securities has carried out a series of transformations in the development of wealth management business, including promoting customer marketing services and product system construction with professional awareness, promoting the construction of assessment incentive mechanisms, and accelerating the introduction of professional talents in financial products, digital finance, investment consultants, etc.

brokerage firms that saw a significant decline in net brokerage fee income in the first half of this year include industrial securities (-24.87%), orient securities (-28.74%), tianfeng securities (-29%), and cicc (-29.15%).

focus 2: accelerate the transition to a buy-side advisory model

in the first half of this year, securities firms continued to promote the transformation of wealth management business to the "buy-side investment advisory" model. some securities firms adjusted the organizational structure of their wealth management lines in the first half of the year, and some securities firms saw a significant increase in fund investment advisory business data.

judging from the scale of fund investment advisory contracted clients, most securities firms maintained a stable scale, while guotai junan achieved impressive growth, breaking the situation where the overall fund investment advisory scale of the securities industry had stagnated for several consecutive quarters.

data shows that the client assets of guotai junan's "junxiangtou" investment advisory business reached 16.571 billion yuan, up 30.2% from the end of last year. guotai junan said that the company deepened collaborative business development, expanded customer base management, optimized public fund investment advisory and private customized service models, and the brand influence of "junxiangtou" buy-side investment advisory continued to increase.

in the first half of this year, orient securities completed the organizational structure adjustment of its wealth management line, established a wealth management committee, and integrated and established seven first-level departments to enhance customer coordinated management and comprehensive service capabilities and build the company's comprehensive wealth management service platform.

in terms of fund investment consulting, orient securities has launched two product series, the "yue" series and the "ding" series, with a total of 20 investment portfolio strategies with a scale of approximately 14.6 billion yuan, an increase of 1.67% from the beginning of the year. it serves approximately 129,000 customers, with a customer retention rate of 64% and a repurchase rate of 77%. customer profitability is better than that of single product investment, achieving the result of "customer returns are better than portfolio performance, and portfolio performance is better than market performance."

guolian securities has built an account management system that takes fund investment consulting as the starting point and asset allocation as the core, and has established fund investment consulting, asset management plans, family trusts and other account management systems to achieve a buyer investment consulting service model for different customer categories and different needs. as of the end of june this year, the total number of fund investment consulting contracted customers was 319,400, a year-on-year increase of 13.35%, and the scale of authorized account assets was 6.958 billion yuan, basically the same as the previous year, and a total of 30 cooperative channels were launched.

cicc's statistical radius is relatively larger, and its buy-side investment advisory products include a variety of product forms including stock investment advisory and fund investment advisory products. cicc said that the scale of the company's buy-side investment advisory products, which consist of products such as "china 50", "micro 50" and "public offering 50", has stabilized at nearly 80 billion yuan. among them, the holdings of "public offering 50" exceeded 10 billion yuan. at the same time, the company continues to increase the penetration rate of innovative personal trading services such as "stock 50", "etf50" and "stock t0". the innovative personal trading services have covered more than 300,000 customers in total, and the assets of contracted customers have exceeded 300 billion yuan.

highlight 3: securities firms reveal new account openings, with citic construction investment opening over 700,000 new accounts

in the semi-annual report, some securities firms also showed the latest number of accounts opened or the latest number of customers in the first half of the year.

among them, citic construction investment performed particularly well. in the first half of this year, the company's securities brokerage business developed 735,300 new customers, a year-on-year increase of 13.23%, and the total number of customers exceeded 14 million.

guotai junan said that as of the first half of this year, the company had 18.4184 million personal accounts, up 3.2% from the end of last year. based on this rough calculation, guotai junan added 571,100 new personal accounts in the first half of the year.

in addition, as of the end of june, the number of citic securities customers reached 14.7 million, and the scale of custodial customer assets remained at 10 trillion yuan, achieving positive growth compared with the end of the previous year. the total number of wealth management customers of cicc was 7.733 million, with a total value of rmb 2.76 trillion in customer account assets. the total number of customers of china galaxy securities exceeded 16 million.

highlight 4: large securities firms actively promote international business layout

it is worth mentioning that many securities firms mentioned their overseas wealth management layout in their semi-annual reports, with singapore in particular being very popular.

for example, citic securities said that the company has orderly promoted the global layout of overseas wealth management, with hong kong, china and singapore as "dual bookkeeping centers" to build a cross-regional, cross-market, and cross-asset class wealth management and comprehensive service platform to provide more diversified, personalized and global asset allocation solutions for global high-net-worth customers and institutional investors. in the first half of 2024, the sales scale and revenue of citic securities' overseas wealth management products continued to maintain steady growth.

citic construction investment has also achieved great success in international business. in the first half of 2024, citic construction investment international's cumulative agency stock trading amount was hk$15.094 billion, a year-on-year increase of 42.83%; as of the end of the reporting period, the total market value of customer custody shares was hk$18.987 billion, a year-on-year increase of 13.86%. looking forward to the second half of the year, citic construction investment international will strive to achieve a win-win situation for customer operations and investors' long-term returns, accelerate the construction of overseas product platforms, develop and introduce high-quality products, make good use of policy opportunities such as "cross-border wealth management connect", provide customers with a variety of overseas asset allocation methods, and help customers realize the preservation and appreciation of domestic and foreign assets.