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Yongmei'S Illegal Accountability Haitong Cuts Ma Su'S Corporate Bond Underwriter'S Credit Status May Be Lost

2020/12/22 12:50:00 0

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After the association of dealers launched an investigation on Yongcheng Coal and Power Holding Group Co., Ltd. (hereinafter referred to as "Yongcheng holding"), the relevant institutions under investigation have made further progress.

On the evening of December 20, Haitong Securities, which was first investigated by the dealers association due to its involvement in the Yongmei holding incident, announced that it would carry out self-examination, self correction and internal accountability on the self-discipline investigation of the dealers association. This move is considered by market participants that Haitong Securities is cutting ma Su with tears.

Haitong Securities said that in violation of the industry self-discipline rules and relevant provisions of the company, Beijing bond financing general manager Xia Kun, fixed income department general manager Li Dong, Haitong asset management deputy general manager Zhang Shijun, Haitong futures Deputy general manager Yao Hong and other relevant responsible persons, the company will give warning, notice of criticism and other sanctions, and give economic punishment.

In fact, the target of this regulatory investigation is the structured issuance of bonds. After Haitong Securities was investigated by self-discipline, industrial bank, Everbright Bank, Zhongyuan bank, China integrity international credit rating Co., Ltd., Xigema Certified Public Accountants (special general partnership) and other institutions were involved in the Yongmei holding event. They were suspected of violating the self-discipline management rules of the inter-bank bond market and were named by the dealers association.

"At present, the internal punishment of Haitong Securities is not serious. In the next step, if the regulatory agency's investigation results come out, the subsequent business evaluation will be downgraded or even the business will be suspended for several months, which will have a great impact on the institution." A bond underwriter of a large securities firm in Beijing told the 21st century economic reporter.

Starting internal accountability is just the beginning

According to the disclosure of Haitong Securities, the relevant persons in charge of the bond financing department, fixed income department and the subsidiary Haitong asset management and Haitong futures were punished.

Earlier, the association of dealers launched a self-discipline investigation on AAA rated Yongmei holdings after it suddenly defaulted on its bonds.

On November 18, the association of dealers said that according to the clues obtained from the investigation and in combination with relevant market trading information, Haitong Securities and its related subsidiaries were suspected of providing assistance to issuers in issuing bonds in violation of regulations, as well as suspected of market manipulation and other illegal behaviors, involving debt financing instruments of non-financial enterprises in the inter-bank bond market and corporate bonds in the exchange market. The association said it would conduct a self regulatory investigation into Haitong Securities and its related subsidiaries.

Haitong Securities semi annual report shows that by the end of the report period, the total management scale of Haitong asset management was 271.7 billion yuan, of which the active management scale was 186.6 billion yuan, accounting for about 68.7%. Haitong Securities pointed out that Haitong asset management company has vigorously reduced the scale of channel business in recent two years and returned to the source of active management.

As for the structured issuance of bonds, the above-mentioned institutions said, "generally, the issuer purchases part of the asset management plan, the asset management products subscribe for the bonds issued by the issuer, and then take the held bonds as collateral. The issuers can ensure the smooth issuance of bonds. At the same time, the asset management products can be used in a large scale and can earn channel fees."

This approach is not encouraged by regulators. After Yongmei holdings defaulted, many institutions were investigated by the dealers association. At the same time, the dealers association also issued the notice on issues related to further strengthening the business norms for the issuance of debt financing instruments, with special emphasis on prohibiting issuers from directly or indirectly subscribing for their own bonds and other "self financing" behaviors.

Being warned by supervision for many times

In addition to being investigated by the dealers association due to the Yongmei holding incident, Haitong Securities was launched a self-discipline investigation by the Securities Industry Association in July this year.

According to the association at that time, Haitong Securities and other securities companies had a low quotation of underwriting fees in the process of the issuance and bidding of CNFC's bonds, which caused market doubts. Self discipline investigation has been started according to relevant regulations.

In September this year, China Securities Regulatory Commission (CSRC) issued a warning letter to Haitong Securities. The CSRC pointed out that during the process of recommending China Tianying Co., Ltd. (hereinafter referred to as "China Tianying") for public offering of convertible bonds, Haitong Securities found that there was an error in calculating the proportion of the amount involved in major litigation objects in the net assets of the applicant of China Tianying and its subsidiaries, which was significantly different from the actual situation. The feedback reply sent by e-mail and submitted by CD-ROM was about the Ministry The content of the content is inconsistent, and the calculation of return on net assets of Tianying is wrong.

The underwriting scale exceeded 400 billion during the year

It is worth mentioning that, just last week, the general office of the national development and Reform Commission announced the credit evaluation results of the main underwriters and credit rating agencies of enterprise bonds in 2019, and also named and praised Haitong Securities, which scored the top 10 in five consecutive years.

According to the credit evaluation results of the main underwriters of corporate bonds in 2019, Haitong Securities has the highest score among 87 main underwriters.

In fact, bond underwriting business has always been the strength of Haitong Securities.

In terms of bond underwriting business in 2020, wind data shows that the total underwriting amount of Haitong Securities bonds has reached 478.64 billion yuan since December 20 this year, ranking sixth among securities companies. Among them, the underwriting scale of corporate bonds accounted for the largest part, accounting for 141.632 billion yuan, followed by non policy financial bonds with an underwriting scale of 129.913 billion yuan and asset-backed securities with an underwriting scale of 68.857 billion yuan.

Compared with the data in 2019, the total underwriting amount of Haitong Securities in the whole year of 2019 is 392.873 billion yuan, ranking sixth among the securities companies in the whole market. Among them, the underwriting scale of corporate bonds is still the largest, with the annual underwriting scale of 107 billion yuan; the underwriting scale of asset-backed securities is higher than that of non policy financial bonds, with the underwriting scale of 87.229 billion yuan and 79.31 billion yuan, respectively.

"In 2020, the bond market will be in a state of both supply and demand." Fan Wei, head of the fixed income financing headquarters of Shenwan Hongyuan securities, told the 21st century economic reporter, "due to the impact of the epidemic, the operating cash flow of enterprises has shrunk, which requires the expansion of financing cash flow to hedge, so as to ensure the stability of the overall financial flow. Therefore, the demand for bond financing of enterprises has increased significantly. At the same time, facing the downward pressure of global economic growth As a result, monetary policy is generally loose, which also brings sufficient capital supply. "

According to the disclosure of Haitong Securities' semi annual report this year, during the reporting period, its main underwriting credit bonds were 439, with a year-on-year increase of 44%, and the principal underwriting amount was 225.9 billion yuan, with a year-on-year growth of 26%; all the bond business rankings were in the forefront of the industry, among which the bond underwriting amount ranked the best in history, ranking the fourth in the whole industry; as a traditional advantageous business, non-financial enterprise credit bonds (including enterprises) were listed The number and amount of underwriters of debt, corporate bond and non-financial corporate debt financing instruments ranked third, and the amount of corporate bond underwriting ranked first.

 

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