Rich way information January 22 news, yesterday Citic Construction Investment issued a notice that the company intends to raise funds through a private placement of no more than 13 billion yuan.

Citic Construction Investment said that after deducting the issuance expenses, all the funds raised will be used to replenish the company's capital and working capital in order to expand its business scale and enhance the company's market competitiveness and risk resistance. Specifically, as shown in the following figure.

As soon as the news came out, CITIC Construction Investment A shares quickly dived at the start of trading this morning, closing down 7.62%, leading the securities sector down.

It is only half a year since CITIC Construction raised 2.069 billion net funds in A-share IPO, and this time it has increased by 13 billion, so will "Chaoyangmen Barclays" be short of money?

Before landing in A-shares, CITIC Construction Capital had raised a net capital of 6.733 billion yuan through H shares. According to the verification report produced by pwc, the purpose of fund-raising is basically the same as that promised to go public. As of December 31, 2018, 96.44% of H-share fundraising has been used.

When it came to the A-share IPO, CITIC CCIC did not promise specific uses in the prospectus, but raised 2.069 billion in the name of "replenishing the company's working capital". The pwc verification report pointed out that the funds raised had been used up.

As a matter of fact, CITIC is not the only one "short of money". Needless to say, brokerages have experienced massive layoffs and made headlines in the entertainment industry this year. "financialization of the entertainment circle, entertainment of the financial circle" is very apt to describe.

The market is in the doldrums, and the decline in performance is even more inevitable. According to the results of the IPO bid evaluation released by Shanghai Agricultural Commercial Bank some time ago, the total sponsorship fee submitted by the three brokerages was only 510000 yuan, of which one charged only 50, 000 yuan, and the underwriting rate was only 5/10000. Last year, Agricultural Bank Of China's 100 billion yuan was steadily increased, and six brokerages jointly underwrote, charging only 4.3 million yuan in underwriting fees, with an underwriting rate of about 0.4/10000. While Huaxia Bank's 29.2 billion fixed increase, 5 brokerages co-lead underwriting, sponsor and underwriting fee is only 419000 yuan, the rate is only 0.1/10000. It is simply "losing money and shouting at a loss".

A total of five brokerage stocks were listed in 2018, the largest number in recent years. Recently, Shenwan Hongyuan has also sought to become the 12th securities firm to list A + H shares. According to its prospectus, the funds raised are mainly used in capital intermediation, information technology, and principal investment, roughly in line with Citic Construction Investment.

At present, the development of the securities industry in the mainland has a trend of transition from light capital to heavy capital. Learn from Goldman Sachs Group to improve FICC business(fixed income, foreign exchange and commodities)The proportion and strength of overseas business has gradually become the route policy of the head securities firm. In addition, the Matthew effect is more obvious, the head of the strong brokerage Hengqiang, the industry may usher in a reshuffle.

After CITIC's acquisition of Guangzhou Securities, there may be a wave of mergers and acquisitions among brokerage firms. After all, it is cold, so you can keep warm by hugging a group.