The brokerage plate rose in intraday shock on the 22nd. As of press time, Guoyuan Securities rose by the daily limit, Hua an Securities rose nearly 9%, Guohai Securities, Jinlong shares, first Entrepreneurship, Pacific and so on rose more than 4%.

On the news side, on September 20, Guolian Securities and Guojin Securities both issued a suspension notice, planning a "marriage." According to the announcement, the move will be carried out in two steps: first, Guolian Securities will be transferred to about 7.82% of Guojin Securities held by Changsha Yongjin; second, Guolian Securities plans to issue A-shares to all shareholders of Guojin Securities to absorb merged Guojin Securities. The merger is expected to constitute a major asset restructuring. As acquisitions and mergers are still in the planning stage, the two brokerages plan to suspend trading from the 21st and are expected to suspend trading for no more than 10 trading days.

From the ranking of the core indicators of securities companies in 2019, Guolian Securities is in the middle level of the industry, while Guojin Securities is in the upper-middle level of the industry. According to the statistics of the China Securities Association, in 2019, the total assets of Guolian Securities was 27.259 billion yuan, ranking 59th in the industry; net assets 8.024 billion yuan, ranking 59th in the industry; operating income 1.632 billion yuan, ranking 51st in the industry; net profit 521 million yuan, ranking 43th in the industry; return on net assets 6.64%, ranking 24th in the industry. Guojin Securities has total assets of 46.918 billion yuan, ranking 33rd in the industry; net assets 20.406 billion yuan, ranking 23rd in the industry; operating income 3.988 billion yuan, ranking 21st in the industry; net profit 1.299 billion yuan, ranking 21st in the industry; return on net assets 6.47%, ranking 28th in the industry. As of September 18, 2020, the total market value of Guolian Securities is 39.4 billion yuan, and the total market value of Guojin Securities is 46.2 billion yuan. After the merger of the two brokerages, the market value will rise to nearly 90 billion. After the merger of the two brokerages, the scale of Guolian Securities will be greatly increased and become one of the forefront of the industry.

AVIC Securities pointed out that in terms of business structure, the two brokerages are highly complementary, with Guolian Securities accounting for the highest proportion of capital intermediary business, while Guojin Securities's strong business is investment banking business. After the merger, Guolian Securities investment banking business is expected to enter the top 10 of the industry; in terms of business layout, Guolian Securities Business Department is mainly concentrated in Jiangsu Province, while more than half of Guojin Securities Business Department is distributed in the central and western regions, only 3 in Jiangsu Province. On the background of shareholders, the controlling shareholder of Guolian Securities is local state-owned assets, and the controlling shareholder of Guojin Securities is "Yongjin system" of private enterprise group. on the one hand, the merged local state-owned plus private equity structure can fully mobilize all parties' resources. on the other hand, the mechanism will be more flexible and more market-oriented, on the whole, if the two are successfully integrated, it is expected to achieve the effect of one plus one greater than two.

On September 13, the central bank issued the trial measures for the Supervision and Management of Financial holding companies, strengthening the market access management of financial control companies, bringing financial control companies under the unified supervision of the central bank, and standardizing the blind expansion of non-financial enterprises and private enterprises into the financial industry. and financial control platforms are not allowed to engage in non-financial business. Under this background, the private background financial control group is expected to make a choice between finance and industry. at present, there are about 20 private background securities firms in the industry, reviewing the three waves of mergers and acquisitions in the history of the securities industry. respectively, under the regulatory requirements of separate operation, comprehensive governance, one parameter and one control, the new regulation of financial control may once again trigger a tide of industry consolidation, and the securities plate is expected to benefit from mergers and acquisitions.

Guoxin Securities said that in the context of financial supply-side reform, securities firms bear the important task of coordinating economic transformation. The merger of securities firms is in line with the guidance of classified supervision, and is conducive to the integration of resources, enhance the stability and competitiveness of the company, and will promote the healthy development of the securities industry. With the continuous progress of the reform of the capital market, the securities industry will accelerate the formation of a differentiated development pattern, and it is expected that the securities industry will achieve the coexistence of "large and comprehensive" and "small and sophisticated" securities firms in the future. It is recommended to pay attention to the leading securities firms that have advantages in capital strength, risk pricing ability and business layout, and recommend Citic Securities, Huatai Securities and Haitong Securities; in addition, it is recommended to pay attention to characteristic securities firms whose advantages are difficult to replicate. for example, Oriental Securities, Oriental Wealth.