Hualong Securities expansion executive team IPO is expected to speed up?

2022-05-05 0 By

Reporter Luo Ji Beijing reported recently, Hualong Securities issued at the end of 2021 professional manager recruitment has ended registration.This time, Hualong Securities intends to hire 2 deputy general managers, a secretary of the board of directors, a chief information officer.In fact, Hualong Securities has been preparing for IPO in 2017 after submitting the filing materials of IPO and listing guidance and being accepted. It intended to complete the filing in 2021, but was not able to do so due to the impact of “Blue Mountain Technology case”.As the punishment related to the “Blue Mountain Technology Case” will be implemented at the end of 2021, the market believes that the adverse impact of IPO is expected to be eliminated. At this time, the active replenishment of the senior management team will pave the way for further development in the future.In this regard, China Business News reporters contacted Hualong Securities, but did not receive a response as of press time.Market-oriented recruitment four executives as well as many local brokerages, hualong securities is the earliest “letter card separation” wave before and after 2001, by the gansu provincial and administer the municipal part of the trust company of the securities business and the securities assets reorganization merger and birth, and from 2004 to 2006 of the securities company “overhaul” of the restructuring again.As a decade ago share reform will be left over from history involving state-owned assets in problem solving, and thereafter to complete the new three board listing and delisting, eventually hualong securities formed the actual control of man-made gansu province people’s government, has 130 shareholders, but no controlling shareholder equity structure, but also from local brokerage, gradually developed into a comprehensive national brokerage licence.From the perspective of development, this is a typical process of the continuous promotion of the marketization of local state-owned enterprises.In a few days ago, hualong securities said that to accelerate the construction of modern enterprise system with Chinese characteristics, we should establish a market-oriented with the mechanism of action and implementation plan according to the reform of state-owned enterprises in gansu province three years and the state-owned enterprise managers members by adopting and leasing management implementation rules, such as hualong securities board of directors for the public hiring of four professional managers.Among them, there is one deputy general manager (in charge of investment banking business), one deputy general manager (in charge of securities investment business), one secretary of the board of directors, and one chief information officer.According to the information released by the Securities Association of China, the company has only six senior executives, including Chairman Qi Jianbang, General Manager Su Jinkui, deputy general manager and chief risk officer Hu Haiquan, Deputy general manager Xu Guoxing, compliance director Lu Weimin, and chairman of the Board of Supervisors Lou Dequan.However, in addition to the above personnel, the operating team members disclosed in the 2020 annual report of Hualong Securities also include Financial director Dang Manlong and deputy general manager Yang Yanli.Generally speaking, the stable management layer of fully licensed securities firms is usually equipped with general manager, several deputy general managers, secretary of the board of directors, chief information officer, chief risk officer and financial officer, etc., who are in charge of the traditional main lines including brokerage, investment bank, asset management and self-management. Although senior executives also hold different positions,But on the whole, the stable management team of the full license brokerage is more than 7 people and above.According to the published information of the Securities Association of China, hualong Securities currently has 1723 employees, 1020 people engaged in general securities business, 17 investment sponsors, 19 securities investment consultants (analysts), 524 securities investment consultants (investment consultants), 110 securities brokers and 33 sponsor representatives.From employee size, Hualong securities and bohai sea securities close, bohai sea securities currently disclosed executive team has 10 members, and do not contain the chairman of the board of directors, the chairman of the board of directors, supervisory board members, that is to say, its management group members have 10, far higher than Hualong securities.Bohai Securities earlier also faced the social recruitment of company executives, took out a number of vice president positions in one fell swoop to market talent selection.Wu Gangliang mentioned, a researcher at the Chinese enterprise reform and development research institute, in recent years, as you can see many state-owned securities for hiring professional managers market, and this is behind the soe reform to push the deepwater area “, three state-owned enterprise system reform goal is to achieve “cadre can up to down, compensation can be high energy, low personnel can enter the”,”The promotion of professional manager system is the core link, and is also one of the key tasks of the three-year soE reform campaign (2020-2022).At the same time, building a stable and mature senior management team of professional managers contributes to business resources, operational efficiency and corporate culture.”On the whole, Hualong Securities adopts the structure of financial holding group in its operation and development strategy. It initiated and established Huashang Fund Management Co., LTD., holding Hualong Futures Co., LTD., Gansu Equity Trading Center, and wholly-owned Golden City Capital Management Co., LTD.If successful listing, its financial assets have the opportunity to get further development, and further feed the real economy of Gansu Province.But at present, Hualong securities capital scale, business scale, compared to the industry ranking is still relatively behind.Wang Chikun, an independent economist, mentioned from the perspective of the brokerage industry that the current supply of securities brokerage-related services has turned from shortage to surplus, and the industry has begun to develop vertically. Instead of increasing together, it is now fighting in the stock market.In this case, the impact of listing or industry mergers and acquisitions to expand the scale, find a better business strategy has become the focus of the current market.At the same time, with the promotion of registration system reform, securities firms still have policy dividends in addition to the stock competition, while investment banking and investment-related businesses are the most directly benefiting sectors of securities firms.”For example, the establishment of the Beijing Stock Exchange not only increases the number of listed companies, but also lowers the threshold for listing, which is good for equity financing of small and medium-sized enterprises, and also releases the demand for investment and withdrawal of small and medium-sized projects.”It can be seen that the two deputy general managers of Hualong Securities are just in charge of investment banking business and securities investment business respectively.In August 2021, Hualong Securities, which was actively preparing for IPO filing, was placed under investigation by China Securities Regulatory Commission due to the “Blue Mountain Technology Case”.Blue Mountain, then a star stock on the New Third Board, was placed under investigation in 2020, and a number of intermediaries related to it were subsequently placed under investigation, halting dozens of IPO projects they served.This not only affects the IPO work of Hualong Securities itself, but also impacts its relatively weak equity investment bank.Wind data show that according to the issuance date, Hualong Securities raised a total fund of 11.261 billion yuan for equity investment banking underwriting projects in 2021, ranking 81st among 110 securities brokers included in the statistics.Among them, there was only 1 ipo project, raising 309 million yuan, 2 additional projects, raising 1.728 billion yuan, underwriting and sponsor fees of 28 million yuan.At the same time, from the perspective of the investment bank development expectation of Hualong Securities in 2022, as of January 20, 2022, hualong Securities has 4 IPO projects in hand (excluding the projects whose review status is termination of review and only guidance for registration and acceptance), two of which are planned to be listed on the Main board of Shenzhen Stock Exchange, one whose review status is accepted and one whose review status is suspended.In 2021, nanjing Puai Medical Equipment Co., LTD., which was suspended due to the investigation of Hualong Securities, was terminated (withdrawn).Progress is relatively smooth is the recent market attention high Gold Hui Mining, the project is to be listed on the Main board of The Shanghai Stock Exchange, has passed the review meeting.Jinhui Mining, a local company in Gansu province, raised 1.3 billion yuan.In view of this data, the new deputy general manager in charge of investment bank mentioned above may face the responsibility of leading the further development of Hualong Securities Investment bank.Sprint listed in addition to the development of business, more important for Hualong securities is still the promotion of IPO.Since November 2017, hualong Securities submitted the filing materials of ipo and listing guidance and was accepted, it has spent more than 4 years of listing guidance period.”We have been actively pushing ahead with the IPO to see if we can meet the filing deadline for this year (2021), which is now based on June 30, 2021.”In 2021, hualong Securities related personnel to the “China Business News” reporters mentioned so.But that has changed.In December 2021, hualong securities received administrative penalty issued by the CSRC, which displays hualong securities not diligently in the blue mountain project of science and technology, the securities and futures commission to hualong securities shall be ordered to make corrections, and given a warning, confiscated business income is 1.5 million yuan, and fined 3 million yuan, the directly responsible person in charge to give warning, and fined 500000 yuan respectively.With the punishment of the landing, Hualong Securities IPO road sudden major “black swan” event ended, THE IPO of the restart.But at the time, the IPO reporting base date facing adjustment.The validity period of the financial audit report is 6 months, and the earliest or delayed date of the IPO filing of Hualong Securities is December 31, 2021. Under the combination of the Spring Festival holiday, the annual report audit disclosure and the time required for the preparation of relevant materials, it is difficult to complete the filing in a short time.Also taking into account the six-month validity period, completing the filing in the first half of 2022 May also be the earliest that Hualong Securities can achieve.It can be seen that Hualong Securities as an important brokerage license in Gansu Province, its IPO for the local, has more significance.At present, Gansu Financial Holding is the largest shareholder of Hualong Securities, the company said that the company’s investment income in the past two years mainly comes from Hualong Securities and Guangdaxing Longtrust Co., LTD.At the same time, Hualong Securities also undertook the important task of serving the local economy in the past development.In 2021, securities companies are required by regulation to rectify the secondary management subsidiaries set up under their private equity investment fund subsidiaries. In principle, they are not allowed to set up secondary management subsidiaries to carry out relevant business without approval after the rectification.Hualong Securities has withdrawn from more than ten related companies through capital reduction, equity transfer, liquidation and cancellation, among which a large number of investment companies involved in gansu local infrastructure and emerging industries.Even though it has withdrawn in large numbers, tianyan data show that at present many local infrastructure investment, industrial investment funds and investment companies in Gansu also have direct investment or shareholding of Hualong Securities.Jiang Han, a senior researcher at Pangu Think Tank, said, “The development of local securities firms has both advantages and disadvantages. The advantage is that local securities firms often have certain connections and relevant foundations at the local government level, and corresponding business characteristics can be seen in the development.But those same strengths can sometimes turn into weaknesses.It can be seen that local securities brokers in some central and western provinces often have a heavy burden, coupled with the relatively weak economic development of the region, their own operating pressure is also relatively large.”Under such circumstances, the market is concerned about whether The IPO of Hualong Securities can be launched in 2022, but it is not known because Hualong Securities has not responded to the specific IPO timetable.Reporters will be watching.(Edited by Xia Xin and proofread by Zhai Jun)