– Achieved RMB18.97 billion in total revenue and other gains, up by 28.82% year-on-year
– Profit for the period attributable to shareholders of the parent company reached RMB6.40 billion, up by 57.88% year-on-year
– Net assets amounted to RMB128.29 billion
Effectively Increased Customer Base and Activity through Digitalization
Since putting forward the digitalization strategy in 2019, the Company has launched “ZhangLe Wealth”, a mobile service platform for customers, and “AORTA”, a cloud platform for investment advisors.
The number of monthly active users of “ZhangLe Wealth” exceeded 9.11 million at the end June 2020 and reached 10 million users in July, creating a new record within the securities industry. In the first half of the year, the two platforms strengthened their coordination, and efficiently and accurately empowered over 2000 front-end investment advisors nationally through iterations and upgrades.
During the same period, the Company’s “ZhangLe Global” platform was also launched to enhance its service capabilities in overseas trading and asset allocation, providing investors with a better global investment experience.
ZhangLe Wealth and AORTA are the first technologically empowered wealth management platforms within China’s securities industry, and boast more than 15.05 million customers, with total assets of client accounts reaching RMB3.92 trillion, up by 17% year-on-year, to continue leading the industry.
According to the Shanghai and Shenzhen Stock Exchanges, the Company’s equity and fund trading volume amounted to RMB14.62 trillion, up 32% year-on-year, maintaining a leading position within the industry. Drawing on advanced wealth management service system and experiences, the Company accelerated the development of its wealth management business from product, service, procedure, technology platform and other aspects.
The balance of margin financing and securities lending business of the Company was RMB76.99 billion, with a year-on-year increase of 40% and a market share of 6.62%, allowing the Company to maintain its industry leading position.
The Company fully advanced the development of the financial product business, with the number of financial products reaching 5,691. In addition, the sales volume of financial products was robust, increasing 57% to RMB263.81 billion, as it leveraged the improvement of the professional capability and digital empowerment. The Company also became one of the first batch of securities companies to obtain the pilot qualification for fund investment advisory business.
At the same time, AssetMark, a leading turn-key asset management platform in the United States acquired by HTSC in 2016, has retained its operational independence, and through its leading business model and advanced technology, maintained the steady growth of its AUM, consolidated its industry leadership and continuously increased the Company’s international business revenue. The total platform assets of AssetMark reached new heights of USD 63.23 billion, an increase of 12.81% year-on-year.
Capturing Opportunity in Institutional Services through Application and Innovation of Digitalization
Chinese securities companies have proactively grasped the new trends in technological development and usage. The COVID-19 pandemic in the first half of 2020 stifled a significant number of offline activities, including all investment banking projects and research roadshows; as a result, other institutional services that relied on physical meetings were faced with mounting challenges. The Company continuously devoted efforts to exploring emerging technologies and mining big data, to constantly diversify and optimize the functions and services of its mobile platform.
“Xing Zhi” APP, a self-developed digital platform by the Company has been playing an important role and gained awareness and attention from an increasing number of institutional clients, facilitating the efficient interaction between institutional clients and business resources. Xing Zhi facilitates online research of products, offers enhanced client experiences and vigorously promotes business cooperation, with registered institutional clients up 386%. The Company also held around 50 video roadshows for listed companies through the APP.
With the market changes and the update on regulatory requirements, the Company improved its marketing service system, strengthened risk prevention and control, bolstered the effectiveness of risk management, promoted the high-quality development of the capital-based intermediary business, and continued to expand its brand influence. The Company launched the first open-ended online securities lending and trading platform on the market, “Securities Lending Path”, effectively connecting supply and demand to create a new model of securities lending through digitalization, providing all-rounded and one-stop services for users.
The Company engaged in the field of technological innovation and made full use of its advantages in the capital market, with a view to actively serve outstanding enterprises in various fields including TMT (Technology, Media and Telecommunication), healthcare and smart manufacturing.
In addition to serving a large number of existing customers, the Company continued to develop and establish relationships with customers in emerging industries, and empowered corporate clients through an integrated and full-cycle top investment banking service system.
In the second half of 2020, the Company will continue to strengthen its digital operations and management, further improve its customer oriented technology platform and one-stop cloud platform for investment advisors, and optimize the business system integrated with online and offline resources.
In addition, HSTC has built a platform-based trading capability, successfully achieving asset pricing rights and productization of trading capabilities cycle. OTC derivatives trading business reached an industry leading position, with settlement volume of bonds ranking second, while trading volume of market making business for exchange-traded options was among the top in the industry.
The asset management business has built a digital platform and continued to strengthen the capabilities of active management, with operating income of Huatai Asset Management reaching RMB1,299.03 million, ranking first in the industry, according to Wind statistics. According to the statistics from the Asset Management Association of China, as of the end of the second quarter of 2020, the Company’s private active asset management averaged RMB270.50 billion on a monthly basis, ranking third in the industry.
Acceleration of Global Layout and Cross-Border Collaboration with Fortification of New Economic Advantage
During the first half, the Company’s investment banking business took full advantage of the opportunities from the registration system reforms, and focused on technology. Through its integrated cross-border linkage, the business strengthened its domestic and overseas in-exchange and OTC cross-market synergies, developed innovative benchmarking projects and completed a number of cross-border projects.
According to statistics from Wind Information, the Company’s equity lead underwriting amounted to RMB73.72 billion, ranking third in the industry. According to statistics from the Shanghai Stock Exchange, the Group sponsored 15 companies on the STAR Market, ranking third in the industry. Jiangsu Aidea Pharmaceutical was one of the projects with the highest registration efficiency since the implementation of the new registration system.
In the first half of 2020, the Company had seven mergers and acquisitions and restructuring transactions, which were approved and registered by the CSRC, ranking the first in the industry. The Group sponsored Suzhou HYC Technology to become the first company to launch an IPO on the SSE STAR Market. According to the statistics from Wind Information, the lead-underwriting amount of full-license domestic/overseas bonds was RMB229.97 billion, up by 47%.
The Company’s private equity fund management business continued to focus on healthcare, TMT and other potential growth industries. According to the Asset Management Associations of China, by the end of June, the Company’s AUM amounted to RMB48.39 billion. The Company has invested in 20 projects, of which 6 of them are now STAR Market listed companies.
HTSC’s international business achieved revenue of RMB1.89 billion, up 59% year-on-year, driven by the accelerated two-way opening up of the capital market and coordination of the Group’s domestic and global network, to ultimately offer varying financing channels for clients. According to data from Hong Kong Stock Exchange and Dealogic, Huatai International is one of the leading sponsors in Chinese securities companies in terms of Hong Kong IPOs.
The Company always endeavors to offer global resources to its clients through continuous deepening of integrated cross-border collaborations, serving the overseas expansion of Chinese clients and the China inbound investment of international investors . Standard & Poor’s maintained a positive rating outlook for the Company and its subsidiary Huatai International, assigning a “BBB” long-term issuer credit rating and an “A-2” short-term issuer credit rating.
Huatai International was fully integrated into the full business chain system of the Company. Further enhancing the cross-border collaboration of resources and deeply promoting the construction of a cross-border financial product platform, to provide a full range of cross-border integrated financial services for domestic and foreign clients.
The Company relied on its domestic and global advantages of domestic and overseas linkage of investment banks and its own successful GDR issuance experience, and served as a joint global coordinator and joint bookrunner to help CPIC in the successful implementation of its GDR issuance. It also has become the only domestic securities company with both GDR issuance and underwriting experience, and the only securities company that has participated in all domestic GDR issuance projects. Other notable projects include the successful Hong Kong listings of Pejia Medical, Net Ease and JD.com, among other industry leading pharmaceutical companies, as well as the “full circulation” approval of numerous H-share companies including Agile A-Living and Zhaojin Mining
The Company gave full play to the advantage of its wide-reaching platforms and constantly enhanced its strengths for professional business development. It also continuously optimized the business structure system, remained focused on its industry positioning, and strengthened the in-depth layout of key areas.
In the second half of 2020, the Company will continue to push forward the principle of “One Huatai”, and accelerate the construction of digital services platforms for institutions, leverage the advantages of “investment banking gene + full business chain”, strengthen business synergy mechanisms, further enhance pricing capabilities and transaction capabilities, and build a more efficient and competitive institutional services ecosystem.
In addition, HTSC will remain steadfast in fight against COVID-19. According to Wind statistics, the Company has underwritten 32 pandemic prevention and control themed bonds with an underwriting scale of RMB7.06 billion. It has also set up the “Yixin Huatai” special public health fund to help Hubei and other regions in the fight against COVID-19, with donations from the Group amounting to RMB20 million. The “Yixin Huatai, One Tomorrow” public welfare project has also donated pandemic prevention materials to 18 schools to assist children in distress return to class.
For enquiries, please contact:
Citigate Dewe Rogerson
Tel: +86 10 6567 5056
Tel: +852 3103 0118
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