CITIC Securities is the largest securities company in China, with businesses covering investment banking, brokerage, securities trading and asset management.
Year in review
CITIC Securities experienced significant growth in 2014, driven by the strong recovery of capital market activities. The traditional fee-based business, including brokerage, asset management and investment banking, recorded strong growth. CITIC Securities achieved profit attributable to ordinary shareholders of RMB11.3 billion, an increase of 116%.
With the re-launch of A-share IPOs and the strong growth of follow-on offerings, CITIC Securities experienced a significant growth in the scale of its equity financing business and was the lead underwriter in 40 transactions in the A-shares market, with an aggregate value of RMB96 billion. Outside mainland China, CITIC Securities completed 13 IPOs, 11 of which were in the Hong Kong market.
In 2014, CITIC Securities also completed 262 projects involving bond underwriting, medium term notes and commercial papers as well as asset-backed securities, with an aggregate value of RMB335 billion.
The brokerage business remains a significant profit generator, and CITIC Securities continued to be a leader in China in 2014. Following the recovery of the A-shares market, CITIC Securities recorded a total trading turnover of RMB9.8 trillion in stocks and funds on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, which contributed to its strong revenue growth.
CITIC Securities’ trading business includes flow-based and proprietary trading. Flow-based trading consists of equities, fixed income products, commodities, margin financing and securities lending with the balance of margin financing and securities lending in mainland China recording RMB72 billion in 2014, giving CITIC Securities a first ranking in the market for this sector.
The asset management business of CITIC Securities grew strongly in response to customers’ increasing wealth accumulation and investment needs, as well as easing regulation and capital market reforms. At the end of 2014, assets under management of CITIC Securities amounted to RMB755 billion.
CITIC Securities is the largest shareholder of China AMC, a leading asset management company with RMB458 billion under management as at the end of 2014, an increase of 37% from the previous year.