In recent times, all 42 A-share listed securities brokers have completed the disclosure of their 2024 annual reports. Data shows that against the backdrop of a continued downturn in the Chinese economy, the investment banking business of securities brokers has significantly contracted, with many institutions reporting losses.
According to Wind statistics, the total net income from transaction fees in the investment banking business of the 42 securities brokers amounted to 30.608 billion yuan, a year-on-year decrease of 27.4%.
In 2024, the number of A-share IPOs was only 100, a sharp decrease of 68.05% compared to the previous year, with a total fundraising amount of 67.353 billion yuan, a decrease of 81.11%. The scale of secondary offerings fell by 70.03% to 223.12 billion yuan. The equity financing market shrunk significantly, directly impacting the investment banking business of securities brokers.
CITIC Securities ranked first with 4.159 billion yuan in net income from investment banking fees. However, leading securities firms are under pressure, with CITIC Jiantou seeing the largest decline in investment banking revenue at 48.08%, with a net income of only 2.49 billion yuan. The profit of its investment banking division plummeted from 1.867 billion yuan in 2023 to 484 million yuan, a decrease of nearly 75%. Huatai Securities, CICC, and other top securities firms all experienced declines in investment banking revenue of over 30%.
Smaller securities firms had particularly dismal performances, with 14 investment banking divisions reporting losses. Founder Securities had the most severe losses in its investment banking division, reaching as high as 593 million yuan, mainly due to losses from “bargain selling” real estate assets. Huaxin Securities saw its investment banking revenue drop to only 17 million yuan, a year-on-year decrease of 83.74%, making business transformation difficult. Yangtze Securities saw its investment banking revenue drop from 640 million yuan in 2023 to 349 million yuan, with its withdrawal rate skyrocketing from 50% to 84.62%, resulting in a shift from profit to loss.