China Zhongji Investment completes targeted investment in Dongxing Securities
Recently, China Zhongji Investment completed a targeted investment in the private placement of shares of Dongxing Securities Co., Ltd. (hereinafter referred to as "Dongxing Securities", stock code: 601198.SH). This private placement raised RMB 4.493 billion, mainly used to increase the company's capital, supplement its working capital, expand its business scale, and enhance its market competitiveness.
Dongxing Securities is a national comprehensive securities company approved by the Ministry of Finance and the China Securities Regulatory Commission in 2008, with China Orient Asset Management Co., Ltd. as its main initiator. It was listed on the Shanghai Stock Exchange on February 26, 2015, becoming the first listed securities company affiliated with an asset management company in China. Its controlling shareholder is China Orient Asset Management Co., Ltd., and its actual controller is the Ministry of Finance. The company's business covers securities underwriting and sponsorship, securities brokerage, securities investment consulting, securities investment fund sales, proprietary securities trading and asset management, margin financing and securities lending, sales agency of financial products, and public offering securities investment fund management, forming a comprehensive financial service system covering on-exchange and off-exchange, online and offline, domestic and overseas markets. Dongxing Securities has a clear business model, with steady revenue and profit growth in recent years. Its investment banking business, wealth management business, and other businesses have seen steady improvements in revenue and profitability. From 2018 to 2021, it was rated A-class A by the China Securities Regulatory Commission for four consecutive years and was included in the first batch of securities companies' whitelist by the China Securities Regulatory Commission. S&P, Fitch, and Moody's maintain investment-grade ratings for the company, and its domestic long-term credit rating remains AAA. Tan Runzhan, Partner and Managing Director of China Zhongji Investment, stated that as the central hub of the capital market, the securities industry shoulders the historical mission of providing efficient financial services under the new development pattern. Against the backdrop of continuous capital market reforms, with the launch of the Beijing Stock Exchange, the full implementation of the registration system, and other policies being implemented, the securities industry has opportunities for extraordinary performance. Currently, the overall valuation of the securities sector is at a low level, benefiting from the improvement in market prosperity, and performance is in a state of high-profit growth. The downside is limited, and the upside potential is promising, making it a good investment opportunity. Currently, Dongxing Securities' private placement price is at a historically low level. China Zhongji Investment is optimistic about Dongxing Securities' strategic direction, with prominent proprietary trading, investment banking, and asset management businesses. Based on wealth management transformation, with large-scale investment banking as a lever and large-scale asset management as a driving force, its market competitiveness will be further enhanced.
