On the evening of March 27th, Everbright Securities, Mired in losses from overseas investments, delivered a dismal report card to the market: in 2018, it achieved a net profit attributable to shareholders of the listed company of 103 million yuan, a year-on-year decrease of 96.57%. The net profit of Everbright Securities has dropped significantly, mainly due to the financial crisis of its wholly-owned subsidiary, Everbright Capital. As a result, it has made provisions for estimated liabilities and asset impairment of 1.521 billion yuan.

When implementing this overseas investment, Xue Feng, the chairman of Everbright Securities, was then the general manager of Everbright Securities and bore leadership and management responsibilities for it. According to relevant regulations, the Shanghai Securities Regulatory Bureau has taken administrative regulatory measures of regulatory talks against Xue Feng.

In 2018, the Everbright Securities led by Xue Feng was no longer the fifth in the industry as it had been ten years ago; instead, it was even dropped out of the top ten. According to the data from the Securities Association of China, if ranked by net capital, the top ten companies in the middle of 2018 were Guotai Junan, CITIC, Haitong, GF, Shenwan, Galaxy, China Merchants, Huatai, Guosen and Orient Securities.

The net capital of the tenth-ranked Orient Securities is approximately 40 billion yuan, that of the top-ranked Guotai Junan is about 90 billion yuan, while the net capital of Everbright Securities at the end of 2018 was 35 billion yuan.

At present, Everbright Securities has almost become the most awkward securities firm.

After the 'Finger error' incident in 2013, Xue Feng, who was entrusted with the mission at a critical moment, held high the banner of 'reform' and encouraged Everbright Securities to 'start a second business' with high spirits. However, this failed to help Everbright Securities maintain its position as an established securities firm. Instead, it led to a loss of 1.5 billion yuan for Everbright Securities due to the failure of its investment in the overseas MPS company. Where will Everbright Securities go in the future?

'Everbright has experienced more than one accident, indicating that there are many problems within the company, including in risk control, management, compliance and other aspects, and they are all old issues.' ' Wan Zhe, chief economist of the International Cooperation Center of the National Development and Reform Commission, told The Times Weekly reporter.

Now we have reached another turning point. The market is accelerating its opening up. Domestic securities companies need to be well-prepared. Those who run slow will be eliminated. Wan Zhe said.

All information is subject to the announcement. A person from the securities department of Everbright Securities told the reporter of Times Weekly.

The fifth place in the industry that has fallen

Trends are changing.

During his first decade at Everbright Securities, Xue Feng relied on the acquisition of the business department. However, in the ten years since Xue Feng took office, times have changed. Brokerage business is no longer the main source of income. In the securities industry, what matters is net capital, scale and overall strength. Everbright Securities has fallen behind.' Li Jun (a pseudonym), an analyst of the non-banking financial industry at a public fund in Shenzhen, told The Times Weekly reporter.

Especially after 2015, various securities companies rushed to go public or raise funds through private placements. In this round of capital expansion, Everbright was left behind. Li Jun said.

According to statistics, since 2015, among the securities companies listed on the Hong Kong Stock Exchange, GF Securities has raised the most funds, raising 32.1 billion Hong Kong dollars in its listing on the Hong Kong Stock Exchange in April 2015. Guotai Junan also raised 17.2 billion Hong Kong dollars in its listing on the Hong Kong Stock Exchange in April 2017, and China Merchants Securities raised 10.7 billion Hong Kong dollars in October 2016.

In contrast, Everbright Securities raised only 8.9 billion Hong Kong dollars when it went public on the Hong Kong Stock Exchange in August 2016.

In addition, taking advantage of the bull market in 2015, many securities companies seized the opportunity to go public on the A-share market. Among them, Guotai Junan raised the most funds, raising 30 billion yuan when it went public in June 2015. Orient Securities also raised 10 billion yuan in March 2015.