July 16, The China Securities Regulatory Commission Wednesday revealed its latest report rating securities firms, the first time it has made the report public since it began appraising brokerages in 2007.
According to the report, which covers the period from April to May, 98 securities firms have received ratings from the regulator. The CSRC handed out 12 AA ratings, 23 A ratings, 49 B ratings and 14 C ratings.
A total of eight securities firms share the same ratings with their respective parents, the report said.
The 21st Century Business Herald has learned that four securities firms have had their ratings upgraded from B to AA. China International Capital Corp. and CITIC Securities Co. Ltd. (600030.SH) have both retained their AA ratings for four consecutive years.
China Galaxy Securities Co. Ltd., Orient Securities Co. Ltd., China Securities Co. Ltd. and CITIC Kington Securities Co. Ltd. received AA ratings for the first time, while BOC Holdings International Ltd. was downgraded from AA to A.
No securities firm gained the top AAA rating or bottom D and E ratings, according to the report.
The grading of a brokerage is an overall appraisal of the company’s net capital reserves, IT system, net profit, commission income and general operations, the CSRC said in an earlier statement.
CITIC Securities, Haitong Securities Co. Ltd. (600837.SH) and China Merchants Securities Co. Ltd. (600999.SH) were the top three brokerages in terms of total assets, net assets and net capital by the end of April, according to the report.
Guotai Junan Securities Co. Ltd., CITIC Securities and China Galaxy ranked top three in terms of revenue and net profit, while Galaxy Securities, Guotai Junan and GF Securities Co. Ltd. (000776.SZ) ranked top three in terms of outstanding settlement funds and commission income.
Analysts remarked that GF Securities may suffer from its underwriting of Suzhou Goldengreen Technologies Ltd.’s initial public offering, adding that the securities firm may even have its rating downgraded to B from A in the next appraisal.
