What Is Middle-Market Investment Banking?

Dongxing Securities Co., Ltd. is a national comprehensive securities company initiated by China Eastern Asset Management Corporation, China Aluminum Corporation, and Shanghai Dasheng Assets Co., Ltd. with the registered place in Beijing. The registered capital is 1.504 billion yuan. In 2011, the capital increase and share expansion were completed, and the registered capital reached 2.004 billion yuan. As a joint-stock securities company, Dongxing Securities has strong shareholders. China Eastern Asset Management Corporation, a major shareholder, is a large state-owned financial enterprise established with the approval of the State Council. It has a registered capital of 10 billion yuan and has branches throughout the country. Its shareholder, China Aluminum Corporation, is a large state-owned listed company. Sheng Assets Co., Ltd. is a wholly state-owned comprehensive investment holding company under the Shanghai Municipal Government.

Dongxing Securities

Since the establishment of the company, it has invested heavily in supporting the development of key investment banking businesses, and has provided clients with investment banking services such as new shares issuance and underwriting, refinancing, mergers and acquisitions integration, and financial consulting. As one of the first 28 companies listed on GEM, Dongxing Securities, the sponsor of the Pathfinder, has developed rapidly in the investment banking business. In the first half of 2011, the "Asia Pacific Technology" and "Dongbao Bio" sponsored by the underwriters have achieved great success in the secondary market environment. In particular, the first launch of "Asia-Pacific Technology", the actual fundraising was as high as 1.6 billion yuan, and the over-raised fund was as high as 207.5 percent, further witnessing Dongxing Investment Bank's sponsorship strength.

I. Perfect large investment bank system

Dongxing Securities has established an investment bank system that is in line with international standards.

On February 26, the 21st A-share listed securities company Dongxing Securities was listed on the Shanghai Stock Exchange. Dongxing Securities publicly issued 500 million shares at an issue price of 9.18 yuan per share, and issued a price-earnings ratio of 22.97 times. There was no suspense after the stock opened. As of the close, the stock reported 13.22 yuan, up 44.01%. It is understood that by the end of 2014, Dongxing Securities had a net capital scale of 6.147 billion yuan and was rated as a Class A Class A securities company in the 2014 securities company classification. In the 2013 ranking of various business indicators of securities companies announced by the China Securities Association, Dongxing Securities ranked 22nd in operating income and 20th in net profit.

Dongxing Securities prospectus shows that from 2012 to 2014, Dongxing Securities' operating income was 1.431 billion yuan, 2.034 billion yuan, and 2.598 billion yuan, respectively; year-on-year growth rates were 29.94%, 42.01%, and 27.73%. Net profit increased from 513 million yuan in 2012 to 1.041 billion yuan in 2014, with net profit growing faster than revenue growth.

Among them, the securities brokerage business is an important source of revenue for the company. From 2012 to 2014, the company's brokerage business realized a significant increase in net fee and commission income. From 2012 to 2014, the company's net fee and commission income were 822 million yuan, 1.079 billion yuan and 1.475 billion yuan, respectively. ^[1]