2017-08-24 16:00Capital and Financial Performance - The registered capital increased to RMB 6,699,409,329.00 from RMB 5,808,135,529.00 compared to the end of the previous year, representing an increase of approximately 15.3%[15] - The net capital rose to RMB 52,233,457,431.88 from RMB 45,524,144,216.62, marking an increase of about 14.9% year-over-year[15] - The company's operating revenue for the first half of the year reached ¥5,859,242,248.15, representing a 12.73% increase compared to the same period last year[28] - Net profit attributable to shareholders increased by 13.85% to ¥2,552,259,127.57, while the net profit excluding non-recurring gains and losses rose by 15.70% to ¥2,565,769,765.81[28] - Total assets at the end of the reporting period were ¥242,817,149,931.22, a slight decrease of 0.10% from the previous year[28] - Total liabilities decreased by 9.26% to ¥166,191,382,742.85, indicating improved financial stability[28] - Shareholders' equity attributable to the parent company increased by 27.93% to ¥76,537,135,968.00, reflecting strong growth in equity[28] - Basic earnings per share decreased by 8.56% to ¥0.3529, while diluted earnings per share remained the same[29] - The liquidity coverage ratio improved to 207.66%, up from 151.00% in the previous year, indicating better short-term financial health[29] Business Qualifications and Expansion - The company obtained several new business qualifications, including core dealer qualifications for credit risk mitigation tools in January 2017[15] - The company holds various business qualifications, including customer fund consumption payment services and stock option market-making business, obtained in 2015[16] - The company has expanded its business qualifications to include futures contract trading and asset management in Hong Kong since 2014[18] - The company has a comprehensive range of qualifications for its subsidiaries, including private investment fund management and qualified domestic institutional investor qualifications[20][21] - The company is listed on both the Shanghai Stock Exchange (A-shares) and the Hong Kong Stock Exchange (H-shares) under the ticker symbols 600999 and 6099, respectively[26] - The company has been actively involved in various financial services, including margin trading and securities lending since 2010[19] - The company has established a strong presence in the interbank bond market with qualifications obtained in 2016[18] - The company has been focusing on expanding its internet securities business since 2014[16] - The company expanded its operations by obtaining a financial investment business license in South Korea, becoming the first mainland securities company to enter the Korean market[44] Risk Management - The company is subject to various risks, including regulatory changes that may impact business strategies and operational costs[7] - The company emphasizes risk management through organizational structure, system frameworks, and information technology systems[7] - The company is committed to optimizing business processes to mitigate identified risks[7] - The company's risk management framework includes a comprehensive global market risk management system, ensuring stable growth and maximum efficiency[47] - The risk management committee is the highest decision-making body for operational risks, with a chief risk officer responsible for monitoring and reporting overall risk levels[141] - The company has developed a quantitative risk management indicator system, including risk appetite and tolerance metrics, to guide resource allocation towards high-risk-return businesses[145] - A comprehensive stress testing mechanism is in place to evaluate liquidity, credit, and market risks under extreme scenarios, ensuring preparedness for adverse conditions[146] - The company employs a unified market risk management system across all business lines and currencies to control market risk effectively[151] - The company faces credit risk primarily from client defaults in margin financing, bond investments, and counterparty defaults in derivatives trading[161] Operational Highlights - The company opened 934,000 new customer accounts, marking a 13.45% increase compared to the same period last year[59] - The total trading volume for wealth management plan clients increased by 24.09% to 872.064 billion CNY[60] - The company's market share in stock trading volume rose to 3.93%, an increase of 0.13 percentage points year-on-year[60] - The financing and securities lending balance reached 48.317 billion CNY, ranking 5th in the market[62] - The stock pledge repurchase business balance grew by approximately 11.51% to 48.324 billion CNY[62] - The company maintained a low risk loss rate and achieved an "AA" rating from the China Securities Regulatory Commission for 10 consecutive years[53] - The company’s financial futures market share increased by 79.91% year-on-year, with the government bond futures market share growing by 216.02%[61] Asset Management and Investment - The total asset management scale reached 645 billion RMB, an increase of 2.4% compared to the end of 2016[83] - The company's actively managed assets reached 118.45 billion RMB, growing 16.3% from the end of 2016[82] - The asset management income for the first half of 2017 was 4.92 billion RMB, slightly down from 5.05 billion RMB in the same period of 2016[89] - The revenue of Bosera Asset Management Co., Ltd. increased to 151,934 million RMB in the first half of 2017, compared to 109,818 million RMB in the same period of 2016[130] - The revenue of China Merchants Fund Management Co., Ltd. was 129,095 million RMB in the first half of 2017, up from 111,146 million RMB in the same period of 2016[133] Compliance and Regulatory Matters - The company received an administrative regulatory measure from the Shenzhen Securities Regulatory Bureau, which included a three-month suspension of new PB system account openings due to compliance issues[186] - The company emphasized compliance and internal control improvements following the regulatory measures taken against it[186] - There were no significant lawsuits or arbitration matters during the reporting period[188] Social Responsibility - The company is actively involved in targeted poverty alleviation efforts, focusing on institutionalized support rather than temporary aid[199] - The company has mobilized 226 securities business departments across 28 provinces to assess financial needs in over 500 impoverished counties[199] - The company has completed a financing project for a targeted poverty alleviation county, raising RMB 30.77 billion for a local company[200]