Nan Fang Du Shi Bao·2025-04-09 10:35Core Viewpoint - The investment banking business of securities firms in 2024 is facing a significant downturn, with 77.27% of the 22 listed firms reporting a decline in revenue, highlighting the industry's struggle even among leading firms [2][3]. Group 1: Industry Overview - In 2024, the A-share equity financing issuance scale dropped to RMB 321.65 billion, a decrease of 71.65% year-on-year, with IPO issuance down 81.11% to RMB 67.35 billion [3]. - The total investment banking revenue for the 22 firms reached RMB 21.025 billion, reflecting a year-on-year decline of 29.47% [3]. - Among the 22 firms, 17 reported a decrease in investment banking revenue, indicating a widespread industry challenge [3]. Group 2: Revenue Performance of Major Firms - CITIC Securities led the industry with an investment banking revenue of RMB 4.033 billion, despite a decline of 35.43% [4]. - Other firms with revenues exceeding RMB 2 billion include Guotai Junan (RMB 3.083 billion, down 19.72%), CICC (RMB 2.583 billion, down 20.33%), and CITIC Construction Investment (RMB 2.491 billion, down 48.14%) [4][5]. - Only GF Securities reported a year-on-year increase in investment banking revenue, growing by 35.08% [6]. Group 3: Underwriting and Project Performance - CITIC Securities completed 55 A-share main underwriting projects in 2024, with an underwriting scale of RMB 70.359 billion, holding a market share of 21.87% [5]. - The number of main underwriting projects for CITIC Securities decreased by 85 compared to 2023, with a reduction in underwriting scale by RMB 207.554 billion [5]. - In terms of project numbers, CITIC Securities and CITIC Construction Investment both secured 11 IPO underwriting projects, leading the market [8][9]. Group 4: Future Outlook and Regulatory Environment - The China Securities Regulatory Commission (CSRC) is focusing on enhancing the IPO support mechanism for unprofitable technology companies, which may influence the underwriting strategies of securities firms in 2025 [12][16]. - CITIC Securities and Guotai Haitong are positioned to lead in equity underwriting for 2025, with CITIC Securities achieving RMB 21.420 billion in equity underwriting so far [11][14]. - The emphasis on high-quality IPOs and the responsibilities of intermediaries will be critical for securities firms as they navigate the evolving regulatory landscape [16].