Zhong Guo Ji Jin Bao·2026-01-18 14:11Core Viewpoint - The bond issuance by securities firms has surged significantly at the beginning of 2026, driven by a strong A-share market and increased capital demand for business expansion and transformation [1][2]. Group 1: Bond Issuance Growth - As of January 17, 2026, the total bond issuance by securities firms reached 119.52 billion yuan, marking a year-on-year increase of 71.87% [2]. - The number of bonds issued totaled 44, which is an increase of 2 compared to the same period last year [2]. - Major firms like China Galaxy and Shenwan Hongyuan have received approval for substantial bond issuances, indicating a trend towards diversification in bond issuance among both traditional and internet-based securities firms [2]. Group 2: Market and Policy Factors - The increase in bond issuance is attributed to a combination of business transformation, policy guidance, and a low-cost financing environment [3]. - The active A-share market has led to a growing demand for capital-intensive business models, prompting securities firms to seek additional capital through bond issuance [3]. - The current low interest rate environment has made bond issuance an attractive option for firms looking to refinance existing high-interest debt and optimize their financial structures [3][4]. Group 3: Implications for the Industry - The bond issuance trend is expected to continue in the short to medium term, as long as market activity remains robust [5]. - The competitive landscape is shifting towards a "stronger gets stronger" dynamic, where leading firms are more willing and able to finance their operations [6]. - Increased capital strength among securities firms is likely to enhance their market-making and liquidity provision capabilities, contributing to market stability and supporting the real economy [6][7]. Group 4: Differentiation Among Firms - The current bond issuance trend is characterized by a concentration among leading firms, which benefit from higher credit ratings and lower financing costs [7]. - This differentiation may lead to a widening gap in financing capabilities between large and small securities firms, potentially increasing industry concentration [7].