Core Viewpoint - The financial industry in China is experiencing a significant shift towards "anti-involution," with regulatory measures being implemented to address issues of price distortion and non-market behavior in the bond issuance process [1][3]. Group 1: Regulatory Measures - The China Interbank Market Dealers Association issued a notice requiring lead underwriters to refrain from quoting underwriting fees below cost when participating in bond project bidding [1]. - The notice aims to tackle problems such as pricing distortions and artificial interference in the book-building process, mandating lead underwriters to establish internal management systems for fee quotations [1]. Group 2: Industry Self-Regulation - A self-regulatory investigation was initiated against six lead underwriters involved in a bond project for Guangfa Bank, triggered by extremely low underwriting service fees, with some institutions quoting as low as 700 yuan [2]. - The investigation revealed that Guangfa Bank may have influenced pricing, prompting further verification by the association [2]. Group 3: Institutional Responses - Major financial institutions, including Industrial and Commercial Bank of China and Guangfa Bank, have made "anti-involution" a key focus in their operational strategies, emphasizing the need to resist cutthroat competition and adhere to long-term business principles [3]. - Local regulatory bodies across various provinces have also taken steps to combat "involution," including issuing negative lists for unfair competition and developing self-regulatory agreements [3]. Group 4: Expert Analysis - Experts note that the "involution" in the financial sector is primarily driven by price competition and performance assessment pressures, creating a complex interwoven situation [4]. - Recommendations for addressing "involution" include collaborative efforts from regulators, banks, and self-regulatory organizations to establish clearer pricing standards and improve service differentiation through innovation [4].

7月11日，6家主承销商被交易商协会要求启动自律调查。在广发银行2025—2026年度二级资本债券项目 中，中国银河（601881）证券、广发证券、兴业银行、国泰海通证券、中信建投（601066）证券、中信 证券等6家主承销商中标，承销服务费总额为6.3万元。 中国银行间市场交易商协会7月30日晚发布《关于规范银行间债券市场簿记建档发行及承销有关工作的 通知》，明确要求"主承销商不得以低于成本的承销费报价参与债券项目竞标"。这是继6月份《关于加 强银行间债券市场发行承销规范的通知》之后，交易商协会再次明确债券承销费报价不得低于成本价。 值得注意的是，交易商协会宣布"承销报价管理办法另行通知"，即未来还有专门针对承销报价的规定出 台，将银行间债券市场发行承销"反内卷"进行到底。 "投资银行最大的成本是人力，有的主承销商旨在争抢市场份额，有时报价低得超出想象，别说覆盖人 力成本，就连差旅成本都覆盖不了。"华南某券商分管投行业务的副总裁对证券时报记者表示，"若不是 烧得起钱的券商或银行，根本参与不了这样的债券项目。" 记者获悉，低价承销费、低价包销、拼盘投资、利益输送等问题，在银行间债券市场屡禁不止，尤其是 债券承 ...

Investment Rating - The report does not explicitly state an investment rating for the securities industry Core Insights - The securities industry in China is experiencing stable revenue growth, with a clear path for high-quality development during the "14th Five-Year Plan" period [2][14] - The capital market reforms are deepening, leading to accelerated consolidation within the securities industry [3][41] - The competitive landscape is being reshaped, with significant differentiation in performance across various business segments [4][42] Summary by Sections 1. Capital Market Reform and Development - Continuous improvement in the capital market system is evident, enhancing the ability to serve the real economy [14][19] - The "New National Nine Articles" issued in April 2024 outlines a clear development blueprint for the capital market over the next five years [15][16] 2. Industry Revenue and Growth - The securities industry is showing a "two rises and two falls" trend, with an increase in company scale and revenue, but a decrease in operating leverage and ROE compared to the beginning of the "14th Five-Year Plan" [23][29] - The number of listed securities firms has increased from 44 in early 2021 to 47 by the end of 2024, with total assets growing from 8.55 trillion to 12.75 trillion yuan [29] 3. Competitive Landscape and Mergers - The leading securities firms maintain a strong profitability advantage, although the gap is narrowing [34][37] - Mergers and acquisitions are accelerating, with a notable increase in significant asset restructuring transactions since September 2024 [38][41] 4. Business Segment Performance - The revenue share of heavy asset businesses has significantly increased, with investment income becoming the main driver for leading firms [43][44] - IPO business is under pressure, reflecting a "stock-bond seesaw" trend, while traditional brokerage business is declining, necessitating a shift towards advisory services [4][5][42] - Asset management business faces dual pressure on scale and income, while international business revenue share is increasing [5][42] 5. Financial Technology and Innovation - Financial technology is expected to enhance service quality and efficiency across the securities industry, with AI driving innovation in business ecosystems [4][11]

Core Viewpoint - The bond underwriting market in China is experiencing severe price competition, with underwriters willing to accept extremely low fees to secure business, leading to regulatory investigations into several institutions for abnormal pricing practices [1][6][10]. Group 1: Underwriting Fee Trends - The underwriting fees for the 2025-2026 secondary capital bond project by Guangfa Bank were reported as exceptionally low, with fees as low as 700 yuan and an average of around 10,000 yuan per institution, significantly below market averages [3][4][6]. - The total underwriting service fee for the six selected institutions was only 63,448 yuan, raising concerns about the sustainability of such low pricing [3][4]. Group 2: Regulatory Response - The China Interbank Market Dealers Association has initiated self-regulatory investigations into six institutions for their unusually low bids, citing potential violations of self-regulatory rules [6][10]. - Previous instances of low underwriting fees by Guangfa Bank have also drawn market scrutiny, indicating a pattern of aggressive pricing strategies that may undermine market integrity [6][10]. Group 3: Market Dynamics - The intense competition among underwriting firms is driven by a desire to increase market share and rankings, leading to a cycle of low pricing that may not cover operational costs [7][9]. - The top six banks dominate the bond underwriting market, holding a combined market share of 53.7%, which pressures smaller firms to engage in price competition to secure business [9]. Group 4: Industry Concerns - There are significant concerns that continued low pricing in the underwriting market could lead to inadequate due diligence and increased risks of bond defaults, potentially harming the overall market [10]. - Experts suggest that a shift in focus from low pricing to value creation is necessary to restore a healthy competitive environment in the bond underwriting sector [10].

Core Viewpoint - The bond underwriting market is experiencing severe price competition, leading to extremely low underwriting fees, which poses risks to the industry's health and sustainability [1][4][7]. Group 1: Market Dynamics - Six financial institutions shared a total underwriting fee of 63,448 yuan, with the highest bid at 35,000 yuan and the lowest at 700 yuan, highlighting the extreme price competition in the bond underwriting market [1][2]. - The low pricing strategy is driven by lead underwriters seeking to win large issuance projects, which enhances their market share and ranking, creating a vicious cycle of price reduction [1][5]. Group 2: Regulatory Response - The China Interbank Market Dealers Association has initiated a self-regulatory investigation into the six institutions for their low-price underwriting practices, following new regulations that prohibit quoting below cost [1][4]. - The association's recent notice emphasizes that underwriting institutions must not quote fees below their costs when participating in bond project bids [4][6]. Group 3: Financial Implications - Despite the increase in underwriting scale, the fees collected by underwriters have been declining, leading to a "revenue growth without profit" scenario [6][7]. - From 2021 to 2024, the total underwriting scale for brokers increased significantly, while the corresponding underwriting fees decreased from 6.489 billion yuan to 3.084 billion yuan [6][7]. Group 4: Industry Impact - The long-term presence of the "floor price" phenomenon is detrimental to the bond underwriting industry's health, potentially leading to a reduction in market diversity as smaller underwriters may exit due to unsustainable pricing [7][8]. - Low pricing may compromise the quality of services provided by underwriters, affecting due diligence and overall bond issuance quality, which could harm investor interests [7][8].

Core Viewpoint - The Hong Kong IPO market has regained its global prominence in the first half of 2025, driven by international capital interest and recovering confidence in the U.S. economy, while the U.S. IPO market continues its recovery trend. The company, aided by its comprehensive capabilities, has successfully completed multiple investment banking projects, including IPOs and bond underwriting in both markets [1]. Group 1: Hong Kong IPO Market - The Hong Kong IPO market has seen a significant increase in activity, with new stock fundraising reaching HKD 107.1 billion in the first half of the year, a sevenfold increase compared to the same period in 2024, marking the strongest record since 2021 [2]. - The company has played a crucial role in connecting mainland Chinese enterprises to international capital markets, assisting firms like Jiangsu Hongxin, Junda Co., and Paige Biopharma-B in their IPOs [2]. Group 2: Notable IPO Projects - The IPO of Paige Biopharma-B is one of the few in the Hong Kong market focusing on innovative therapies for chronic diseases, with a subscription rate of 743.78 times during the public offering, successfully listing on May 27 [4]. - Junda Co. became the first company in the photovoltaic industry to achieve a dual listing on both A-shares and H-shares, with overseas revenue accounting for 58% in Q1 2025, enhancing its global market expansion capabilities [5]. Group 3: U.S. IPO Market - The company has successfully assisted over ten enterprises from various regions, including mainland China, Hong Kong, Singapore, and the U.S., in achieving NASDAQ listings amid the ongoing recovery of the U.S. IPO market [6]. - The IPOs covered diverse sectors such as maritime technology, consumer services, healthcare, and renewable energy, showcasing the company's underwriting capabilities and investor network advantages [8]. Group 4: Bond Issuance - The company has demonstrated its comprehensive service capabilities in cross-border capital markets, extending its support to bond financing for local state-owned enterprises [13]. - Notable bond issuances include a RMB 874.7 million three-year senior unsecured bond with a coupon rate of 7.0% for Zibo City Linzi District Jiuhui Financial Holdings and a USD 60.57 million three-year senior unsecured offshore bond for Sichuan Huixing Industrial Investment [16][17]. Group 5: Future Outlook - The company aims to continue its focus on the Hong Kong market while expanding its international reach, assisting enterprises in achieving their international capital market goals in the second half of the year [17].

Core Viewpoint - The article highlights that while short-term low-price competition in bond underwriting may provide institutions with market share, long-term consequences arise when underwriting fees fall below cost, leading to a "shrinkage effect" in professional services that can have a series of detrimental chain reactions [1] Group 1 - To break the low-price competition dilemma in bond underwriting, collaboration among regulators, issuers, and other stakeholders is necessary to implement targeted solutions [1] - The focus of market competition should shift from "who quotes lower" to "who creates more value," allowing financial intermediaries to escape the fee-based constraints and rebuild a competitive landscape centered on quality and compliance [1] - This shift aims to return bond underwriting services to their fundamental purpose, promoting the long-term healthy development of the bond market from the source [1]

Core Viewpoint - The recent issuance of a 35 billion yuan secondary capital bond has highlighted the issue of extremely low underwriting fees in the bond underwriting market, prompting the China Interbank Market Dealers Association to initiate a self-regulatory investigation into the matter [1] Group 1: Underwriting Fee Issues - The total underwriting service fee for the six selected underwriters was only 63,448 yuan, averaging around 10,000 yuan per institution, indicating a "floor price" for bond underwriting [1] - The association's announcement on July 11 emphasized that if any parties violate self-regulatory rules during business operations, they will face self-regulatory actions [1] Group 2: Causes of Low Price Competition - Three main reasons for the low-price competition in bond underwriting are identified: 1. Institutions are focusing on "price for volume," where larger institutions dominate the market and engage in low-fee bidding to increase their underwriting scale and market ranking [2] 2. The evaluation criteria for bidding often prioritize price over service quality and risk management, encouraging underwriters to sacrifice reasonable profit margins [2] 3. Many institutions have a singular business structure, making bond underwriting a critical cash flow business, leading them to participate in low-margin bidding to maintain market share [2] Group 3: Long-term Consequences - While low-price competition may provide short-term market share, it risks long-term damage to the underwriting process, including: 1. Insufficient resource allocation for due diligence and risk assessment, potentially leading to increased bond defaults and harming investor interests [3] 2. The survival of compliant institutions is threatened, while aggressive bidders may resort to gray market practices, undermining healthy competition [3] 3. The core value of underwriters in facilitating effective capital allocation diminishes, as the process becomes a mere "channel" service [3] 4. A focus on price wars hampers innovation in product development, affecting the industry's ability to lead in areas like green bonds and ESG derivatives [3] Group 4: Recommendations for Improvement - To break the low-price competition cycle, a collaborative approach involving regulators and issuers is necessary, shifting the market focus from "who bids lower" to "who creates more value" [4] - This shift would help financial intermediaries escape the fee-centric mindset and rebuild a competitive landscape centered on quality and compliance, promoting the long-term health of the bond market [4]

Core Viewpoint - The announcement by the China Interbank Market Dealers Association regarding the low underwriting fees for bond issuance has sparked market attention and initiated a self-regulatory investigation into the practices of the involved institutions [1][3]. Group 1: Underwriting Fees and Market Reactions - The underwriting fees for the bond issuance by Guangfa Bank were reported as low as 700 RMB, raising concerns about the sustainability of such pricing in the market [1][2]. - Previous instances of low underwriting fees have been noted, including a case in September 2022 where fees ranged from 0.000046% to 0.0002%, which was also considered unusually low [2]. - The low fees have led to discussions on social media, highlighting the potential implications for the industry and the ability of firms to cover costs [1][2]. Group 2: Regulatory Response - The Dealers Association has expressed ongoing concern about the phenomenon of low-price competition in the bond underwriting sector, prompting them to issue a notification aimed at strengthening the norms for bond issuance and underwriting [3][4]. - Specific requirements were outlined for issuers and underwriters, including the need to conduct business based on market principles and to avoid practices that distort market prices [4]. - The Association emphasized the importance of maintaining investor rights and ensuring that underwriting fees do not fall below cost, as well as the need for transparency in the bidding process [4][5].

Core Viewpoint - The announcement by the China Interbank Market Dealers Association regarding the low underwriting fees for bond issuance has raised significant market concerns, prompting a self-regulatory investigation into the involved institutions [1][2]. Group 1: Low Underwriting Fees - The underwriting fees for the recent bond issuance by Guangfa Bank were alarmingly low, with some institutions, such as China Galaxy and Industrial Bank, quoting fees as low as 700 RMB [1][2]. - This is not an isolated incident; previous bond issuances have also seen similarly low fees, with rates dropping below 0.0002% in past cases, leading to market astonishment [2]. Group 2: Regulatory Response - The Dealers Association has expressed ongoing concern over the phenomenon of low-price competition in the bond underwriting sector, which includes issues like low underwriting fees and potential market price distortion [3][4]. - Specific requirements have been set forth by the Association to ensure fair practices, including the prohibition of pre-agreed bond issuance rates and the necessity for underwriters to avoid quoting below cost [4]. Group 3: Self-Regulatory Measures - The Association will implement self-regulatory management and regularly monitor the bond issuance and underwriting business, with potential disciplinary actions for violations of self-regulatory rules [5]. - Violations that breach legal or administrative regulations will be referred to relevant authorities, and such incidents will be recorded in integrity archives for public disclosure [5].