Original title: New Era Securities Ends Administrative Takeover, Says Goodbye to “Tomorrow Department” and Joins Central Enterprises
Economic Observer Network reporter Liang JiOn May 27, 2022, the China Securities Regulatory Commission notified the end of the nearly two-year administrative takeover of New Era Securities in accordance with the law.
On July 17, 2020, New Era Securities was taken over by the China Securities Regulatory Commission for a period of one year due to the concealment of the actual controller and shareholding ratio and the unbalanced corporate governance; The takeover period for New Era Securities is one year.
In September 2021, Beijing Equity Exchange listed and transferred 98.24% of the shares of New Era Securities. There were successively Western Securities and Beijing Financial Holdings Group Co., Ltd. (hereinafter referred to as “Beijing Financial Holdings”), Dongxing Securities and China Chengtong Holdings Group Co., Ltd. (hereinafter referred to as “Beijing Financial Holdings”). hereinafter referred to as “China Chengtong”) expressed its intention to acquire New Era Securities, but China Chengtong finally acquired it alone.
The China Securities Regulatory Commission stated in the circular that for more than a year, with the strong support of all relevant parties, the China Securities Regulatory Commission has adhered to the principles of marketization and the rule of law, and has strictly followed the “Securities Law”, “Regulations on Risk Disposal of Securities Companies” and other laws and regulations to guide The New Era Securities Takeover Group performs its duties in accordance with the law, regulates the company’s equity and governance structure, and maintains the company’s operational stability.
Join the central enterprise
On September 16, 2021, Beijing Equity Exchange listed for the transfer of New Era Securities shares, a total of 2.859 billion shares, accounting for 98.24% of its total share capital. The transfer base price is 13.135 billion yuan, and the transferor is its 8 shareholders.
At the end of September and the beginning of October 2021, Western Securities and Dongxing Securities successively announced that they intend to join Beijing Financial Holdings Group Co., Ltd. and China Chengtong Holdings Group Co., Ltd. respectively to transfer shares from New Era Securities.
On December 24, 2021, the Beijing Equity Exchange reported that China Chengtong was assigned the above-mentioned listed shares of New Era Securities; on March 25, 2022, the China Securities Regulatory Commission announced that it approved China Chengtong to become the major shareholder and Rongtong of New Era Securities. The actual controller of the Fund Management Co., Ltd. has no objection to the transfer. After the completion of the relevant procedures, New Era Securities became a subsidiary of China Chengtong.
On May 23, 2022, the official website of the China Securities Regulatory Commission showed that the application materials for the “Approval for the Resumption of Normal Operations of Disposal Securities Companies” submitted by New Era Securities were received on the same day.
Some investment bankers previously told the Economic Observer.com that the quality of the securities targets in the new era is not high, and its relationship with the “Tomorrow Department” also has a negative impact on the value of its licenses. However, he also said that a strong controlling shareholder will help securities companies gain advantages in resource acquisition, and the strong support from controlling shareholders and actual controllers is also an important support for securities companies to cope with future competition.
According to the financial report, New Era Securities will achieve revenue of 1.803 billion yuan and net profit of 339 million yuan in 2021.
Farewell to “Tomorrow Department”
New Era Securities was previously a financial institution under the “Tomorrow Department”. “Tomorrow Department” is the collective name given by the market to dozens of listed companies and financial institutions controlled by Xiao Jianhua. Headquartered in Beijing, Tomorrow Holding Company has built a financial industry chain covering securities, banking, insurance, trust, futures, PE, funds and other institutions through holding, equity participation and curve holding of dozens of listed companies.
On July 17, 2020, the China Banking and Insurance Regulatory Commission announced that in view of Tianan Property Insurance Co., Ltd., Huaxia Life Insurance Co., Ltd., Tianan Life Insurance Co., Ltd., Yi’an Property Insurance Co., Ltd. The takeover conditions stipulated in Article 144, New Era Trust Co., Ltd. and Xinhua Trust Co., Ltd. triggered Article 38 of the “Banking Supervision Law of the People’s Republic of China” and Article 50 of the “Administrative Measures for Trust Companies”. In order to protect the legitimate rights and interests of the parties involved in insurance activities and trust parties and safeguard the public interests, the CBIRC has decided to implement the takeover of the above-mentioned six institutions for a period of one year. On July 16, 2021, the China Banking and Insurance Regulatory Commission issued a notice to extend the takeover period of the above six institutions for one year.
In addition, when the China Securities Regulatory Commission took over New Era Securities on July 17, 2020, it also took over Guosheng Securities and Guosheng Futures in accordance with the law. Including New Era Securities, the above-mentioned nine companies were all financial institutions under the Tomorrow Department.
According to the previous report of the China Banking and Insurance Regulatory Commission, the takeover group has entrusted China Pacific Property Insurance Co., Ltd., China Life Health Industry Investment Co., Ltd., New China Life Insurance Co., Ltd., People’s Property Insurance Co., Ltd., CITIC Trust Co., Ltd., Silver International Trust Co., Ltd. has set up six trusteeship groups to respectively trust Tianan Property Insurance Co., Ltd., Huaxia Life Insurance Co., Ltd., Tianan Life Insurance Co., Ltd., Yi’an Property Insurance Co., Ltd., and New Era Trust Co., Ltd. according to the custody agreement. Company and Xinhua Trust Co., Ltd.
According to the previous notice of the China Securities Regulatory Commission, according to the regulations, the China Securities Regulatory Commission organized and established corresponding company takeover groups, and exercised the management rights of the taken over companies from the date of takeover. Co., Ltd., China Merchants Securities Co., Ltd., and Guotai Junan Futures Co., Ltd. established corresponding company custody groups, and the custody groups worked in accordance with the custody agreement under the guidance of the takeover group.
On April 10, 2022, New Era Securities announced that the company’s controlling shareholder was changed to China Chengtong, and the actual controller was changed to the State-owned Assets Supervision and Administration Commission of the State Council.
According to the data, China Chengtong, as one of the only two state-owned capital operating companies in the SASAC, is responsible for promoting the rational flow of state-owned capital and promoting the rational flow of state-owned capital through equity operation, value management, advance and retreat circulation, etc. The historical mission of optimizing the allocation; undertaking the important task of providing financial services for central enterprises assigned by the SASAC, with strong support from the SASAC; and its four main businesses of fund investment, asset management, equity management, and financial services are outstanding.Return to Sohu, see more
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