毕马威：二零二一年中国证券业调查报告

Mainland China Securities Survey 2021 Financial services kpmg.com/cn Contents 目录 01 Introduction 01 02 Market overview 06 03 04 Industry trends 32 3.1 The strategic importance of capital market reforms in the first year of the 14th Five-Year Plan 3.2 Data-driven digital transformation: Integrating fintech and business scenarios 3.3 Continually enhancing compliance and risk management 3.4 A new stage of comprehensive opening to the outside world 3.5 ESG to support sustainable development ESG Business dynamics 48 4.1 Wealth management: Accelerating transformation 4.2 Proprietary trading: Solid performance, especially in OTC derivatives 4.3 Investment banking: Deepened reform of registration-based IPO system with first-tier players outperforming 4.4 Credit business: Stock-pledge lending declines, while margin financing and securities lending bounce back to their peak 4.5 Asset management: Pivoting toward publicly offered funds 05 Conclusion 66 06 Appendices 70 Appendix 1 Financial highlights 71 Appendix 2 Sector ranking for 2020 185 Appendix 3 3 Overview of foreign invested securities company 192 Appendix 4 4 2021 rating of securities companies by the CSRC 195 2021 Appendix 5 Mainland Futures Companies 199 5 Appendix 6 Mainland Fund Management Companies 207 6 Appendix 7 Mainland Subsidiaries of Fund 217 Management Companies 7 Appendix 8 Securities companies who have set up 225 Hong Kong subsidiaries 8 Appendix 9 Foreign-funded enterprises that offer 229 private fund management business 9 1 Introduction Introduction Mainland China Securities Survey 2021 2 During the past extraordinary year, China was able to successfully combat COVID-19 and keep its economy afloat during the pandemic. Meanwhile, the country’s capital market showed strong resilience and vitality during this difficult time. As a key part of the capital market, the securities industry maintained an upward trend in 2020. With the formal implementation of the new Securities Law, the steady launch of the IPO registration system, the further opening up of foreign investment channels, and the acceleration and deepening of digital transformation, major securities companies are actively exploring the transformation of their market positioning, for the purpose of long-term development. According to the audited annual reports of 137 securities companies published by the Securities Association of China (SAC), the securities industry realised operating income of RMB 446.8 billion and net profit of RMB 154.9 billion (based on financial statements at the parent company level), representing year-on-year increases of 24 percent and 30 percent, respectively. As of 31 December 2020, the total assets of the above securities companies stood at RMB 8.9 trillion, representing a year-on-year increase of 22 percent. Their net assets amounted to RMB 2.3 trillion, a year-on-year increase of 14 percent. In terms of income composition, income from all segments grew in 2020. The proprietary trading segment generated income amounting to RMB 148.4 billion (including profits or losses arising from changes in fair values and investment income), up 5 percent from the RMB 141.8 billion recorded in 2019. This segment remained the biggest source of income for the securities industry, accounting for 33 percent of the industry’s total operating income. Driven by the strong performance of the secondary market, net income from the brokerage segment—the traditional source of income for the industry—surged by 54 percent year-on-year to RMB 129.6 billion. Meanwhile, with the steady promotion to the marketing of capital elements, the rapid implementation of the IPO registration system, and the continuous improvement of the Sci-Tech innovAtion boaRd (STAR market), the investment banking business generated net income of RMB 67.3 billion, an increase of 39 percent over the previous year. At the same time, efforts to enhance the active management capabilities of the asset management segment accelerated. In 2020, the asset under management (AUM) fell by 21 percent year-on-year to RMB 8.55 trillion as a result of the decrease in channel operation following the promulgation of the New Asset Management Regulations. Nevertheless, the asset management sector still recorded RMB 29.4 billion in net income, representing a year-onyear increase of 8 percent. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 3 Mainland China Securities Survey 2021 From a regulatory perspective, compliance and risk are still the main priorities, and are of great significance to further strengthen securities companies’ role as the “gatekeeper” of the capital market. Strengthening intermediaries’ responsibilities will pave the way for the ongoing launch of the market-wide registration system, and this strengthening of responsibilities represent a regulatory trend that will be the new normal going forward. Within this context, intermediaries in the capital markets need to balance their capabilities and responsibilities to enable the development of multilevel capital markets in China. In 2020, securities companies diversified their businesses amid the transformation of the wealth management industry. In recent years, as the demand for financial services has increased due to the appreciation of customers’ wealth, financial institutions have leveraged their own resources, deployed measures such as financial technology in an effort to transform the wealth management sector, in order to improve their service capabilities to gain an edge over their competitors. In addition, the deepening of the opening up of the financial industry has presented the securities industry with rare opportunities. Going forward, confronting all those opportunities and difficulties, securities companies should accelerate their business transformations, increase investments in talent and financial technology, and improve their internal governance structures and risk management capabilities in order to tackle the challenges arising from tightening regulation, mergers and acquisitions, and the entry of foreign companies into the market. This report is the 15th annual Mainland China Securities Survey published by KPMG China. It was prepared based on the 2020 annual reports of 137 securities companies in mainland China, which were released by SAC on its official website (www.sac.net.cn). © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 4 02 Market overview 市场回顾 7 Mainland China Securities Survey 2021 In 2020, 137 securities companies in mainland China recorded total operating income of RMB 446.8 billion, representing a year-on-year increase of 24 percent; and net profit after tax of RMB 154.9 billion, an increase of 30 percent year-on-year (Chart 1). The rise in net profits was attributable to the booming securities market. In 2020, the A-share stock markets in Shanghai and Shenzhen recorded a combined turnover of RMB 207 trillion, representing a year-on-year increase of 62 percent (Chart 2). The average brokerage commission rate decreased further in 2020, though by a smaller percentage, to 0.0263 percent1. A significant increase in trading volume and a slightly lower average commission rate resulted in remarkably higher net income for brokerage businesses, while net income from investment banking businesses increased significantly thanks to the launch of the STAR market’s registration system. The New Asset Management Regulations also stimulated the growth of actively managed AUM and boosted the net income of the asset management business. Chart 1 Total net profit of securities companies in mainland China (RMB billion) 300 244.0 250 200 150 128.9 100 50 6.5 93.4 78.4 94.9 50.0 24.6 38.9 32.9 43.0 0 -50 (3.7)(9.4)(15.0) (11.4) 123.0 112.0 154.9 119.5 62.5 Sources: Financial statements of securities companies and KPMG China analysis Chart 2 Market turnover and average brokerage commission rates 300,000 12.6 255,054 14.0 250,000 11.7 12.0 206,825 200,000 150,000 9.5 8.1 8.2 7.8 7.0 127,384 10.0 127,416 8.0 100,000 4.8 112,463 6.0 74,391 90,296 50,000 53,599 42,165 54,563 46,873 26,711 31,467 4.0 3.9 4.0 3.1 2.9 2.6 2.0 - 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total stock turnover of SSE and SZSE (RMB billion) Average brokerage commission rates (per 10,000) Sources: Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), SAC, industry research reports and KPMG China analysis 1. Source: China Securities Journal © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 8 300 250 244.0 200 150 128.9 100 50 6.5 93.4 78.4 94.9 50.0 24.6 38.9 32.9 43.0 0 -50 (3.7)(9.4()15.0)(11.4) 154.9 123.0 119.5 112.0 62.5 300,000 250,000 200,000 150,000 100,000 50,000 255,054 12.6 11.7 9.5 8.1 7.8 8.2 206,825 7.0 127,384 4.8 112,463 127,416 53,59954,56342,165 74,391 46,873 26,711 31,467 90,296 4.0 3.9 3.1 2.9 2.6 - ( ) 9 Mainland China Securities Survey 2021 Based on an analysis of core businesses’ contribution to the total operating income of domestic securities companies (Chart 3), the proportion of net income from the brokerage business rebounded 6 percentage points year-on-year to 29 percent in 2020, reversing a yearslong downward trend. This growth was largely caused by the substantial increase in trading volume on both the Shanghai and Shenzhen stock exchanges. Although the proportion of income accounted for by proprietary trading slipped by 6 percentage points year-on-year to 33 percent, it remained the largest source of income amid the bull market. Meanwhile, asset management business’s proportion of total operating income eased 1 percentage point year-on-year to 7 percent in 2020. During the year, the transformation and upgrading of the domestic economy and the implementation of the registration system stimulated the growth of financing in the capital markets. As a result, the investment banking sector outperformed. Specifically, investment banking income accounted for 15 percent of total operating income, representing a year-on-year increase of 2 percentage points. Besides, interest income and other income accounted for 16 percent, which was in line with the previous year. Chart 3 Income composition of domestic securities companies 100% 80% 60% 40% 20% 0% 48% 58% 72% 71% 57% 52% 39% 49% 42% 48% 34% 28% 16% 26% 14% 23% 13% 29% 15% 21% 6% 36% 1% 9% 3% 32% 1% 6% 6% 8% 1% 13% 5% 14% 1% 9% 12% 19% 2% 10% 15% 14% 2% 16% 17% 26% 2% 16% 11% 22% 4% 14% 12% 29% 5% 12% 9% 26% 5% 12% 22% 9% 14% 32% 10% 14% 35% 11% 15% 39% 8% 16% 33% 7% 16% Brokerage Investment banking Proprietary trading and other investments Asset management Others (including interest income from margin financing and securities lending) Sources: Financial statements of securities companies and KPMG China analysis © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 10 100% 80% 60% 40% 20% 0% 48% 58% 72% 71% 57% 52% 39% 49% 42% 48% 34% 28% 16% 26% 14% 23% 13% 29% 15% 21% 6% 36% 1% 9% 3% 32% 1% 6% 6% 8% 1% 13% 5% 14% 1% 9% 12% 19% 2% 10% 15% 14% 2% 16% 17% 26% 2% 16% 11% 22% 4% 14% 12% 29% 5% 12% 9% 26% 5% 12% 22% 9% 14% 32% 10% 14% 35% 11% 15% 39% 8% 16% 33% 7% 16% 11 Mainland China Securities Survey 2021 From 2016 to 2020, the operating income of the top 10 securities companies as a proportion of the industry’s total operating income increased from 40 percent in 2016 to 44 percent in 2018, before slightly decreasing to 42 percent in 2019 and then remaining at that level in 2020 (Chart 4). In other words, the industry’s concentration level remained stable in 2020 after peaking in 2018 and decreasing in 2019. In the past 5 years, the top 10 securities companies’ operating income as a proportion of the industry total remained firmly above 40 percent, indicating the strength of large brokers. As capital market reforms continue to deepen and securities companies continue to transform and upgrade their businesses, the level of concentration on top securities companies will increase in the long run. Chart 4 Proportion of the top 10 securities companies' operating income to the total operating income of the securities industry 45% 44% 44% 43% 42% 42% 42% 42% 41% 40% 40% 39% 38% 2016 2017 2018 2019 2020 Sources: Financial statements of securities companies and KPMG China analysis © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 12 45% 44% 43% 42% 41% 40% 39% 38% 40% 2016 42% 2017 44% 2018 42% 2019 42% 2020 13 Mainland China Securities Survey 2021 In 2020, the A-share stock markets in Shanghai and Shenzhen maintained an overall upward trend despite a correction in the first quarter due to the pandemic. The SSE Composite Index and the SZSE Component Index closed at 3,473 points and 14,471 points at year end, representing yearon-year increases of 14 percent and 39 percent, respectively. In 2020, the economy gradually recovered as the pandemic was brought under control, the capital markets were notably more active compared with the previous year. The combined turnover of SSE and SZSE stood at RMB 207 trillion in 2020, representing year-on-year growth of 62 percent. SSE contributed RMB 84 trillion in turnover, and SZSE contributed RMB 123 trillion (Chart 5), 54 percent and 68 percent higher than the previous year, respectively. Chart 5 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Market turnover and stock indices 300,000 250,000 200,000 150,000 100,000 50,000 - Turnover of SSE (RMB billion) SSE Composite Index Turnover of SZSE (RMB billion) SZSE Component Index Sources: SSE, SZSE and KPMG China analysis A-share indices Turnover (RMB billion) © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 14 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 300,000 250,000 200,000 150,000 100,000 50,000 - A 15 Mainland China Securities Survey 2021 In 2020, total fundraising through the domestic stock exchanges reached RMB 5,430 billion, increasing by 22 percent year-on-year. Of this amount, RMB 4,055.9 billion, or 75 percent, was raised through bond issuances (Chart 6), an increase of 25 percent from the previous year. Additionally, RMB 904.2 billion was raised through follow-on equity offerings, a yearon-year decrease of 6 percent. Supported by the implementation of the STAR Market’s registration system, 396 companies raised a total of approximately RMB 470 billion through IPOs on the A-share market in 2020, an 86 percent increase in the funds raised from the previous year. The number of companies that went public increased by 95 percent yearon-year, and the amount raised accounted for 9 percent of total fundraising through domestic stock exchanges. RMB billion Chart 6 6,000 5,000 4,000 3,000 2,000 1,000 - Fundraising in domestic stock exchanges IPOs Follow-on offerings Sources: CSRC and Wind Information Bond issuances © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 16 6,000 5,000 4,000 3,000 2,000 1,000 - 首次发 筹 额 增发筹 额 债 筹 额 17 Mainland China Securities Survey 2021 Funds raised from the securities market in 2020 were equivalent to around 5.3 percent of China’s gross domestic product (GDP) (Chart 7), which was 0.8 percentage points higher than in the previous year. As of 2020, the total market value of the A-share market increased 34 percent and reached approximately RMB 80 trillion. Tradable A-shares accounted for approximately RMB 64 trillion in market value, or 63.4 percent of China’s GDP in 2020, representing a year-on-year growth of 14.6 percentage points. Chart 7 A-share market capitalisation and stock exchange fundraising as a proportion of China’s GDP 70% 7.0% 60% 6.0% 50% 5.0% 40% 4.0% 30% 3.0% 20% 2.0% 10% 1.0% 0% 0.0% Proportion of tradable A-shares to China’s GDP Proportion of stock exchange fundraising to China’s GDP Sources: CSRC, National Bureau of Statistics of China (NBS) and Wind Information Proportion of tradable A-shares to China’s GDP Proportion of stock exchange fundraising to China’s GDP © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 18 70% 60% 50% 40% 30% 20% 10% 0% A GDP 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% GDP 19 Mainland China Securities Survey 2021 In 2020, trading activity increased in the buoyant stock market, and the margin financing business grew rapidly. As of the end of 2020, the total balance of margin financing in Shanghai and Shenzhen was RMB 1,482.7 billion, which has increased 50 percent from the previous year. The growth of the securities lending business was supported by various factors, such as the expanded scope of underlying products for securities lending, the relaxation of restrictions around the lending of public offering funds, optimised investor structures, and the improved market-based refinancing mechanism. As a result, the rise of the securities lending business outperformed the rise of the margin financing business by a wide margin. The total balance of securities lending soared from RMB 13.6 billion at the end of 2019 to RMB 130.6 billion at the end of 2020, representing a massive year-on-year surge of 862 percent (Chart 8). Chart 8 Quarter-end balance of margin financing and securities lending on the SSE and SZSE (2011Q1-2021Q1) Margin financing 2,500 2,000 1,500 1,000 500 - Securities lending Margin financing (RMB billion) Sources: SSE and SZSE Securities lending (RMB billion) © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 20 2,500 2,000 1,500 1,000 500 ( 21 Mainland China Securities Survey 2021 Due to the impact of COVID-19 and other factors, the transition period for the New Asset Management Regulations has been extended 1 year to 31 December 2021. During the year, the overall size of AUM of securities companies, segregated accounts of fund companies’ subsidiaries, and futures companies continued to decline (Chart 9). According to the Asset Management Association of China (AMAC), at the end of 2020, the combined AUM of securities companies stood at RMB 8,553.1 billion, representing a year-on-year decline of 21 percent. Specifically, the AUM of collective asset management plans climbed 7 percent year-on-year to RMB 2,090.4 billion; and the AUM of single (targeted) asset management plans decreased by 29 percent year-onyear to RMB 5,920.3 billion. The AUM of single (targeted) asset management plans are mainly used as channel, shrank notably as securities companies squeezed the AUM size of their channel operation to comply with the New Asset Management Regulations. In contrast, actively managed products’ AUM continued to rise from 2017 to 2020. These trends indicate that under the new regulatory framework for asset management, which requires companies to “reduce channel operation and deleverage,” securities companies have been working to enhance their active asset management capabilities so that the asset management sector can return to its original function of investment. Chart 9 20,000 Assets under management (2017-2020) AUM (RMB billion) 15,000 10,000 5,000 Source: AMAC 2017 2018 2019 Securities companies Axis Title Segregated accounts of fund management companies 2020 Segregated accounts of fund management companies’subsidiaries Futures companies Asset-backed securitisation © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 22 20,000 15,000 10,000 5,000 - 2017 2018 2019 2020 23 Mainland China Securities Survey 2021 Domestic exchange traded futures and options grew considerably in 2020. The number of options and futures products increased by 16 percent year-on-year from 75 products in 2019 to 87 products in 2020. The overall transaction volume in the futures market has shown a steady upward trend over the last several years, while total turnover dropped sharply from 2015 to 2016 before climbing steadily from 2016 to 2020 (Chart 10). Chart 10 Futures: transaction volume and turnover (2015 to 2020) 600 554 500 70 62 60 400 36 300 200 41 31 196 188 30 211 40 291 438 50 40 30 20 100 10 2015 2016 2017 2018 2019 2020 Transaction volume (100 million lot) Turnover (RMB trillion) Source: China Futures Association © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 24 600 554 62 500 438 400 41 40 36 300 31 30 291 200 211 196 188 100 2015 2016 2017 () 2018 2019 2020 25 Mainland China Securities Survey 2021 In 2020, China’s stock index futures enjoyed rapid growth (Chart 11). The transaction volume and turnover in the stock index futures market jumped by 40 percent and 62 percent, respectively, from the previous year. This rapid growth was mainly driven by a series of policies announced by the China Financial Futures Exchange (CFFEX) that relaxed futures trading arrangements as well as the flourishing stock markets. Brisk trading activity spurred demand for speculation and hedging among investors, which in turn drove the increase in transactions in the stock index futures market. Turnover (RMB billion) Transaction volume (million lot) Chart 11 Stock index futures: transaction volume and turnover (2016 to 2020) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 75 80 88,930 70 60 53 50 54,800 40 30 9 9,318 1 776 2016 10 10,507 1 876 2017 16 15,740 1 1,312 2018 4 2019 20 6 7,411 10 4,567 - 2020 Source: CFFEX © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 26 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 75 80 88,930 70 60 53 50 54,800 40 30 9 9,318 1 776 2016 10 10,507 1 876 2017 16 15,740 1 1,312 4 4,567 2018 2019 20 6 7,411 10 2020 27 Mainland China Securities Survey 2021 The regulatory framework for the over-the-counter (OTC) derivatives market is gradually improving, and the market is opening up to more participants. Within this context, investor needs and product innovation are driving the growth of securities companies’ income. As of the end of December 2020, the nominal principal of securities companies’ outstanding OTC derivatives positions stood at RMB 1,278.1 billion. Specifically, the nominal principal of outstanding OTC option positions increased by 63 percent year-on-year to RMB 757.0 billion, and that of outstanding Total Return Swap (TRS) positions surged by 229 percent year-on-year to RMB 521.1 billion (Chart 12). As of the end of 2020, the underlying products in OTC derivatives trading mainly consisted of 55 percent of stock indices and 21 percent of commodities(Chart 13). Chart 12 OTC derivatives market 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 - 142.7 223.9 2017 70.4 276.3 2018 158.4 464.3 2019 521.1 757.0 2020 Nominal principal of OTC TRS (RMB billion) Nominal principal of OTC options (RMB billion) Source: The inter-institutional quotation system of China Securities Internet System Co., Ltd. (“CSIS”) Chart 13 Underlying assets of OTC options 4,500 4,000 4,148 3,500 3,000 2,500 2,000 1,500 1,000 500 1,754 1,953 1,600 1,003 476 820 460 Stock indices Commodities Stocks Others 2019 (RMB 100 million) 2020 (RMB 100 million) Source: The inter-institutional quotation system of China Securities Internet System Co., Ltd. (“CSIS”) © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 28 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 - 142.7 223.9 2017 70.4 276.3 2018 158.4 464.3 2019 521.1 757.0 2020 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - 4,148 1,754 1,953 1,600 1,003 476 2019 2020 820 460 29 Mainland China Securities Survey 2021 Increasing investment in information technology (IT) and harnessing technological advances to promote business development have become important means for securities companies to sharpen their competitive edge. The industry-wide IT investment amounted to RMB 26.2872 billion in 2020, an increase of 21.31 percent year-on-year. Four securities companies invested more than RMB 1 billion in information technology respectively, and the smallest amount of IT investment among the top 20 securities companies with the highest IT investment was close to RMB 400 million (Chart 14). Compared with the amount of IT investment in the past two years, the top 15 securities companies in the investment ranking are more stable, while the rankings of the rest changed slightly, and there exist securities companies experiencing a rapid increase in the ranking. First-tier securities companies tend to invest more in IT, while small and medium-sized ones invest less. Based on this data, it is clear that large securities companies are leveraging the differential advantages brought by financial technology to vigorously develop technology-enabled businesses, build digital fintech platforms and seek rapid growth. Chart 14 Investment of top 20 securities companies with the highest investment in IT in 2020 25 20% 17% 18% 20 16% 15 11% 12% 11% 14% 12% 9% 10% 10 5 9% 19 7% 5% 14 7% 6% 6% 6% 7% 14 10 10 10 9 8 8 8 8 9% 6% 8 7 7 8% 7% 5% 5% 6 5 5 5 5 9% 8% 6% 4% 4 2% - 0% Sources: SAC, Financial statements of securities companies, industry research reports, and KPMG China analysis 2. Source: Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 30 25 20% 17% 18% 20 16% 15 11% 12% 11% 14% 12% 9% 9% 10% 10 19 7% 7% 14 51%4 9% 6% 6% 6% 7% 7% 8% 9% 8% 6% 5% 6% 5 10 10 10 9 8 8 8 8 8 7 7 5% 6 5 5 5 5 4 4% 2% - 0% 03 Industry trends 33 Mainland China Securities Survey 2021 3.1 The strategic importance of capital market reforms in the first year of the 14th Five-Year Plan During the years of the 13th FiveYear Plan, China’s economy grew at a slower pace and underwent structural transformation. Capital market reforms are being advanced as a national strategy, and increasing the proportion of direct financing for market entities is viewed as core to the country’s financial reforms. Recently, rising personal wealth and the growing number of high-net-worth customers in China have led to further changes in wealth management products and services. Meanwhile, a new era is dawning for the asset management business, which is now mainly driven by high-networth customers. Against this backdrop, leading securities companies are proactively exploring strategies to grow more rapidly and seek long-term development. I. The two-way opening up of the capital markets has deepened. Regulators are encouraging international investment banks to set up operations in China while also encouraging domestic securities companies to expand abroad. On the one hand, leading investment banks from other major economies have actively increased their presence in mainland China, contributing to the diversification of the market and bringing with them sophisticated business philosophies, management practices, product offerings and expertise. These new entrants have further revitalized the market. On the other hand, domestic players are exploring cross-border opportunities as part of their efforts to nurture international business as new drivers of growth for the next strategic cycle. In addition, in view of the changes in the global landscape resulting from the pandemic, securities companies are rethinking the strategic significance and focuses of their plans for global expansion. II. In accordance with regulatory guidance, securities companies have been making an effort to return to their original function and serve the real economy. In recent years, policymakers have been requiring financial institutions to proactively resolve financial risks and reduce leverage, and capital constraints have been continuously strengthened. As a result, securities companies have been developing high-risk and innovative businesses in a more regulated manner. As supply-side structural reforms are advanced in the financial sector, securities companies will play a greater role in reducing financing costs for businesses, increasing the proportion of direct financing, and channelling financing into the real economy. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Mainland China Securities Survey 2021 34 III. The concentration of the securities industry will further increase, and the integration and polarization of the entire industry will also accelerate. How to achieve significant growth through acquisitions, consolidate competitive advantages in vertical fields, and remedy specific deficiencies are all important strategic considerations for securities companies that are working to succeed and reshape the industry landscape during the 14th Five-Year Plan period. IV. Securities companies urgently need to transform their existing business models, and only those with differentiated competitive advantages will achieve success in the market. The demand for wealth management services is growing fast, and an increasing number of retail investors are making investments through institutional investors. Meanwhile, the asset management business is now being driven by high-net-worth individuals. In the context of these external changes (including the implementation of the registration-based system), securities companies that are competing ineffectively and offering homogeneous products and services as they did in the past will no longer have competitiveness. To drive the transformation of their business models, securities companies should acquire the necessary licences and qualifications, strengthen their professional capabilities, integrate different areas of business, and provide comprehensive services across the industry chain. V. Fintech and digitalisation will be the core drivers of growth for the next strategic cycle. Fintech is profoundly transforming securities companies’ business models, business architecture and operating systems. Within this context, securities companies urgently need to further integrate their business activities and technologies and comprehensively enhance their fintech capabilities based on their own differentiated business needs. Against the above background, securities companies are actively exploring strategic directions suitable for their own development to provide vivid and useful experiences for the further highquality development of the industry, capital market and real economy. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 35 • • • • • Mainland China Securities Survey 2021 36 3.2 Data-driven digital transformation: Integrating fintech and business scenarios The securities industry is rapidly transforming itself using digital technologies. Standardising data processing and exploiting data to convert it into an asset are becoming the best practices for institutions embarking on their digital transformations. In addition, more securities companies have realized that the key to digital transformation is to use digital capabilities to match financial technologies with their actual business needs so that they can leverage technologies to drive growth. It also becomes important for securities companies to understand the relationship between business scenarios and technologies. With the rapid development of ABCD3 technologies, the securities industry needs to adopt advanced big data technologies to retain, analyze, exploit and apply the huge and ever-increasing amount of data that is being generated by various transaction and management systems. Securities companies also need to ensure that they have a sound data infrastructure in place as this is the foundation for fintech-enabled digital transformation. Securities companies should leverage data to drive the digitalisation of their financial services. To this end, they can build their data infrastructure in the following ways to support their digital transformations: • Integrate data resources. Securities companies can integrate and improve existing data resources and manage newly generated data on a centralised basis. This data should be monitored, sorted out and analysed to provide comprehensive support, analysis and decision-making for financial supervision. • Develop data standards. Securities companies can formulate data standards for regulatory reporting and information disclosure and maintain consistent statistical standards to support the conversion of data into assets. • Implement data service visualisation. Securities companies can transform reusable data models, provide unique data services, ensure data quality and consistency, and accelerate the conversion of data into value. • Build data operation systems. Securities companies can build a professional team for their operational data centres to manage data properly and strengthen the centre’s capabilities. 3.ABCD stands for AI, Blockchain, Cloud computing and Data © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 37 Mainland China Securities Survey 2021 Looking ahead, we expect the following trends to emerge in the application of data and financial technology in business scenarios in the securities industry: • Fully integrated industry chain. To improve data silos and redundancies, securities companies can leverage blockchain technology to enable data sharing to the extent permitted by laws and regulations. At the same time, technicians in the industry need to redesign business models and processes to make them more customer-centric; build integrated platforms covering their front, middle and back offices; construct centralised risk management and compliance centres; and develop the transaction, investment research, risk management and operation systems that are integrated and data-driven. • Intelligent investment decisionmaking. Technologies including big data analysis and machine learning will be integrated and leveraged to build intelligent self-iterating research systems, asset evaluation tools and investment allocation systems. These technologies will help financial institutions apply data intelligently and innovate investment technologies to generate more investment return. • Digital wealth management. Securities companies will improve data connectivity, focus on client operations and leverage technologies to promote digitalisation and improve the precision and intelligence of services, channels and investment advisors. In this way, they will reconstitute business models, transform management and innovate commercial practices. • Intelligent risk management. Securities companies will build unified high-concurrency and low-latency risk management platforms to enable online or offline real-time credit investigations, anti-fraud capabilities, illegal transaction alerts and other business functions; identify potential business risks and meet risk management requirements. • Historical data services. Big data clusters will be leveraged to enable the storage, archiving, management and application of massive amounts of historical data. By exploiting and analysing historical data, securities companies can optimise and innovate their marketing and services, keep abreast of changes in capital markets and enhance their competitiveness. • Big data analysis in investment research. Securities companies can collaborate with ecosystem partners by utilising internal and external data. Technologies such as machine learning (ML) and big data analysis can be leveraged to collect and analyse information in fields such as regulatory policy, industry data, social media, alternative data, international conditions, business data, news and public opinion, and devise forecasts based on such analysis. In this way, data and technology will be combined to support securities investment research. In the future, the increasing need for digital transformation in the securities industry will lead to greater integration of big data, financial technology and business scenarios. Currently, the development of financial technology has begun to leapfrog the scope of basic repetitive tasks, focusing on the substitution of complex work that requires a certain amount of experience. Securities companies are also exploring the possibility of applying financial technology in areas that require creativity, bringing more reforms to securities industry prospectively. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 38 • • • • • • • • • • 39 Mainland China Securities Survey 2021 3.3 Continualy enhancing compliance and risk management Since the implementation of the new Securities Law in 2020, regulators have abolished, established and integrated various rules and regulations. The CSRC has successively issued the Basic Information Management Measures for Securities and Fund Management Institutions and the Sponsorship Rules for Securities Companies. In addition, the Shanghai Stock Exchange Regulations and the Shenzhen Stock Exchange Regulations have been amended. Meanwhile, regulators have improved their collaboration mechanisms and strengthened day-to-day supervision, and they are attaching equal importance to regulatory and punitive measures. At present, increased accountability measures and penalties are leading securities companies to expend greater effort to ensure integrity, due care and diligence in key aspects of their operations, such as compliance and internal controls, information security and sponsorship business. Regulators are requiring them to improve the quality of their practices and enhance their ability to serve the real economy. In this way, the primary responsibilities of securities institutions have been further consolidated. At the same time, as securities firms apply technologies such as big data and artificial intelligence, compliance and risk management practices will start to drive their business operations. Against this backdrop, we have observed the following developments and trends emerging in key areas of compliance and risk management in the securities industry: Consolidation supervision is driving differentiation. In March 2020, six leading securities firms were included in the first batch of the pilot project for consolidated supervision. Since then, regulators have clarified that they will monitor these firms’ comprehensive risk management capabilities. In the future, compliance and risk management capabilities will be key factors in evaluating the business development potential of securities firms and their qualifications and strengths. As the pilot project expands, large securities firms will face new challenges in how they enforce risk management boundaries between the parent company and the subsidiaries as they work to achieve synergies in their operations. Mainstream brokers will capitalise on their size, platforms and brand to accelerate their development and enhance their advantages. In the future, large firms that are operating in all business segments will co-exist alongside smaller boutique firms, displaying a diverse and competitive industry landscape. Companies are using a multipronged approach to enhance the effectiveness of their anti-money laundering (AML) capabilities. In the face of mounting AML challenges in recent years, regulators have accelerated efforts to optimise relevant laws and regulations; meanwhile, they have also imposed higher penalties on non-compliant institutions, with penalties of more than RMB 10 million having been imposed on several companies. In this context, while working to ensure full coverage, securities companies have integrated and amended their © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Mainland China Securities Survey 2021 40 ALM systems based on commonalities in their management practices and the individual characteristics of their business models, in accordance with changes in external laws and regulations, and special circumstances in their own business development. At the same time, they have also strengthened supervision over the business departments that are responsible for managing money laundering risks, and they have improved their AML work procedures, documentation and methods. Securities companies have also carried out intensive training with a focus on selfassessment of inherent money laundering risks and reidentification of customers in order to upskill employees and adopt a two-pronged approach to AML that attaches equal importance to system building and process management. “Smart compliance” is driving business development. Securities business is growing more complicated; risks are becoming more varied; and compliance costs are increasing. In this environment, compliance management that focuses only on identifying and managing risks is no longer sufficient for meeting securities companies’ needs against a backdrop of increasingly strict regulation and internal management. Smart compliance management tools are ushering in a new era for compliance and risk management that will allow companies to address these issues. Securities companies are using information technologies to optimise the entire compliance management process, and they have access to more effective tools and methods to capture compliance management information dynamically across the organisation. Based on these capabilities, they are able to capture risk information with a high sensitivity before an incident occurs, enable comprehensive surveillance during an incident and execute multidimensional rectification of flaws after an incident. In this way, securities companies can identify the key risk characteristics of various business and management activities in order to empower compliance management, business development, risk control and strategy implementation. Driven by “smart compliance,” securities companies are transforming compliance from performing functions to creating value. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 41 Mainland China Securities Survey 2021 42 3.4 A new stage of comprehensive opening to the outside world Since 2020, following the implementation of a series of new domestic policies, globalisation and capital market reforms have continued to advance. Foreign financial institutions have set up operations and increased their presence in China, more closely connecting the country’s financial industry with the global market. In the 2020 Government Work Report, Premier Li Keqiang highlighted the importance of reform and opening up to cope with changes in the external environment. Since the CSRC lifted its restrictions on foreign investors’ shareholding ratio in securities companies in April 2020, foreign investors has been acting fast to establish majority-held securities companies in China. To this end, Qingdao Yi Tsai Securities, Standard Chartered Securities (China), and BNP Paribas Securities (China) have submitted their applications. As of May 2021, there were nine foreign-owned securities companies, which is a testament to foreign investors’ continued interest in China’s securities market as well as confirmation that the country is continuing to open up its securities industry. China’s futures market is diversifying faster, with international products being launched continuously. At present, five international product types are available: crude oil, iron ore, PTA, Styrene Chloroprene Rubber (SCR) 20 and Low Sulfur Fuel Oil (LSFO). Regulators have also implemented measures to further open up the fund industry. In June, BlackRock was granted a public fund management licence. In August 2021, Fidelity International received approval to setup its public fund management company in China. Foreign asset managers such as Neuberger Berman, VanEck, AllianceBernstein and Schroders have also submitted applications for public fund management licences, indicating that global players are entering the Chinese market at a fast pace. In addition, four foreign financial institutions—Standard Chartered, Citibank, Deutsche Bank and BNP Paribas—have obtained fund custody licences. Foreign fund managers and custodians are expected to diversify the competitive landscape and help China’s financial markets align with those of its global peers. As capital market reforms advance, the securities industry will open up continually, presenting both opportunities and challenges for foreign investors and domestic players. Foreign financial institutions face challenges related to local players’ existing resources, business models and market penetration levels. To overcome these challenges, they need to adapt to the fact that China’s financial sector is segregated into © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 43 Mainland China Securities Survey 2021 sub-sectors operated by different financial institutions and regulators. Cross-border management of systems and data will also be a concern for them. For local players, foreign institutions’ ability to collaborate and their innovative business models, expertise, experience and global outlook will present challenges. As local and foreign institutions interact with and learn from each other, they will explore potential market needs, develop innovative business models, and promote the development of financial technology. In addition, they will contribute to moving China’s regulatory systems and risk management systems into line with global practices and help globalise China’s financial markets. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 44 45 Mainland China Securities Survey 2021 3.5 ESG to support sustainable development In recent years, as China continued to open up its capital market, more international Environmental, Social and Governance (ESG) investors increased their presence and the concept of ESG and responsible investment has been increasingly accepted. Meanwhile, the regulators are also promoting the establishment of a “green financial system” in face of the national strategic goal of hitting peak carbon dioxide emissions by 2030 and for carbon neutrality by 2060 (“30·60” Strategic Goal) , for this reason, ESG investment is the trend to follow. An increasing number of ESG indices are emerging in China. Meanwhile, ESG funds are also developing rapidly and, seeing the trend, fund management companies are actively promoting ESG funds and their AUM is expanding to new highs. The Wind statistics indicate that as of 30 June 2021, there were 146 ESG investment funds available in the market, of which 23 were newly issued during the first half of 2021. This number is a close match to the annual total recorded in 2020 (27 ESG funds were launched in 2020 ). The total AUM of the existing ESG funds reached almost RMB100 billion as at 30 June 2021, nearly doubled compared from two years ago. On the other hand, the securities industry is also paying increasing attention to the development of ESG. Through green financing, green investment, green research and environmental rights trading, securities companies are providing financial support to green enterprises in sectors such as clean energy, energy transition, energy saving and environmental protection and make their contribution to the development of an eco-friendly and environmentally responsible society. One of the businesses to show securities companies’ support to the green industries is the underwriting of green bonds, so that more institutional investments will be channelled to green bonds, and companies that need to finance green projects to pay for financing leases, hydropower project construction and green industries can meet those needs. The number of green bonds underwritten by securities companies bounced in 2021. As of 31 July 2021, 359 green bonds were underwritten by securities companies, an increase of 50 compared to the annual total recorded in 2020, and a total of RMB 346.625 billion was raised through green bond issuance. To achieve the “30·60” Strategic Goal, the securities industry has to adhere to the principle of green finance in the future and continue to support green enterprises in their IPO exercises, the issuance of green bonds and the introduction of innovative green products. The securities industry should serve environmental protection, energy savings, clean energy and other green industries in a way that encourages more social investments to be channelled into the green economy. Insisting on the principle of “long-term investment, value investment and responsible investment”, the securities industry should show its commitment to the green and sustainable development in China by creating multi-layered ESG products, promoting green investments and, most important of all, taking action. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 46 04 Business dynamics 业务动态 49 Mainland China Securities Survey 2021 4.1 Wealth management: Accelerating transformation In recent years, the development model of securities companies that rely on traditional brokerage business has been disrupted due to the rising investment demand of consumers, declining brokerage commission rates, and the increasing adoption of fintech in the securities industry. Against this backdrop, securities companies are more quickly transforming their wealth management business by adjusting their business architecture, offering wealth management platforms and systems, and thus strengthening their overall fintech capabilities. Wealth management is a customer-oriented industry that focuses on differentiated service offerings. For this reason, securities companies need to invest more in their wealth management business to ensure that their services meet the standards expected by the market. For example, securities companies need to offer wide-ranging and diversified products to meet the specific requirements of high-net-worth individuals in respect of asset allocation and services. Meanwhile, companies also need to ensure that they have high-calibre professionals on staff who can preserve and appreciate customers’ asset value and provide top-notch and high-quality service experience to customers. Nowadays, customers consider professional and convenient online services to be a key criterion when selecting a securities company. For this reason, it is important for companies to provide fund investment advisory services in addition to the fund distribution services under their current models. In this way, they can offer professional products that impress and win over customers. At present, diversified customer demands are imposing stricter requirements on companies’ overall platform construction capabilities and professional teams, and for this reason these demands pose significant difficulties to companies’ wealth management transformation. At present, from channel operation business to active management business, and from intermediaries to comprehensive and professional financial services, we can see securities companies are making progress in their wealth management transformations. In this transformation competition, first-tier securities companies and boutique securities companies are both excelling in their own ways. First-tier securities companies are leveraging their brands to serve high-net-worth individuals, and they are using their large client bases and resource advantages to seize opportunities. They are also harnessing technology to develop wealth management platforms. On the other hand, boutique securities companies are forming unique operating models that leverage their own competitive advantages. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Mainland China Securities Survey 2021 50 It is worth noting that consumers in China are also shifting their wealth management and investment demands from savings deposits towards fund investments. This shift in investment preferences is a sign of the rising demand for wealth management in the marketplace. As of the end of 2020, total net publicly offered funds stood at RMB 19.894 trillion, which represents year-on-year growth of 34.66% compared to the RMB 14.77 trillion that was recorded at the end of 2019. Currently, publicly offered funds of funds (FOF) are experiencing rapid growth, and fund management companies (FMCs) are continually increasing their supply of FOF products. As of the second quarter of 2021, 2005 publicly offered FOF products valued at RMB 171.96 billion were available in the market, which represented a significant increase compared to the 105 FOF products valued at RMB 46.54 billion that were available as of the end of 2019. According to the list of the top 100 distributers of publicly offered funds in terms of retained AUM for the second quarter of 2021 released by the AMAC, 50 securities companies accounted for RMB 1,916.8 billion or 18.63 percent of the total retained AUM. In this regard, the top three securities companies were CITIC Securities, Huatai Securities and GF Securities. Securities companies take half of the top 100 league table, which indicates remarkable achievements made in wealth management transformation. 4. Source: Asset Management Association of China 5. Source: Wind Information © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 51 Mainland China Securities Survey 2021 52 4.2 Proprietary trading: Solid performance, especialy in OTC derivatives The active trading in the securities market in 2020 presented a range of opportunities. During the year, the ChiNext indices rose sharply, and listed securities companies increased their equity and fixedincome investments. As a result, income from proprietary trading continued to increase, and it has become a key driver of securities companies’ performance. In 2020, four securities companies each generated tens of billions of renminbi in income from proprietary trading business6. The top 50 securities companies in terms of operating income recorded RMB 162.8 billion from proprietary business, which accounted for 28 percent7 of their total operating income and represented a year-on-year increase of 13 percent. Proprietary trading is the largest business segment of securities companies. Thanks to the bullish market, securities companies were able to significantly grow the size of their OTC derivatives businesses, and this sector is expected to become a new driver for proprietary business growth in the future. In 2020, the nominal principal of new OTC derivatives business of domestic securities companies amounted to RMB 4.76 trillion, representing a year-on-year increase of 159 percent. Meanwhile, the total number of OTC derivatives transactions reached 110,000, representing a year-on-year increase of 93 percent8. Compared to securities companies’ traditional lines of business, including brokerage , investment banking, investment research and proprietary trading, OTC derivatives business is more creative and can meet institutional clients’ demands for diversified investments and risk aversion, which creates value for customers and increase client loyalty while also improving securities companies’ service competitiveness. Against this backdrop, securities companies are marshalling resources and making preparations to seize the strategic opportunities offered by the OTC derivatives business. First-tier securities companies have established an obvious advantage in the highly concentrated OTC derivatives business. On 25 September 2020, the SAC issued the Administrative Measures for Over-the-Counter Securities Business, which provides rules in order to ensure securities companies’ hierarchical management of OTC options trading. First-tier securities companies have advantages in meeting the qualification threshold, and they can also benefit from economies of scale in terms of the hedging and capital costs incurred in OTC options trading. According to the SAC’s statistics, in January 2021, the nominal principal of the top five securities companies, in terms of new TRS, stood at RMB 303.4 billion, accounting for 91 percent of the total of new TRS. Meanwhile, the nominal principal of the top five securities companies in terms of new OTC options stood at RMB 217.7 billion, accounting for 78 percent9 of the total of new OTC options. 6. Income from proprietary business = investment income - investment income from associates and joint ventures + gains and losses from changes in fair value 7. Source: Wind Information 8. Source: Wind Information 9. Source: Report on the OTC Business (Issue 2 2021), Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 53 Mainland China Securities Survey 2021 OTC derivatives business provides a strategic opportunity for the proprietary trading segments of securities companies. Based on OTC derivatives, securities companies have more risk hedging tool options available for their proprietary trading, which helps them achieve investment risk neutrality and offer genuine risk hedging tools that meet the practical requirements of institutional investors. However, it must be noted that the OTC derivatives market in China is still at an early stage of development and there is room for improvement in regulatory compliance and risk control. Going forward, as detailed regulatory policies are introduced and institutional investors’ demands diversify, financial innovation will cause the OTC derivatives business to maintain rapid growth. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 54 55 Mainland China Securities Survey 2021 4.3 Investment banking: Deepened reform of registration-based IPO system with first-tier players outperforming In 2020, securities companies were more successful in serving the real economy using their investment banking arms compared with the previous year. During the year, 396 companies raised a total of RMB 47010 billion through IPOs on the A-share market. The number of IPOs recorded in 2020 was second only to that in 2017, while the amount of capital raised was the highest in almost a decade. In terms of the scale of bond underwriting, bonds valued at RMB 10.1 trillion in total were underwritten by securities companies in 2020, representing a year-on-year increase of 40.27 percent. The investment banking business of the securities industry generated net income of RMB 67.32 billion from underwriting and sponsorships, an increase of 39.27 percent compared to 2019. During the year, the top five securities companies in the investment banking business contributed 40.7 percent of the entire industry’s investment banking income. Going forward, following the full implementation of the registrationbased IPO system, the primary market activity may be further enhanced, and the Matthew effect will be further strengthened. The surge in the number of IPOs and fundraising in the A-share market in 2020 was largely a result of the continuous reform of China’s capital market system. For instance, the STAR Market and ChiNext have both implemented registration-based IPO systems to streamline the listing process and make financing more efficient, encouraging more companies to go public. In 2020, 144 companies raised a total of RMB 222.28 billion in the STAR Market, which was the first market in which the registration-based IPO system was piloted. As a result, the STAR Market is now the leading market in terms of the number of IPOs and fundraising. Besides, the reform of ChiNext and the piloting of its registration-based system also contributed to the increase in IPOs. In 2020, 109 companies raised a total of RMB 90.29 billion on ChiNext, almost three times the amount of capital raised on the board in 2019. Meanwhile, the average time from IPO application acceptance to the registration of companies on ChiNext and the STAR Market was respectively 109.9 days and 230.7 days on average, far less than the average time spent under the traditional IPO approval mechanism. 10. Source: Wind Information © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Mainland China Securities Survey 2021 56 As the US continues to tighten controls over China concept stocks, the registration-based IPO systems in the STAR Market and ChiNext provide IPO channels for companies with special equity structures and red chip companies. As a result, it is predictable that they will become a clear choice for China concept stocks to pursue secondary listings in Hong Kong SAR or mainland China. With the success of the pilot registration-based IPO systems in the STAR Market and ChiNext, the registration-based IPO system will soon be fully implemented in the A-share market. Following its implementation, securities companies will be presented with new opportunities and new requirements. The full implementation of the registrationbased IPO system will generate much more business for the investment banking arms of securities companies and promote the rapid growth of the investment banking business. However, the registration-based system also imposes higher standards on the professional services provided by the investment banking business. Once the registration-based IPO system is fully implemented, regulators will only supervise the information disclosed by the issuer, and issuance pricing will be more market-oriented. Hence, the implementation of the registration- based IPO system poses challenges to investment bankers in terms of their understanding of the market, pricing capabilities and underwriting capabilities. Moreover, the registration-based IPO system will also feature a stricter de-listing mechanism, so a de-listing will inflict terrible damage on a sponsor’s brand, image and interests. For this reason, securities companies’ investment banking business need to exercise more prudence when selecting IPO candidates to single out ones with high quality, and they should also diligently supervise and manage issuers after their IPOs. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 57 Mainland China Securities Survey 2021 58 4.4 Credit business: Stock-pledge lending declines, while margin financing and securities lending bounce back to their peak In 2020, the credit business maintained the trend that it demonstrated in 2019. Efforts to downsize business and improve credit quality gradually mitigated business risk, as evidenced by the decreasing stock pledge balance. On the other hand, the scale of margin financing and securities lending soared due to bullish Ashare market. In 2020, the risks associated with the stock pledge business repeatedly reared their head as more than 50 stock pledge disputes lodged by securities companies were publicly disclosed by listed companies. The total amount involved in the relevant litigation was disclosed to be more than RMB 10 billion. Within this context, securities companies are actively adjusting the positioning of their stock pledge business with a focus on “eliminating risks, adjusting the structure and stabilising the scale.” As a result of these efforts, the total balance of stock pledge business is decreasing each year. In 2018, 2019 and 2020, the book value of financial assets purchased under resale agreements (including stock pledge agreements) amounted to RMB 786 billion, RMB 546.19 billion and RMB 479.265 billion respectively. In recent years, securities companies have also adopted a stricter approach in recording credit impairments. Total credit impairments recorded by the 40 listed securities companies amounted to RMB 9.604 billion, RMB 19.307 billion and RMB 33.419 billion in 2018, 2019 and 2020 respectively. Due to the active trading in the Shanghai and Shenzhen market and the market-based refinancing mechanism, businesses related to margin financing and securities rebounded in scale. As of the end of 2020, the total balance of margin financing and securities lending stood at RMB 1,613.3 billion, representing year-on-year growth of 58 percent. Specifically, the margin financing balance stood at RMB 1,482.7 billion, an increase of 50 percent compared to the end of 2019; and the securities lending balance amounted to RMB 130.6 billion, an increase of 860 percent compared to the end of 2019. At present, margin financing still plays a dominant role compared to securities lending; but structurally, the securities lending balance is increasing at a much faster pace than the margin financing balance. As a result, the long-standing imbalance under which “margin financing was dominant and securities lending was inadequate” in the A-share market is on track to be relieved. The rapid growth in the scale © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 59 Mainland China Securities Survey 2021 of securities lending has been attributed to the continuous optimisation of supply and demand and various other mechanisms. Specifically, the steady growth of securities lending has been driven by the following developments: the scope of securities lending has been expanded; mutual funds, the Social Security Fund and QFII/RQFII are all participating in margin financing and securities lending business, and the participation of institutional investors is increasing; the market mechanism for refinancing is improving (e.g. the implementation of the securities refinancing system in the STAR Market and ChiNext); and securities companies are investing more into digital operating models. To cope with the general downtrend in the commission rate and develop capital-intensive businesses, securities companies are increasing the scale of their capital through private placement, allotment and issuances of convertible bonds. Since 2020, many listed securities companies have launched their own refinancing plans, and at least 25 percent to 50 percent of the capital they have raised in this manner has been channeled into margin financing and securities lending businesses. Against a backdrop in which commission rates are declining, the development of credit businesses is expected to boost the profitability and competitiveness of securities companies. Meanwhile, securities companies need to promote the balanced development of margin financing and securities lending business to address the risk management challenges brought by the new trading system, while also preserving the right of recourse for written-off bad debts in the credit business, and more closely connecting stock pledge business with the real economy. Going forward, the industry needs to study these challenges in a coordinated manner to facilitate the sound development of credit business. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 60 61 Mainland China Securities Survey 2021 4.5 Asset management: Pivoting toward publicly offered funds The New Asset Management Regulations were introduced over three years ago; and since then, securities companies’ efforts to downsize channel operation (companies that act as channels for direct funding) have borne notable results. In recent years, the AUM of actively managed products as a proportion of securities companies’ total AUM has continued to rise, and the number of products that are publicly offered has increased indicating a steady transformation to mutual funds. With the postponement of the New Asset Management Regulations, securities companies will be able to more gradually rectify their existing asset management businesses, and financial institutions will avoid having to dispose of large quantities of existing products within a short period of time. As of the end of 2020, the AUM of privately offered asset management products provided by securities companies and their subsidiaries stood at RMB 8.55 trillion, representing a year-on-year decline of RMB 2.28 trillion or 21 percent; however, the number of products offered rose from 16,968 as of the end of 2019 to 17,843 as of the end of 2020, which represented a growth rate of 5 percent11. The New Asset Management Regulations are expected to provide a certain degree of flexibility; and, within this context, a number of securities companies’ asset management subsidiaries have obtained licences from the CSRC to be established in anticipation of the upcoming changes. As of the end of 2020, a total of 19 asset management subsidiaries of securities companies had commenced business. As disclosed in securities companies’ 2020 annual reports, six securities companies—CITIC Securities, Huatai Securities Asset Management, China Merchants Securities Asset Management, Guotai Junan Assets, China International Capital Corporation and BOCI Securities—recorded respective AUMs of over RMB 500 billion, and there is the fierce competition within the sector. Banks are also fueling this competition by establishing their own wealth management subsidiaries. 11. Source: Asset Management Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Mainland China Securities Survey 2021 62 In the face of heated competition, securities companies’ asset management business needs to rectify their existing business while also promoting the transformation to new business. Publicly offered funds have become a pivotal point for securities companies to transform their wealth management businesses. In the second half of 2019, the first batch of securities companies received approval to convert collective asset management products with more than 200 investors into publicly offered funds; since then, several dozen securities companies have rectified and converted about 90 collective asset management products to publicly offered funds with a net value of RMB 150 billion into the market. In July 2020, the CSRC issued an exposure draft of the Administrative Measures for the Supervision of Managers of Publicly Offered Securities Investment Funds and proposed the “1+1+1 principle,” which states that one institution can be the controlling shareholder of one fund management company and one licensed institution that provides publicly offered funds12. After the lifting of the “1+1” principle (which stated that an institution can hold equity in no more than two fund management companies and can only be the controlling shareholder of one of them), securities companies will be able to sell publicly offered products to expand the scale of their actively managed products. On 30 December 2020, the CSRC approved the application for a licence to publicly offer securities investment fund management business that had been submitted by Guotai Junan Securities’ whollyowned subsidiary Guotai Junan Securities Asset Management. So far, 14 securities companies have obtained licences to operate publicly offered funds, including six securities companies, and eight asset management subsidiaries of securities companies. The adoption of the net valuebased approach for asset management products has presented another challenge to the asset management business of securities companies. On 30 December 2020, the Ministry of Finance and the China Banking and Insurance Regulatory Commission issued the Notice on the Further Implementation of Relevant New Accounting Standards for Financial Instruments, which clarified that the implementation date of the relevant new accounting standards for financial instruments could be postponed to 1 January 2022 for asset management products13. Currently, the asset management business is facing a critical period in which it will need to adopt the net value-based approach; and at the same time, securities companies and their asset management subsidiaries are facing various challenges with respect to product design, valuation and impairment models, risk management systems, data and information systems, etc. 12. China Securities Regulatory Commission (CSRC) 13. Ministry of Finance of the People’s Republic of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 63 05 Conclusion 结语 67 Mainland China Securities Survey 2021 In 2021, China ushers in the 14th Regulatory support is crucial for Five-Year Plan period. The year is the development of the securities also a critical one in the securities industry. On the one hand, industry’s transformation to quality regulators should allow the market development. As one of the most to play a more decisive role in important intermediaries in the resource allocation, and they capital market, securities should supervise companies in a companies are certain to benefit classified and differentiated from the reforms in capital market manner in order to give high- policies. At the same time, the quality securities companies more industry is expected to support the room for innovation. On the other quality development of the capital hand, regulators also need to market with its own quality further strengthen supervision by development. adhering to industry principles, Going forward, the securities industry should work with other players in the capital market to “form a chain of businesses” and cleaning up the market ecosystem, and punishing institutions that engage in illegal practices and disrupt the market order. “create a customer-oriented In 2021, we stand at the historical ecosystem.” Securities companies intersection of the “Two should focus on both business Centenaries”, filling with an development and regulatory expectation to the future. As the compliance and enhance their Chinese economy enters a new capabilities of investment banking stage of development, securities and wealth management by companies should be more engaging in customer value mining, proactive in identifying their investment research and precision positioning in the new marketing. Meanwhile, new development landscape while also technologies are constantly driving market development and emerging, and one of the most price discovery. Within this context, important strategic issues facing the securities industry can help industry participants is how to apply promote the transformation and technological innovation and quality development of industry effectively combine technology with structures and the real economy in business. In the current era, behind the following ways: the transformation of businesses, technologies and models, a systematic mechanism is offering strong support, representing indispensable factors for securities companies to promote governance reform within their organizations. Professional business: Securities companies should uphold the professionalism and highlight their differentiators. In addition, securities companies should accelerate the transformation from channel operation and passive management to professional and proactive management in order to enhance their core capabilities in sponsoring, pricing and underwriting and take competitive advantages in the higher-level open-up of the capital market. Steady development: In the face of a period of major changes that are rarely seen in a century, the industry as a whole should adhere to prudentiality. Securities companies should strengthen their internal control management, pay attention to risk mitigation, and hold the bottom line of compliance to lay a solid foundation for sustainable development. Intelligent innovation: The industry is embracing digital transformation, and intelligent middle platforms and ecosystem development are also high on companies’ agendas. Securities companies should focus their innovation efforts on smart investment research, smart investment advisory, smart operation and smart risk control. As integral players in the financial markets, securities companies are embarking on an innovative and transformational journey that will be filled with both opportunities and challenges, and they have shown both vitality and creativity. We are excited to see how the future will unfold for the industry, and we look forward to witnessing the high-quality development of the industry and the Chinese economy as a whole. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 68 70 06 Appendices 71 Mainland China Securities Survey 2021 Appendix 1 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in Balance of margin segregated accounts trading 1 a AJ Securities (consol. level) 1 b AJ Securities (company level) 2 a AVIC Securities Co., Ltd. (consol. level) 2 b AVIC Securities Co., Ltd. (company level) Beijing Gao Hua 3 a Securities (consol. level) Beijing Gao Hua 3 b Securities (company level) BOC International 4 a (China) Limited (consol. level) *# BOC International 4 b (China) Limited (company level) *# Bohai Huijin Securities 5 a Asset management Co., Ltd. (consol. level) Bohai Huijin Securities 5 b Asset management Co., Ltd. (company level) 6 a Bohai Securities (consol. level) 6 b Bohai Securities (company level) 7 a Caida Securities (consol. level)* 7 b Caida Securities (company level)* 8 a Caitong Securities (consol. level)* 8 b Caitong Securities (company level)* Caitong Securities 9 x Asset management Co., Ltd. * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies 2020 - 2019 - 2020 4,864 2019 4,895 2020 1,891 2019 1,824 2020 904 2019 826 36 36 4,799 4,739 1,891 1,824 904 826 - - 23,383 22,127 5,049 4,181 3,883 2,573 76 81 23,295 22,100 5,049 4,181 3,883 2,573 - - 5,942 5,157 920 561 - - 3 3 3,270 3,103 268 44 - - - - 53,960 48,312 12,413 12,361 11,679 8,432 107 107 46,127 39,804 8,720 7,664 11,679 8,432 - - 1,529 1,978 - - - - - - 1,285 1,487 - - - - - - 61,028 52,938 6,613 5,999 5,638 3,532 45 45 59,149 51,207 5,858 5,719 5,638 3,532 - - 39,136 34,214 7,929 7,397 5,741 3,894 112 111 37,539 32,799 7,718 7,261 5,741 3,894 - - 96,659 64,992 14,881 11,216 19,984 12,395 121 120 92,824 62,055 14,699 11,113 19,427 11,805 - - 2,196 1,615 - - - - © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 72 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 324 270 2,066 1,891 585 585 9,200 8,530 1,292 2019 511 365 3,633 3,766 1,319 1,319 8,573 7,823 1,742 2020 - 2019 - 2020 - 7,218 7,218 1,859 1,859 - 2019 - 6,471 6,471 1,220 1,220 - 2020 - 19 19 45 45 - 2019 - 19 19 45 45 - 944 1,236 - - - - - - 42,089 35,416 - - - - 5 5 38,542 32,404 - - - - 5 5 16,158 14,322 - - - - 80 30 14,998 13,066 - - - - 80 30 25,002 19,618 6,481 227 7,036 5,583 131 125 23,093 18,211 6,481 227 7,036 5,583 131 125 517 301 - - - - - - 73 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 1 a AJ Securities (consol. level) 1 b AJ Securities (company level) 2 a AVIC Securities Co., Ltd. (consol. level) 2 b AVIC Securities Co., Ltd. (company level) Beijing Gao Hua 3 a Securities (consol. level) Beijing Gao Hua 3 b Securities (company level) BOC International 4 a (China) Limited (consol. level)* # BOC International 4 b (China) Limited (company level) *# Bohai Huijin Securities 5 a Asset management Co., Ltd. (consol. level) Bohai Huijin Securities 5 b Asset management Co., Ltd. (company level) 6 a Bohai Securities (consol. level) 6 b Bohai Securities (company level) 7 a Caida Securities (consol. level)* 7 b Caida Securities (company level)* 8 a Caitong Securities (consol. level)* 8 b Caitong Securities (company level)* 9x Caitong Securities Asset management Co., Ltd. Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 - 2019 - 2020 - 2019 - 2020 619 619 2019 619 619 110 32 31 - 4,172 4,357 694 534 - - 4,172 4,357 1 1 2 2 - - 287 793 2 2 - - - - 13 18 8,753 8,678 976 976 2 4 8,753 8,678 - - 242 522 - 310 - - - - - 310 - - 795 731 6,656 5,659 2,648 2,232 420 95 6,656 5,659 - - 101 - 7,881 7,380 621 521 - - 7,881 7,380 6,701 5,724 91 14 24,290 15,433 7,816 6,897 91 14 23,804 14,768 - - - - - - * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 74 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 122 2019 327 2020 1,400 2019 1,100 2020 227 2019 223 2020 2019 - - 2020 1,627 2019 1,323 2020 N/A 2019 N/A 122 327 1,400 1,100 227 223 - - 1,627 1,323 656 729 715 1,618 3,634 3,634 3,806 3,397 140 - 7,580 7,031 1,770 1,559 924 1,618 3,634 3,634 3,726 3,393 - - 7,360 7,027 1,674 1,488 - 301 1,072 1,072 1,788 2,076 - 504 2,860 3,652 340 301 - 301 1,072 1,072 1,675 1,508 583 538 2,778 2,500 12,222 10,233 - - 2,747 2,580 207 178 6 5 15,006 12,738 2,868 2,705 583 538 2,778 2,500 11,844 9,730 - - 14,622 12,230 2,723 2,569 - - 1,100 1,100 89 (51) - - 1,189 1,049 143 132 - - 1,100 1,100 89 (51) 6,368 6,368 1,313 1,313 10,157 10,157 6,652 6,652 4,246 4,246 8,037 8,037 2,745 2,745 3,589 3,589 8,037 12,647 12,197 8,037 12,409 12,180 2,745 6,179 5,922 2,745 6,159 5,913 3,589 19,859 17,750 3,589 17,832 16,288 - - 200 200 992 755 - - 1,189 1,049 143 132 0 - 20,684 20,234 1,940 1,807 - - 20,446 20,217 1,721 1,615 4 4 8,928 8,671 2,118 2,060 - - 8,904 8,658 1,968 1,924 9 9 23,457 21,348 3,255 3,006 - - 21,421 19,877 2,884 2,659 - - 1,192 955 240 220 75 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 10 a Capital Securities (consol. level) 10 b Capital Securities (company level) Central China 11 a Securities (consol. level)* Central China 11 b Securities (company level)* 12 a Century Securities (consol. level) 12 b Century Securities (company level) 13 x Changjiang Financing Services Co. 14 a Changjiang Securities (consol. level)* 14 b Changjiang Securities (company level)* Changjiang Securities 15 a Asset Management Co., Ltd. (consol. level) Changjiang Securities 15 b Asset Management Co., Ltd. (company level) 16 a Chasing securities co., ltd (consol. level) 16 b Chasing securities co., ltd (company level) CICC Wealth 17 a Management (consol. level) CICC Wealth 17 b Management(company level) China Development 18 a Bank Securities (consol. level) China Development 18 b Bank Securities (company level) * denotes listed securities company # denotes foreign invested securities company Sources: 2020 - 2019 - 2020 26,198 2019 20,245 2020 4,338 2019 3,374 2020 2,599 2019 2,811 53 53 25,432 19,934 3,808 3,162 2,599 2,811 - - 52,377 43,570 8,194 6,582 7,401 6,061 86 88 48,807 39,818 7,812 6,147 7,249 5,864 - - 14,471 10,496 2,905 2,600 2,535 1,449 36 38 14,471 10,492 2,905 2,600 2,535 1,449 - - 901 815 - - - - - - 134,410 109,343 26,365 22,521 29,858 19,579 247 250 126,833 103,568 23,605 20,442 29,826 19,517 - - 3,385 3,152 - - - - - - 3,256 3,097 - - - - - - 51,663 26,445 9,282 7,442 5,561 4,615 86 82 40,658 24,393 8,211 7,071 5,561 4,615 - - 106,998 85,969 27,443 23,494 25,955 18,962 189 200 98,713 78,967 25,478 21,896 25,955 18,805 - - 44,074 37,583 71 1,270 10 10 43,966 37,486 71 1,270 - 590 - 590 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 76 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 7,939 7,356 22,593 2019 6,781 6,478 17,238 2020 - 456 2019 - 676 2020 4,233 4,233 2,089 2019 1,847 1,847 665 2020 - 2019 - 19,933 2,795 2,796 35 33,504 30,481 14,902 3,265 3,425 133 32,336 30,563 1,949 1,949 - - 2,089 785 2,063 785 2,063 - - 19 16,600 - 16,600 665 591 591 5,936 5,936 2 2 2,523 2,502 2 2 2,466 2,447 1,955 1,538 - - - - - - 1,842 1,493 - - - - - - 25,707 6,503 - - 1,324 993 86 71 19,561 6,268 - - 1,324 993 84 70 20,022 18,633 - - 8,475 3,784 - - 18,301 17,067 - - 8,475 3,784 - - 7,260 8,606 1,211 1,961 22,316 17,118 - - 7,113 8,476 1,211 1,961 22,316 17,118 - - 77 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 10 a Capital Securities (consol. level) 10 b Capital Securities (company level) Central China 11 a Securities (consol. level)* Central China 11 b Securities (company level)* 12 a Century Securities (consol. level) 12 b Century Securities (company level) 13 x Changjiang Financing Services Co. 14 a Changjiang Securities (consol. level)* 14 b Changjiang Securities (company level)* Changjiang Securities 15 a Asset Management Co., Ltd. (consol. level) Changjiang Securities 15 b Asset Management Co., Ltd. (company level) 16 a Chasing securities co., ltd (consol. level) 16 b Chasing securities co., ltd (company level) CICC Wealth 17 a Management(consol. level) CICC Wealth 17 b Management(company level) China Development 18 a Bank Securities (consol. level) China Development 18 b Bank Securities (company level) * denotes listed securities company # denotes foreign invested securities company Sources: 2020 862 2,167 2019 827 1,510 2020 - 2019 52 52 2020 2,340 2,340 2019 3,095 3,095 1,067 1,105 1,356 1,115 4,927 6,206 4,126 4,126 779 715 4,610 4,624 1,295 6,663 1,053 6,409 - - 245 100 - - 245 100 - - - - 94 196 37,559 28,320 6 55 37,547 28,456 - - 15 55 - - - - - - - - 0 0 7,647 878 6,116 3,450 711 611 - 3 6,116 3,450 271 323 133 - 28,937 20,278 907 1,256 1 - 28,937 20,278 - - 37 10 7,595 10,150 240 240 1 - 7,595 10,150 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 78 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 2,557 2019 3,176 2020 2,460 2019 650 2020 6,473 2019 3,829 2020 16 2019 15 2020 8,948 2019 4,494 2020 1,706 2019 1,777 2,557 3,176 2,460 650 6,391 3,783 - - 8,851 4,445 1,619 1,707 4,155 4,455 4,643 3,869 8,726 5,802 818 827 14,186 10,498 2,796 2,835 3,426 4,455 4,643 3,869 9,101 6,063 - - 13,744 9,932 2,427 2,478 374 - 4,000 1,584 1,138 3,417 - - 5,138 5,001 1,259 1,050 374 - 4,000 1,584 1,138 3,417 - - 5,138 5,001 370 347 - - 300 300 233 217 - - 533 517 299 278 5,001 4,188 5,530 5,530 23,554 22,434 170 188 29,253 28,152 6,286 5,983 5,001 4,188 5,530 5,530 22,588 21,624 - - 28,118 27,154 5,427 5,127 - - 2,300 2,300 696 539 - - 2,996 2,839 N/A N/A - - 2,300 2,300 696 539 - - 2,996 2,839 N/A N/A 2,124 2,124 15 5,309 3,965 5,090 3,407 193 189 10,593 7,561 2,027 1,873 15 5,309 3,965 5,199 3,506 - - 10,508 7,471 1,828 1,693 4,783 4,484 8,000 8,000 9,036 7,617 13 106 17,049 15,723 3,871 3,876 4,783 4,484 8,000 8,000 8,734 7,572 - - 16,734 15,572 3,736 3,715 - - 9,500 9,500 6,365 6,464 94 97 15,959 16,061 703 735 - - 9,500 9,500 6,417 6,509 - - 15,917 16,009 662 693 79 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading China Dragon 19 a Securities (consol. level) China Dragon 19 b Securities (company level) China Fortune 20 a Securities (consol. level) China Fortune 20 b Securities (company level) 21 a China Galaxy Securities (consol. level)* 21 b China Galaxy Securities (company level)* China International 22 a Capital Corporation (consol. level) *# China International 22 b Capital Corporation (company level) *# China Merchants 23 a Securities (consol. level)* China Merchants 23 b Securities (company level)* China Merchants 24 x Securities Asset management Co., Ltd 25 x China Post Securities China Renaissance 26 a Securities Co., Ltd.(consol. level) # China Renaissance 26 b Securities Co., Ltd.(company level) # 27 a China Securities (consol. level)* 27 b China Securities (company level)* 28 a Chinalin Securities (consol. level)* 28 b Chinalin Securities (company level)* 2020 2019 2020 2019 2020 2019 2020 2019 - - 29,135 28,486 4,696 4,213 4,302 2,866 80 81 27,586 26,941 4,521 4,109 4,302 2,866 - - 25,207 21,390 7,222 6,203 4,927 5,379 69 67 23,011 19,780 5,980 5,425 4,927 5,379 - - 445,730 315,666 76,852 60,282 82,018 58,721 491 493 383,765 277,452 59,066 49,265 77,993 54,028 - - 521,620 344,971 51,666 40,960 33,885 23,190 23 23 286,094 172,514 18,661 12,999 5,333 2,767 - - 499,727 381,772 70,271 53,040 81,754 55,225 259 258 457,109 346,531 56,455 42,844 77,872 51,319 - - 4,906 4,588 - - - - 23 19 11,594 10,868 1,650 1,360 1,426 976 - - 4,812 3,014 - - - - 1 1 4,480 2,789 - - - - - - 371,228 285,670 59,604 47,315 46,515 27,806 292 295 343,096 266,656 52,587 43,521 46,294 27,753 - - 24,796 16,510 6,099 4,705 3,234 2,081 151 143 24,431 18,083 6,099 4,705 3,234 2,081 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 80 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 3,370 2,559 5,639 5,218 93,517 79,604 259,917 140,824 175,321 150,652 2,225 1,445 2,890 2,612 140,288 122,736 2,034 1,004 2019 2,503 1,835 4,209 3,765 74,248 68,993 172,694 76,670 139,952 120,120 2,338 1,881 2,095 1,883 92,711 79,620 5,958 5,785 2020 35 35 - 5,789 5,079 1,739 1,057 - 2019 228 228 - 5,031 4,651 1,895 1,800 - 2020 6,146 6,146 - 52,130 52,130 37,212 24,589 44,615 41,926 618 4,092 253 253 44,817 42,785 9,476 9,476 2019 5,086 5,086 - 23,017 23,017 28,986 20,067 45,734 44,816 625 3,957 32,430 31,437 - 2020 59 59 120 107 33,868 33,868 7,421 7,421 75 3,280 3,225 - 2019 60 60 120 112 19,349 19,349 7,058 7,058 75 3,214 3,153 - 81 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) China Dragon 19 a Securities (consol. level) China Dragon 19 b Securities (company level) China Fortune 20 a Securities (consol. level) China Fortune 20 b Securities (company level) 21 a China Galaxy Securities (consol. level)* 21 b China Galaxy Securities (company level)* China International 22 a Capital Corporation (consol. level) *# China International 22 b Capital Corporation (company level) *# China Merchants 23 a Securities (consol. level)* China Merchants 23 b Securities (company level)* China Merchants 24 x Securities Asset management Co., Ltd 25 x China Post Securities China Renaissance 26 a Securities Co., Ltd.(consol. level) # China Renaissance 26 b Securities Co., Ltd.(company level) # 27 a China Securities (consol. level)* 27 b China Securities (company level)* 28 a Chinalin Securities (consol. level)* 28 b Chinalin Securities (company level)* * denotes listed securities company # denotes foreign invested securities company Sources: 2020 832 2019 858 2020 102 2019 1 2020 - 2019 - 2,686 2,557 102 1 - - 603 133 28 - 3,293 1,817 1,213 1,234 28 - 3,293 1,812 1,308 1,320 12,004 2,188 73,663 69,799 9,944 8,596 9,278 1,865 65,669 64,023 1,189 1,168 67,574 32,933 128,001 79,391 25,442 23,052 17,725 5,861 76,110 45,034 9,508 8,834 17,014 12,260 96,942 69,095 25,404 16,611 12,933 7,994 92,979 65,991 - - - - - - - - - - - - - - 187 165 - - 101 229 6,576 765 61 270 5,379 2,165 4,020 4,047 929 739 1,888 1,890 155 - 65,946 62,050 - 57,774 55,603 - © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 82 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2,563 3,881 6,335 6,335 8,459 8,198 325 356 15,119 14,869 1,720 1,791 2,563 3,881 6,335 6,335 8,307 8,076 - - 14,642 14,406 1,663 1,727 1,887 1,863 3,600 3,600 2,700 1,880 - 266 6,300 5,746 1,494 1,542 1,887 1,863 3,600 3,600 2,473 2,137 - - 6,073 5,737 1,329 1,215 48,286 17,660 10,137 10,137 71,117 60,759 754 1,026 82,008 71,922 11,545 9,821 48,286 17,066 10,137 10,137 68,482 58,676 - - 78,619 68,813 8,977 8,702 26,493 21,240 4,827 4,369 66,808 43,925 180 238 71,815 48,532 9,372 8,101 14,993 10,107 4,827 4,369 55,493 36,516 - - 60,320 40,885 4,456 N/A 36,217 33,099 8,697 6,699 97,040 78,349 88 80 105,825 85,128 9,230 8,725 36,217 33,099 8,697 6,699 89,591 71,491 - - 98,287 78,190 8,478 8,021 - - 1,000 1,000 2,941 3,182 - - 3,941 4,182 114 111 140 - 5,060 5,060 1,014 810 - - 6,074 5,870 857 786 - - 3,024 3,024 (294) (215) - - 2,730 2,809 205 175 - - 3,024 3,024 (402) (259) - - 2,622 2,765 203 173 42,296 17,496 7,757 7,646 59,978 48,936 336 313 68,071 56,895 9,994 9,409 42,296 17,496 7,757 7,646 57,554 47,255 - - 65,311 54,901 9,018 8,498 1,469 1,312 2,700 2,700 3,320 2,638 - - 6,020 5,338 1,290 1,324 1,469 1,312 2,700 2,700 3,158 2,571 - - 5,858 5,271 1,284 1,317 83 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 29 x Chuancai Securities 30 a Cinda Securities (consol. level) 30 b Cinda Securities (company level) 31 a CITIC Securities (consol. level)* 31 b CITIC Securities (company level)* CITIC Securities 32 a (Shandong) (consol. level) CITIC Securities 32 b (Shandong) (company level) CITIC Securities South 33 a China Company Limited (consol. level) CITIC Securities South 33 b China Company Limited (company level) Credit Suisse 34 x Securties# (formerly known as Credit Suisse Founder Securities) 35 a Daton Securities (consol. level) 35 b Daton Securities (company level) Datong Securities 36 a Brokerage (consol. level) Datong Securities 36 b Brokerage (company level) 37 a Dongguan Securities (consol. level) 37 b Dongguan Securities (company level) 38 a Donghai Securities (consol. level) 38 b Donghai Securities (company level) Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 2020 10 2019 10 2020 3,014 2019 3,759 2020 610 2019 591 2020 318 2019 259 - - 47,319 45,407 12,892 11,415 10,080 7,487 87 94 41,601 40,264 10,849 9,411 9,933 7,212 337 277 1,052,962 791,722 158,251 95,417 116,741 70,674 202 207 778,348 603,216 89,431 53,219 96,835 61,454 - - 27,660 19,774 9,555 6,721 8,666 5,457 64 64 27,660 19,701 9,555 6,721 8,666 5,457 - - 23,899 30,144 6,013 6,552 5,638 3,507 65 115 23,905 27,227 6,013 6,529 5,638 3,507 1 1 1,544 1,011 4 - - - - - 9,107 8,937 2,840 2,851 1,960 1,561 45 48 8,879 8,638 2,734 2,703 1,960 1,561 - - 8,144 7,250 2,469 2,312 1,419 1,170 46 46 8,180 7,272 2,469 2,312 1,419 1,170 - - 45,984 37,233 13,249 11,869 11,168 7,576 56 56 43,968 35,832 12,513 11,232 11,168 7,576 - - 42,323 37,340 9,792 8,333 7,496 3,950 70 72 33,286 26,332 6,278 5,589 7,492 3,940 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 84 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 1,271 8,619 7,088 440,139 285,408 4,377 4,377 4,312 4,312 2019 2,144 8,160 6,999 362,699 256,734 3,779 3,778 4,308 3,407 2020 - 581 732 - 2019 - 3,361 3,361 125 125 2020 168 4,426 3,894 49,401 56,477 - 2019 169 4,231 3,901 23,684 32,373 102 102 - 2020 - 16,636 16,440 30 30 2019 2 - 16,279 16,074 30 30 - - - - - - - - 389 593 - - - - 8 8 341 497 - - - - 8 8 1,576 1,467 193 203 - - - - 1,557 1,446 193 203 - - - - 5,062 3,556 85 129 8,810 7,115 - - 4,550 3,295 85 129 8,810 7,115 - - 14,745 14,431 141 518 108 144 44 25 11,543 7,937 - - 108 144 43 24 85 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 29 x Chuancai Securities 30 a Cinda Securities (consol. level) 30 b Cinda Securities (company level) 31 a CITIC Securities (consol. level)* 31 b CITIC Securities (company level)* CITIC Securities 32 a (Shandong) (consol. level) CITIC Securities 32 b (Shandong) (company level) CITIC Securities South 33 a China Company Limited (consol. level) CITIC Securities South 33 b China Company Limited (company level) Credit Suisse 34 x Securties# (formerly known as Credit Suisse Founder Securities) 35 a Daton Securities (consol. level) 35 b Daton Securities (company level) Datong Securities 36 a Brokerage (consol. level) Datong Securities 36 b Brokerage (company level) 37 a Dongguan Securities (consol. level) 37 b Dongguan Securities (company level) 38 a Donghai Securities (consol. level) 38 b Donghai Securities (company level) Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 - 2019 - 2020 - 2019 - 2020 98 2019 - 407 394 75 - 9,885 13,187 ( 1,852 1,952 75 - 9,223 12,710 * 8,877 9,001 105,285 71,709 177,892 133,799 * 49,977 38,125 57,127 28,291 158,487 114,538 23 22 - - - - 23 292 - - - - - - 110 172 1,039 6,682 30 2,080 110 172 1,039 6,682 # - - - - - - - - 49 137 - - 54 54 - - - - 18 18 - - 810 275 79 74 - - 810 275 - - 19 9 8,041 7,579 594 594 0 0 8,041 7,579 51 51 482 465 5,715 4,900 1,107 1,392 - - 5,428 3,505 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 86 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 38 2019 - 2020 1,000 2019 650 2020 405 2019 731 2020 - 2019 - 2020 1,405 2019 1,381 2020 398 2019 407 3,163 - 2,919 2,569 8,342 6,700 373 355 11,634 9,524 2,540 2,532 3,163 - 2,919 2,569 8,026 6,414 - - 10,945 8,884 1,984 2,083 11,942 20,137 12,927 12,117 168,785 149,508 4,171 3,825 185,883 165,450 19,012 15,908 9,570 19,587 12,927 12,117 138,778 121,441 - - 151,705 133,558 10,976 9,135 - - 2,494 2,500 4,432 3,900 - 33 6,926 6,433 N/A N/A - - 2,494 2,500 4,432 3,869 - - 6,926 6,369 N/A N/A - - 10,091 5,360 1,313 4,889 8 31 11,412 10,280 1,086 2,349 - - 10,091 5,360 1,327 4,935 - - 11,418 10,295 1,069 2,023 - - 1,089 800 382 12 - - 1,471 812 150 154 - 52 3,300 3,300 1,934 1,738 56 58 5,291 5,096 749 756 - 52 3,300 3,300 1,927 1,729 - - 5,227 5,029 687 707 783 945 730 730 948 730 2 2 1,679 1,543 1,046 1,055 793 950 730 730 977 730 - - 1,707 1,566 988 990 2,562 901 1,500 1,500 5,546 1,500 249 234 7,295 6,658 3,042 2,837 2,562 901 1,500 1,500 5,503 1,500 - - 7,003 6,392 2,830 2,638 2,549 694 1,670 1,670 7,028 6,603 279 271 8,977 8,544 1,952 2,027 2,549 694 1,670 1,670 7,123 6,769 - - 8,793 8,439 1,579 1,646 87 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 39 a Dongxing Securities (consol. level)* 39 b Dongxing Securities (company level)* Dongzheng Ronghui 40 x Securities Asset management East Asia Qianhai 41 a Securities (consol. level)# East Asia Qianhai 41 b Securities (company level)# 42 a Eastmoney Securities (consol. level) 42 b Eastmoney Securities (company level) 43 a Essence Securities (consol. level) 43 b Essence Securities (company level) Essence Securities 44 x Asset Management Co., Ltd. 45 a Everbright Securities (consol. level)*# 45 b Everbright Securities (company level)*# Everbright Securities 46 x Asset management Co., Ltd. First Capital 47 a Investment Banking Co., Ltd. (consol. level) First Capital 47 b Investment Banking Co., Ltd. (company. level) 48 a First Capital Securities (consol. level) * 48 b First Capital Securities (company level) * Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 2020 - 2019 - 2020 86,375 2019 77,544 2020 11,310 2019 7,819 2020 17,465 2019 12,772 72 70 77,905 66,048 8,277 6,333 17,313 12,579 - - 1,115 1,031 - - - - - - 3,442 3,497 543 96 - - - - 3,316 3,214 543 96 - - - - 84,024 44,739 26,987 16,176 29,691 15,918 169 148 80,217 42,752 24,766 15,178 29,691 15,918 - - 198,876 160,867 44,246 34,256 40,500 28,821 326 331 169,580 130,532 29,492 24,967 39,853 28,241 - N/A 1,416 - N/A - - N/A - - 228,736 204,090 48,424 37,972 46,816 34,119 254 266 185,138 159,874 29,224 23,808 41,097 27,425 - - 3,303 2,682 - - - - - - 698 507 - - - - - - 698 507 - - - - - - 40,636 35,574 6,088 5,744 5,763 3,925 44 44 37,061 33,058 5,706 5,590 5,763 3,925 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 88 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 18,070 14,166 1,013 722 627 12,646 12,440 34,924 34,914 368 58,519 50,194 473 184 2019 17,578 10,366 891 590 349 4,840 4,705 36,879 27,505 N/A 65,413 54,282 877 163 2020 172 70 9 - 4,452 4,303 - 2019 650 29 N/A 7,206 7,006 - 2020 24,094 24,094 1,772 1,772 25,026 21,434 17,638 17,660 - 2019 22,188 22,033 2,432 2,432 17,384 15,561 N/A 12,553 12,574 - 2020 2,265 2,164 3,704 3,704 5,179 5,093 - 2019 2,482 2,262 3,179 3,179 N/A 5,073 4,985 - 184 163 - - - - - - 15,978 15,841 - - - - 86 86 14,317 14,185 - - - - 55 55 89 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 39 a Dongxing Securities (consol. level)* 39 b Dongxing Securities (company level)* Dongzheng Ronghui 40 x Securities Asset management East Asia Qianhai 41 a Securities (consol. level)# East Asia Qianhai 41 b Securities (company level)# 42 a Eastmoney Securities (consol. level) 42 b Eastmoney Securities (company level) 43 a Essence Securities (consol. level) 43 b Essence Securities (company level) Essence Securities 44 x Asset Management Co., Ltd. 45 a Everbright Securities (consol. level)*# 45 b Everbright Securities (company level)*# Everbright Securities 46 x Asset management Co., Ltd. First Capital Investment 47 a Banking Co., Ltd. (consol. level) First Capital Investment 47 b Banking Co., Ltd. (company. level) 48 a First Capital Securities (consol. level) * 48 b First Capital Securities (company level) * Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 324 3,627 2019 221 3,107 2020 1,882 1,882 2019 161 43 2020 26,272 23,275 2019 25,849 21,395 - - - - - - - - 126 272 - - 1,409 533 8,337 1,093 9,256 - 723 469 5,012 N/A 1,039 7,136 - 95 95 2,571 2,435 2,920 1,079 - - - - - 4,758 1,428 - 4,758 1,428 787 45,322 42,492 784 44,180 41,018 N/A - N/A 997 49,027 59,037 63 40,518 44,939 - - - - - - - - - 1,545 3,288 1,436 3,055 1,063 862 - - - 904 5,615 7,023 588 4,594 6,404 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 90 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 6,647 2019 6,593 2020 2,758 2019 2,758 2020 18,390 2019 2,758 2020 37 2019 36 2020 21,185 2019 20,329 2020 N/A 2019 N/A 6,647 6,593 2,758 2,758 18,358 2,758 - - 21,116 20,006 N/A N/A - - 700 700 375 294 - - 1,075 994 85 89 51 - 1,500 1,500 (50) (95) - - 1,450 1,405 280 262 51 - 1,500 1,500 (50) (95) 8,402 8,402 12,049 12,049 4,187 8,300 4,187 8,300 3,245 10,000 3,245 10,000 6,600 16,153 6,600 16,050 7,000 33,163 7,000 32,010 7,243 7,209 7,000 7,000 - N/A 1,000 N/A 117 N/A 10,325 10,325 4,489 4,489 4,611 4,611 4,611 47,838 42,834 4,611 50,119 43,530 - - 200 200 2,054 1,876 - - 1,450 1,405 376 202 - - 24,453 13,843 1,888 1,635 - - 24,350 13,809 N/A N/A 36 38 43,199 32,823 6,293 6,365 - - 42,010 31,934 5,542 5,712 - N/A 1,117 N/A 90 N/A 746 1,574 53,195 49,019 9,240 9,031 - - 54,730 48,141 7,226 7,152 - - 2,254 2,076 171 164 - - 400 400 151 55 - - 551 455 169 134 - - 400 400 151 55 - - 551 455 169 134 - 55 4,202 3,502 9,726 5,541 508 471 14,435 9,514 3,322 3,285 - 55 4,202 3,502 9,367 5,359 - - 13,569 8,861 2,734 2,780 91 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 49 X Founder Financing Services Co., Ltd. 50 A Founder Securities (consol. level)* 50 B Founder Securities (company level)* Galaxy Jinhui Asset 51 A management Co., Ltd (consol. level) Galaxy Jinhui Asset 51 B management Co., Ltd (company level) 52 A GF Securities (consol. level)* 52 B GF Securities (company level)* GF Securities Asset 53 A management (Guangdong) (consol. Level) GF Securities Asset 53 B management (Guangdong) (company level) 54 A Golden Sun Securities (consol. level) 54 B Golden Sun Securities (company level) Golden Sun Securities 55 X Asset management Co., Ltd. 56 X Goldman Sachs Gao Hua Securities # 57 A Goldstate Securities (consol. level) 57 B Goldstate Securities (company level) Great Wall Glory 58 A Securities (consol. level) Great Wall Glory 58 b Securities (company level) Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 2020 - 2019 - 2020 3,466 2019 3,251 2020 - 2019 - 2020 - 2019 - - - 123,256 136,595 29,269 25,418 23,952 20,282 347 308 105,248 112,302 23,809 20,434 23,862 19,895 - - 1,969 1,941 - - - - - - 1,450 1,464 - - - - - - 457,464 394,391 80,470 58,366 86,153 54,787 282 283 396,920 344,697 65,695 49,881 83,472 52,133 - - 6,709 12,627 - - - - - - 6,709 6,028 - - - - - - 26,966 29,162 7,501 6,234 5,143 4,039 196 242 25,670 28,880 7,121 6,015 5,143 4,039 - - 435 499 - - - - - - 3,585 1,762 - - - - - - 18,627 18,702 4,846 3,804 2,644 1,614 52 53 16,923 17,365 4,320 3,585 2,644 1,614 - - 12,663 11,908 1,498 1,491 1,075 825 23 23 11,584 10,561 1,241 1,230 1,075 825 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 92 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 1,198 20,933 9,734 466 2019 665 29,507 11,957 342 2020 - 321 2019 - 280 2020 - 14,190 14,190 - 2019 - 24,901 24,901 - 2020 - 5,157 5,157 - 2019 - 5,042 5,042 - 334 67,946 39,995 233 81,178 52,489 - - - - - - 462 2,280 120,182 98,597 11,625 11,386 301 2,023 119,319 96,313 11,577 11,339 2,082 9,355 - - - - - - 2,082 5,495 5,141 263 - 5,562 5,365 2,435 2,999 10,040 9,548 403 - 7,279 6,650 1,960 - - - - - - - - 884 360 100 100 - - 884 360 100 100 - - - - - - - - - - - - - - 40 40 2 7 - - 40 40 2 7 86 151 3,677 2,354 - - 1,322 829 30 - 3,677 2,218 - - 93 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 49 x Founder Financing Services Co., Ltd. 50 a Founder Securities (consol. level)* 50 b Founder Securities (company level)* Galaxy Jinhui Asset 51 a management Co., Ltd (consol. level) Galaxy Jinhui Asset 51 b management Co., Ltd (company level) 52 a GF Securities (consol. level)* 52 b GF Securities (company level)* GF Securities Asset 53 a management (Guangdong) (consol. Level) GF Securities Asset 53 b management (Guangdong) (company level) Golden Sun 54 a Securities (consol. level) Golden Sun 54 b Securities (company level) Golden Sun 55 x Securities Asset management Co., Ltd. 56 x Goldman Sachs Gao Hua Securities # 57 a Goldstate Securities (consol. level) 57 b Goldstate Securities (company level) Great Wall Glory 58 a Securities (consol. level) Great Wall Glory 58 b Securities (company level) Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 - 721 9,289 2019 - 8,894 2020 - 4,836 15 2019 - 12,204 267 2020 - 7,172 6,854 2019 - 19,940 18,533 - - - - - - 7,197 20,910 6,727 20,697 5,780 2,389 3,343 778 94,486 89,750 87,251 82,680 - - - 381 - - - - - - - - 59 62 168 981 572 571 794 697 168 981 572 571 - - - - - - - - - - - 7 442 442 5 - - - - 307 568 - 307 568 - - 895 1,050 1,840 1,753 571 521 120 334 1,840 1,753 * denotes listed securities company # denotes foreign invested securities company Sources: © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 94 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 - 2019 - 2020 1,400 2019 800 2020 1,749 2019 2,248 2020 - 2019 - 2020 3,149 2019 3,048 2020 366 2019 410 10,719 2,018 8,232 8,232 31,388 30,319 737 929 40,357 39,480 8,090 8,184 10,719 2,018 8,232 8,232 31,149 30,270 - - 39,381 38,502 6,795 6,712 - - 1,000 1,000 326 329 - - 1,326 1,329 133 117 - - 35,008 14,881 35,008 14,881 1,000 7,621 7,621 1,000 328 329 7,621 90,541 83,613 7,621 77,882 73,210 4,111 - - 1,328 1,329 133 117 2,903 102,274 94,137 12,307 11,736 - 85,504 80,831 10,379 9,878 - - 1,000 1,000 5,106 4,481 - - 6,106 5,481 N/A N/A - - 1,000 1,000 5,106 4,461 - - 6,106 5,461 N/A N/A 1,398 1,855 4,695 4,695 4,927 5,049 2 2 9,624 9,746 2,512 2,576 1,398 1,855 4,695 4,695 4,945 4,977 - - 9,641 9,672 2,340 2,407 - - 400 400 18 82 - - 418 482 83 78 - - 1,094 800 2,020 727 - - 3,114 1,527 104 95 1,696 1,399 4,031 4,031 2,513 2,569 368 353 6,912 6,953 1,347 1,363 1,696 1,399 4,031 4,031 2,362 2,452 - - 6,393 6,483 1,128 1,149 204 920 3,350 3,350 585 551 100 107 4,035 4,008 664 620 204 920 3,350 3,350 741 652 - - 4,091 4,002 558 602 95 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 59 a Great Wall Securities (consol. level)* 59 b Great Wall Securities (company level)* 60 a GuoDu Securities (consol. level) 60 b GuoDu Securities (company level) 61 a Guolian Securities (consol. level) * 61 b Guolian Securities (company level) * 62 a Guorong Securities (consol. level) 2020 - 2019 - 2020 72,213 2019 59,096 2020 14,790 2019 12,789 2020 18,906 2019 11,892 121 112 67,307 55,349 12,812 11,564 18,906 11,892 - - 32,227 29,208 4,700 4,160 5,128 4,187 - - 31,098 28,375 4,297 3,808 5,095 4,162 - - 46,220 28,419 7,449 6,548 8,413 4,638 89 87 45,093 27,045 7,449 6,548 8,413 4,638 - - 15,079 14,086 4,060 3,187 1,264 1,189 62 b Guorong Securities (company level) 63 a Guosen Securities (consol. level) * 63 b Guosen Securities (company level) * 64 a Guotai Junan Securities (consol. level)* 64 b Guotai Junan Securities (company level)* Guotai Junan Securities 65 a Asset management (consol. level) Guotai Junan Securities 65 b Asset management (company level) 66 a Guoyuan Securities (consol. level)* 66 b Guoyuan Securities (company level)* 67 a Haitong Securities (consol. level)* 67 b Haitong Securities (company level)* 68 x Hengtai changcai Securities 69 76 10,825 10,845 2,091 1,761 1,264 1,189 - - 302,756 224,644 56,957 46,352 49,755 37,708 179 164 287,696 209,322 50,440 41,142 49,339 37,459 418 448 702,899 559,314 127,494 95,398 99,429 72,088 342 344 494,851 401,622 69,544 58,997 80,121 57,626 - - 7,370 7,701 - - - - - - 7,346 7,552 - - - - - - 90,557 83,169 16,803 13,819 16,273 12,310 117 140 78,407 66,550 12,627 10,041 15,676 11,391 - - 694,073 636,794 91,692 76,179 73,068 52,798 302 300 397,693 341,939 57,107 49,401 62,585 41,348 - - 722 634 - - - - * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 96 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 23,930 23,503 12,645 11,108 17,033 13,646 4,974 2019 23,424 22,129 9,720 7,790 8,223 7,214 4,948 2020 99 - - 2019 445 307 - - 2020 1,088 1,087 4,340 4,340 1,678 1,678 - 2019 1,469 1,468 4,841 4,841 - - 2020 172 172 0 0 - - 2019 46 46 0 0 - - 4,651 106,766 96,901 230,940 142,760 6,153 6,153 11,990 7,021 222,234 119,065 - 4,571 62,531 50,006 189,572 110,049 5,521 5,492 16,464 6,804 221,110 108,565 - - 578 3,763 - - 812 2,624 151 - - 24,741 24,741 72,493 60,867 22,654 22,654 13,108 11,768 - - 17,973 17,973 60,267 53,753 20,367 20,367 11,154 9,076 - - 11,763 14,218 17,637 16,538 16,239 15,984 - - 9,729 12,459 17,547 16,355 15,784 15,633 - 97 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 59 a Great Wall Securities (consol. level)* 59 b Great Wall Securities (company level)* 60 a GuoDu Securities (consol. level) 60 b GuoDu Securities (company level) 61 a Guolian Securities (consol. level) * 61 b Guolian Securities (company level) * 62 a Guorong Securities (consol. level) 62 b Guorong Securities (company level) 63 a Guosen Securities (consol. level) * 63 b Guosen Securities (company level) * 64 a Guotai Junan Securities (consol. level)* 64 b Guotai Junan Securities (company level)* Guotai Junan Securities 65 a Asset management (consol. level) Guotai Junan Securities 65 b Asset management (company level) 66 a Guoyuan Securities (consol. level)* 66 b Guoyuan Securities (company level)* 67 a Haitong Securities (consol. level)* 67 b Haitong Securities (company level)* 68 x Hengtai changcai Securities Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 1,821 3,462 411 2,382 105 3,466 234 3,625 10,108 4,015 22,457 2019 1,570 3,210 279 2,251 104 1,288 274 3,111 9,369 2,459 21,340 2020 88 88 - 1,016 429 10 10 383 331 53,621 16,761 2019 22 22 - 1,080 - 356 222 45,646 12,001 2020 17,088 16,968 4,505 4,505 8,998 8,972 1,174 1,174 35,692 35,346 101,462 84,496 2019 11,116 11,116 4,837 4,837 5,146 5,137 1,320 1,320 37,846 37,549 81,376 61,563 - - - - - 1,031 2 3,456 6,746 4,428 35,146 - 63 2,823 6,208 4,943 29,725 - 2,890 1 34,911 8,863 - 7,799 32,257 6,898 - 13,545 12,204 240,569 101,985 - 1,031 13,739 12,203 220,867 80,295 - * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 98 Short-term financing bonds payable Paid-in capital/Share capital / Reserves Minority interests Net assets Number of employees 2020 5,455 2019 2,539 2020 3,103 2019 3,103 2020 14,972 2019 13,816 2020 451 2019 433 2020 18,527 2019 17,352 2020 3,284 2019 3,208 5,455 2,539 3,103 3,103 14,752 13,653 - - 17,855 16,756 3,028 2,924 2,054 306 5,830 5,830 3,872 3,208 172 160 9,874 9,198 N/A N/A 2,054 306 5,830 5,830 3,866 3,215 - - 9,696 9,045 N/A N/A 4,781 1,309 2,378 1,902 8,216 6,165 - - 10,594 8,067 1,887 1,597 4,781 1,309 2,378 1,902 8,074 6,041 - - 10,452 7,943 1,542 1,316 630 583 1,783 1,783 2,125 2,026 174 171 4,081 3,980 1,530 1,607 630 583 1,783 1,783 2,107 1,985 - - 3,890 3,768 1,267 1,323 25,930 18,043 9,612 8,200 71,295 48,009 17 46 80,924 56,255 12,054 10,423 25,930 18,043 9,612 8,200 69,944 46,667 - - 79,556 54,867 11,464 9,846 48,724 17,424 8,908 8,908 128,445 128,594 8,885 8,592 146,238 146,094 15,198 15,233 33,844 12,159 8,908 8,908 115,411 117,436 - - 124,320 126,344 11,120 11,290 - - 2,000 2,000 3,836 3,113 - - 5,836 5,113 N/A N/A - - 2,000 2,000 3,836 3,113 - - 5,836 5,113 208 190 6,291 4,487 4,364 3,365 26,496 21,469 13 12 30,872 24,846 3,529 3,358 6,291 4,487 4,364 3,365 24,938 20,010 - - 29,301 23,375 3,122 3,002 25,719 32,207 13,064 11,502 140,384 114,589 14,678 15,028 168,126 141,119 11,282 10,837 14,955 19,977 13,064 11,502 124,381 102,185 - - 137,445 113,687 5,910 5,718 - - 200 200 322 276 - - 522 476 179 109 99 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 69 a Hengtai Securities (consol. level) * 69 b Hengtai Securities (company level) * 70 a Hongta Securities (consol. level)* 70 b Hongta Securities (company level)* 71 a Hongxin Securities (consol. level) 71 b Hongxin Securities (company level) 72 x HSBC Qianhai Securities# 73 a Huaan Securities (consol. level)* 73 b Huaan Securities (company level)* 74 a Huachuang Securities (consol. level) 74 b Huachuang Securities (company level) 75 a Huafu Securities (consol. level) 75 b Huafu Securities (company level) 76 a Huajin Securities (consol. level) 76 b Huajin Securities (company level) 77 a Huarong Securities (consol. level) 77 b Huarong Securities (company level) 78 a Huatai Securities (consol. level)* 78 b Huatai Securities (company level)* 2020 - 2019 - 2020 33,596 2019 29,527 2020 8,958 2019 7,116 2020 5,150 2019 4,026 122 144 29,141 25,511 8,012 6,656 5,150 4,026 - - 38,318 45,461 2,797 2,139 1,306 1,150 59 57 35,217 43,825 2,496 1,975 1,306 1,150 - - 9,097 11,169 3,529 2,961 1,417 1,184 40 47 8,708 10,396 3,531 2,963 1,417 1,184 1 1 1,454 1,530 14 - - - - - 58,613 50,963 11,420 9,181 8,536 6,492 128 133 48,623 42,010 8,953 7,485 8,536 6,492 - - 43,125 39,002 5,183 4,305 4,024 2,608 75 74 41,724 37,743 4,713 3,751 4,024 2,608 - - 59,423 48,336 13,399 9,118 14,119 9,735 170 166 50,167 43,196 13,399 9,118 14,119 9,735 - - 12,224 13,461 1,149 903 1,972 1,787 38 45 11,114 11,561 1,148 883 1,972 1,787 - - N/A 65,774 N/A 3,618 N/A 2,360 N/A 65 N/A 42,249 N/A 3,412 N/A 2,360 - - 716,751 562,181 103,511 67,245 102,574 69,006 243 241 524,338 422,601 80,291 55,428 100,819 68,123 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 100 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 9,873 6,989 21,866 18,847 1,828 1,907 446 19,005 15,423 18,940 17,998 20,838 10,067 2019 10,867 7,773 26,006 24,246 3,619 3,690 101 15,718 12,404 15,475 14,965 16,822 10,721 2020 205 205 63 920 920 1,254 1,233 2,342 2,342 2019 - 113 50 - 618 590 1,762 1,741 3,606 3,306 2020 1,560 1,560 335 325 3,401 3,401 1,348 1,348 743 743 2019 - 749 697 5,165 5,165 1,755 1,755 1,302 1,302 2020 - 42 42 51 51 53 27 54 54 83 78 2019 - 30 30 54 54 79 59 54 54 135 130 6,467 7,961 - - - - - - 5,246 N/A N/A 299,991 191,263 5,827 15,448 6,490 254,654 173,796 - N/A N/A 30,412 30,120 - 9,906 1,372 19,740 17,781 - N/A N/A 5,268 - - 15,641 15,757 2,013 - - N/A N/A 10,678 10,541 - 106 106 10,345 10,307 101 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 69 a Hengtai Securities (consol. level) * 69 b Hengtai Securities (company level) * 70 a Hongta Securities (consol. level)* 70 b Hongta Securities (company level)* 71 a Hongxin Securities (consol. level) 71 b Hongxin Securities (company level) 72 x HSBC Qianhai Securities# 73 a Huaan Securities (consol. level)* 73 b Huaan Securities (company level)* 74 a Huachuang Securities (consol. level) 74 b Huachuang Securities (company level) 75 a Huafu Securities (consol. level) 75 b Huafu Securities (company level) 76 a Huajin Securities (consol. level) 76 b Huajin Securities (company level) 77 a Huarong Securities (consol. level) 77 b Huarong Securities (company level) 78 a Huatai Securities (consol. level)* 78 b Huatai Securities (company level)* Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 - 1,597 - 3,216 - 43 - 1,891 3,178 74 1,728 26 2,339 2019 - 1,727 80 2,416 - 48 - 1,474 2,692 42 1,699 26 2,252 2020 - 851 1 - 4,144 47 99 99 3,687 - 2019 - 425 1 - 4,548 103 468 468 - 2020 3,533 3,550 523 523 - 10,535 10,535 10,393 10,393 18,730 18,730 2019 2,765 2,765 100 100 207 207 5,059 5,059 9,530 9,530 15,419 15,419 - - 30 249 2,539 1,021 600 N/A N/A 18,445 30,692 600 939 15,639 28,809 - N/A N/A 28,780 6,906 - 4 4 8,659 1,806 2,539 N/A N/A 108,828 91,154 1,021 9,929 9,929 71,191 61,012 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 102 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 2,098 2019 371 2020 2,605 2019 2,605 2020 6,427 2019 7,570 2020 405 2019 403 2020 9,436 2019 10,578 2020 2,674 2019 2,021 2,098 371 2,605 2,605 5,554 6,638 - - 8,159 9,243 2,122 1,534 877 8,383 3,633 3,633 10,790 9,745 280 242 14,703 13,620 1,442 1,259 877 8,383 3,633 3,633 10,336 9,573 - - 13,969 13,206 1,113 977 722 405 1,000 1,000 1,363 1,254 - - 2,363 2,254 N/A N/A 722 405 1,000 1,000 1,362 1,257 - - 2,362 2,257 1,075 1,086 - - 1,800 1,800 (614) (478) - - 1,186 1,322 202 195 2,527 2,080 3,621 3,621 10,924 9,647 338 370 14,883 13,638 3,066 2,825 2,527 2,080 3,621 3,621 10,292 9,173 - - 13,913 12,794 2,701 2,463 72 742 9,226 9,226 2,631 2,084 80 69 11,937 11,379 2,324 2,086 72 742 9,226 9,226 2,103 1,658 - - 11,329 10,884 2,140 973 - 503 3,300 3,300 9,577 10,418 714 623 13,592 14,341 3,910 3,557 - 503 3,300 3,300 5,331 6,287 - - 8,631 9,587 3,719 3,397 664 1,479 3,450 3,450 754 661 - - 4,204 4,111 1,040 1,055 664 1,479 3,450 3,450 734 656 - - 4,184 4,106 1,040 1,055 N/A - N/A - 43,951 46,425 43,720 47,059 N/A N/A 9,077 9,077 5,841 N/A 6,197 5,841 N/A 6,123 9,077 119,995 113,461 9,077 102,895 101,179 N/A N/A 3,241 - 44 N/A 12,082 N/A 1,714 - N/A 11,964 N/A 1,585 3,117 132,312 125,655 10,516 10,211 - 111,972 110,256 7,375 7,169 103 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading Huatai Securities 79 a (Shanghai) Asset management Co., Ltd. (consol. level) Huatai Securities 79 b (Shanghai) Asset management Co., Ltd. (company level) 80 x Huatai United Securities 81 a Huaxi Securities (consol. level)* 81 b Huaxi Securities (company level)* 82 x Huaying Securities 83 a Hwabao Securities (consol. level) 83 b Hwabao Securities (company level) Industrial Asset 84 a management Co., Ltd (consol. level) Industrial Asset 84 b management Co., Ltd (company. level) 85 a Industrial Securities (consol. level)* 85 b Industrial Securities (company)* J.P. Morgan Securities 86 x (China) Company Limited# 87 a Jianghai Securities (consol. level) 87 b Jianghai Securities (company level) 88 x Jinyuan President Securities Co., Ltd.# 89 a JZ Securities (consol. level) 89 b JZ Securities (company level) 90 a Kaiyuan Securities (consol. level) 90 b Kaiyuan Securities (company level) * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies 2020 2019 2020 2019 2020 2019 2020 2019 - - 27,623 41,257 - - - - - - 9,902 8,530 - - - - - - 7,632 5,539 - - - - - - 77,229 67,827 15,972 14,040 15,182 11,361 114 109 74,357 65,586 15,433 13,443 15,182 11,361 - - 1,187 1,109 - - - - - - 15,067 14,800 2,201 1,935 1,718 728 25 23 14,948 14,812 2,201 1,935 1,718 728 - - 2,686 3,580 - - - - - - 1,894 2,165 - - - - - - 181,020 170,575 33,966 25,537 31,025 20,735 143 136 143,247 130,888 23,410 17,928 28,985 17,389 1 - 659 793 - - - - - - 27,590 35,217 4,852 5,045 4,375 4,503 56 57 27,458 34,544 4,852 4,754 4,375 4,503 - N/A 1,206 N/A 0 N/A - N/A - - 6,585 8,598 1,076 1,227 567 781 6 6 6,048 8,366 873 1,044 567 781 - - 25,229 18,939 2,952 2,561 3,932 1,624 47 48 23,814 17,828 2,305 2,083 3,932 1,624 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 104 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 21,205 2019 34,844 2020 - 2019 - 2020 - 2019 - 2020 - 2019 - 6,601 2,648 23,916 22,192 657 2,883 2,846 2,100 1,436 49,624 34,763 147 10,657 10,428 843 1,633 406 3,753 3,567 5,632 2,677 16,743 16,622 639 2,367 2,386 2,204 1,170 48,565 35,680 N/A 15,351 14,733 N/A 1,874 551 2,947 2,814 - - - - - - - - - - - - - - 7,287 9,411 45 45 - - 7,287 9,411 45 45 - - - - - 998 4,260 5,203 - - - 93 - 998 4,260 5,203 - 93 - - - - - - - - - - - - - - 21,592 22,996 2,553 2,496 - - 21,592 22,996 2,553 2,496 - - - - - - - - 170 1,012 - - 170 1,012 - N/A - N/A 53 1 53 - - N/A - - 1,266 2,742 - - - - 1,265 2,684 - - - - 7,459 4,538 163 17 - - 7,459 4,538 162 6 105 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) Huatai Securities 79 a (Shanghai) Asset management Co., Ltd. (consol. level) Huatai Securities 79 b (Shanghai) Asset management Co., Ltd. (company level) 80 x Huatai United Securities 81 a Huaxi Securities (consol. level)* 81 b Huaxi Securities (company level)* 82 x Huaying Securities 83 a Hwabao Securities (consol. level) 83 b Hwabao Securities (company level) Industrial Asset 84 a management Co., Ltd (consol. level) Industrial Asset 84 b management Co., Ltd (company. level) 85 a Industrial Securities (consol. level)* 85 b Industrial Securities (company)* J.P. Morgan Securities 86 x (China) Company Limited # 87 a Jianghai Securities (consol. level) 87 b Jianghai Securities (company level) 88 x Jinyuan President Securities Co., Ltd. # 89 a JZ Securities (consol. level) 89 b JZ Securities (company level) 90 a Kaiyuan Securities (consol. level) 90 b Kaiyuan Securities (company level) * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies 2020 - 2019 - 2020 1,134 2019 89 2020 - 2019 - - 108 2,632 - 2,334 7,082 260 416 - 424 371 1,267 - 45 2,130 - 1,773 5,985 607 N/A 46 622 305 997 - 1,504 1,469 129 730 2,750 87 - - - 107 104 1,377 4,011 10 - 123 31 N/A - 409 409 - 12,673 12,673 1,627 1,627 359 359 47,039 41,255 7,469 7,469 100 100 904 904 - 7,996 7,996 163 163 667 667 54,258 43,325 10,855 10,855 N/A 1,635 1,635 - © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 106 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 - - 2,600 2,600 5,632 4,460 - - 8,232 7,060 N/A N/A - - 2,600 2,600 5,666 4,440 - - 8,266 7,040 N/A N/A - - 997 997 3,088 2,466 - - 4,085 3,463 839 730 7,957 6,572 2,625 2,625 18,697 17,025 45 44 21,367 19,694 4,033 3,749 7,957 6,572 2,625 2,625 18,248 16,744 - - 20,873 19,369 3,876 3,605 - - 800 800 238 178 - - 1,038 978 345 276 1,711 1,794 4,000 4,000 705 573 8 7 4,713 4,580 N/A N/A 1,711 1,794 4,000 4,000 718 593 - - 4,718 4,593 572 578 - - 800 800 494 417 - - 1,294 1,217 121 115 8,583 8,524 940 940 200 6,365 4,390 375 375 N/A - 800 6,697 6,697 800 6,767 6,767 1,200 3,370 800 494 417 6,697 6,697 31,042 28,152 27,736 25,781 800 (264) (86) 6,767 6,767 N/A 3,127 3,028 (19) 3,100 3,070 N/A 3,370 404 291 3,097 - - 1,294 1,217 2,611 - 40,835 34,848 37,044 32,478 - 536 714 41 9,894 9,908 - 9,795 9,837 N/A 1,181 N/A - 3,774 3,661 121 8,906 7,786 160 1,459 1,453 121 628 115 8,334 7,214 127 1,500 N/A N/A 666 200 - 3,370 3,370 263 353 - - 3,633 3,723 581 619 2,572 2,465 3,453 2,755 7,135 4,653 357 269 10,945 7,677 2,438 2,128 2,572 2,465 3,453 2,755 7,122 4,641 - - 10,576 7,396 2,236 1,932 107 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 91 x Kington Securities 92 a Lianchu Securities 92 b Lianchu Securities 93 a Minmetals Securities Brokerage (consol. level) Minmetals Securities 93 b Brokerage (company level) 94 a Minsheng Securities (consol. level) 94 b Minsheng Securities (company level) 95 x Morgan Stanley Huaxin Securities # 96 a Nanjing Securities (consol. level)* 96 b Nanjing Securities (company level)* 97 a New Times Securities (consol. level) 97 b New Times Securities (company level) Nomura Orient 98 x International Securities Co., Ltd # 99 a Northeast Securities (consol. level)* 99 b Northeast Securities (company level)* 100 x N-Securities 101 a Orient Securities (consol. level)* 101 b Orient Securities (company level)* 2020 2 2019 2 2020 133 2019 132 2020 0 2019 0 2020 - 2019 - - - 16,404 17,250 1,931 1,336 2,394 1,878 58 60 16,348 17,226 1,931 1,336 2,394 1,878 - - 22,820 21,304 1,958 1,322 3,846 2,947 39 38 23,214 21,796 1,958 1,322 3,846 2,947 - - 52,420 44,458 6,981 6,327 5,308 4,969 48 46 50,600 43,268 6,411 5,837 5,308 4,969 - - 664 599 - - - - - - 44,570 36,059 9,033 7,764 8,443 4,940 101 100 43,186 35,075 8,282 7,180 8,443 4,940 - - 17,674 23,518 4,362 4,466 4,183 3,594 63 64 16,687 21,832 4,362 4,466 4,183 3,594 1 - 3,292 2,052 14 - - - - - 68,686 68,218 13,736 11,935 12,958 9,778 102 99 64,491 64,917 12,182 10,598 12,958 9,778 40 40 703 2,611 288 305 - - - - 291,117 262,971 48,384 29,750 21,172 13,214 177 168 228,615 219,895 22,343 15,329 20,945 12,925 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 108 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 - 4,702 2019 - 5,224 2020 - - 2019 - - 2020 - 3,680 2019 - 4,277 2020 - 52 2019 - 136 3,017 3,971 3,867 29,620 24,940 5,054 4,527 3,896 3,480 701 27,041 23,092 2 72,857 52,117 3,758 2,942 2,941 25,493 20,813 2,246 1,586 10,025 8,903 300 28,161 25,181 1,629 67,510 46,187 - 1 6,244 6,244 - 7,194 7,194 3,680 9,156 9,156 13,001 13,001 62,646 62,646 4,277 11,493 11,493 12,579 12,579 114 114 64,896 64,896 52 59 59 161 161 57 1 10,936 10,868 136 70 70 146 146 69 1 10,833 10,797 109 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 91 x Kington Securities 92 a Lianchu Securities 92 b Lianchu Securities Minmetals Securities 93 a Brokerage (consol. level) Minmetals Securities 93 b Brokerage (company level) 94 a Minsheng Securities (consol. level) 94 b Minsheng Securities (company level) 95 x Morgan Stanley Huaxin Securities # 96 a Nanjing Securities (consol. level)* 96 b Nanjing Securities (company level)* 97 a New Times Securities (consol. level) 97 b New Times Securities (company level) Nomura Orient 98 x International Securities Co., Ltd # 99 a Northeast Securities (consol. level)* 99 b Northeast Securities (company level)* 100 x N-Securities 101 a Orient Securities (consol. level)* 101 b Orient Securities (company level)* Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 - 81 1,700 2019 - 50 1,700 2020 - 305 305 2019 - 155 155 2020 - 3,107 3,107 2019 - 1,792 1,792 - - - - 790 - 500 4 4,967 - 680 1,222 156 2,135 500 9 4,896 - 477 1,175 2,135 1,381 1,381 2 2 88 - 1,519 1,245 4 4 267 7 1,179 8,378 8,378 7,660 7,660 - 12,343 12,343 4,235 4,235 1,554 1,554 - - 9 - - - 760 3,862 5,771 18,359 711 3,767 4,454 16,052 396 396 15,081 12,764 6 3 15,274 13,808 5,693 5,693 62,845 56,346 8,572 8,572 67,949 62,122 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 110 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 - 2019 - 2020 135 2019 135 2020 (3) 2019 (4) 2020 - 2019 - 2020 132 2019 131 2020 10 2019 10 869 1,557 2,573 2,573 3,102 3,120 - - 5,675 5,693 1,615 1,332 869 1,557 2,573 2,573 3,086 3,114 - - 5,659 5,687 1,595 1,310 209 640 9,798 7,292 982 772 - - 10,779 8,064 1,446 1,177 325 1,137 9,798 7,292 971 769 - - 10,768 8,061 1,428 1,162 731 25 11,456 9,619 2,789 1,687 21 19 14,266 11,325 2,543 2,446 731 25 11,456 9,619 2,439 1,537 - - 13,895 11,156 2,338 2,250 - - 1,020 1,020 (476) (478) - - 544 542 153 165 1,629 1,660 3,686 3,299 12,100 7,793 118 113 15,904 11,205 2,001 1,868 1,629 1,660 3,686 3,299 11,888 7,628 - - 15,575 10,927 1,794 1,670 16 178 2,910 2,910 6,632 7,024 610 667 10,152 10,601 N/A N/A 16 178 2,910 2,910 6,533 6,655 - - 9,443 9,565 1,338 1,412 - - 2,000 2,000 (126) (54) - - 1,874 1,946 160 105 3,182 5,093 2,340 2,340 14,329 13,244 744 566 17,413 16,150 3,351 3,405 3,182 5,093 2,340 2,340 13,370 12,279 - - 15,710 14,619 2,799 2,898 - - 500 500 (4,076) (4,016) - - (3,576) (3,516) 324 362 16,255 16,113 6,994 6,994 53,209 46,972 28 46 60,231 54,012 6,339 5,772 16,255 14,989 6,994 6,994 48,670 43,593 - - 55,664 50,587 4,409 4,014 111 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 102 x Orient Securities Asset management Co., Ltd. Orient Securities 103 x Investment Banking Co.,Ltd 104 a Pacific Securities (consol. level)* 104 b Pacific Securities (company level)* 105 a Ping'an Securities (consol. level) 105 b Ping'an Securities (company level) 106 a Sealand Securities (consol. level)* 106 b Sealand Securities (company level)* Shanghai Haitong 107 x Securities Asset management Co., Ltd. 108 a Shanghai Securities (consol. level) 108 b Shanghai Securities (company level) 109 a Shanxi Securities (consol. level)* 109 b Shanxi Securities (company level)* Shengang Securities 110 a Company Limited (consol. level)# Shengang Securities 110 b Company Limited (company level)# # # 111 x Shenwan Hongyuan Financing Services Co. 112 a Shenwan Hongyuan Securities (consol. level) Shenwan Hongyuan 112 b Securities (company level) 113 x Shenwan Hongyuan Securities (Western) 2020 - 2019 - 2020 4,318 2019 3,161 2020 - 2019 - 2020 - 2019 - - - 2,599 1,999 - 80 - - - - 22,659 30,728 3,968 4,044 2,528 2,250 80 86 22,692 30,624 3,968 4,044 2,528 2,250 - - 199,283 138,991 49,123 33,502 45,079 24,447 55 44 187,992 132,880 42,516 30,260 45,054 24,435 - - 72,554 66,308 10,692 9,048 7,438 5,341 97 128 64,414 61,503 8,496 7,523 7,438 5,341 - - 8,182 7,610 - - - - - - 44,604 33,535 11,708 9,630 7,620 5,155 76 76 37,991 29,380 8,923 7,950 7,620 5,155 - - 62,452 55,696 10,753 8,460 7,238 5,468 126 128 56,235 49,989 6,938 5,722 7,023 5,186 - - 9,535 9,475 335 472 - - 4 4 9,533 9,475 335 472 - - - - 2,720 1,910 - - - - - - 453,733 353,506 70,874 58,803 74,212 53,048 309 311 397,824 313,540 53,747 46,496 66,336 47,977 46 48 14,780 13,594 4,586 3,419 5,434 4,279 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 112 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 1,282 946 8,975 8,656 36,342 34,530 19,141 15,670 4,163 5,247 4,495 22,547 19,474 6,133 5,931 1,102 151,108 134,462 749 2019 910 679 14,293 13,920 25,523 23,682 11,582 9,279 5,276 5,958 4,673 22,266 20,326 4,202 4,202 874 105,417 96,063 2,057 2020 - 87 73 188 867 38 50 34 1,703 312 - 2019 - 18 - 393 915 14,738 14,666 33 959 369 - 2020 - 196 196 28,101 28,101 18,049 18,049 10,938 10,938 1,693 1,693 50 57,283 56,972 - 2019 - 648 648 23,033 23,033 11,797 11,797 6,423 6,423 1,166 1,152 50 44,029 43,310 - 2020 - 72 72 16 16 75 75 581 581 218 180 9,062 9,062 - 2019 - 63 63 10 10 75 75 322 322 239 185 9,435 9,435 - 113 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 102 x Orient Securities Asset management Co., Ltd. Orient Securities 103 x Investment Banking Co.,Ltd 104 a Pacific Securities (consol. level)* 104 b Pacific Securities (company level)* 105 a Ping'an Securities (consol. level) 105 b Ping'an Securities (company level) 106 a Sealand Securities (consol. level)* 106 b Sealand Securities (company level)* Shanghai Haitong 107 x Securities Asset management Co., Ltd. 108 a Shanghai Securities (consol. level) 108 b Shanghai Securities (company level) 109 a Shanxi Securities (consol. level)* 109 b Shanxi Securities (company level)* Shengang Securities 110 a Company Limited (consol. level)# Shengang Securities 110 b Company Limited (company level)# # # 111 x Shenwan Hongyuan Financing Services Co. 112 a Shenwan Hongyuan Securities (consol. level) Shenwan Hongyuan 112 b Securities (company level) 113 x Shenwan Hongyuan Securities (Western) 2020 - 2019 - 2020 - 2019 - 2020 - 2019 - - - - - - - 376 890 91 2,567 256 1,579 448 1,124 105 2,267 239 1,579 2 4,158 4,158 3,930 1,324 77 75 9,040 9,029 1,225 508 1,516 1,516 36,976 36,671 7,878 7,878 6,672 6,672 26,751 26,506 13,007 13,007 - - - - 3,060 3,062 587 295 5,199 587 422 4,192 23 - 5,684 5,103 - - 5,684 5,103 751 2,152 7,879 6,436 731 2,134 7,646 6,246 - - 82 151 - - 200 - 82 151 - - - - - - - - 1,556 1,228 5,551 474 101,808 72,509 14,012 - 13,159 - 4,316 - 188 98,190 71,764 - - - * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 114 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 - 2019 - 2020 300 2019 300 2020 2,225 2019 1,754 2020 - 2019 - 2020 2,525 2019 2,054 2020 N/A 2019 N/A - - 800 800 751 672 - - 1,551 1,472 562 495 1,633 1,433 6,816 6,816 2,788 3,529 54 98 9,658 10,443 1,711 1,818 1,633 1,433 6,816 6,816 2,860 3,532 - - 9,677 10,348 1,688 1,789 15,104 4,611 13,800 13,800 19,701 17,536 305 305 33,806 31,641 3,690 3,611 15,104 4,611 13,800 13,800 19,012 16,937 - - 32,812 30,737 3,297 3,420 3,977 701 5,445 4,216 13,035 9,794 556 501 19,035 14,511 3,803 2,576 3,977 701 5,445 4,216 12,397 9,256 - - 17,842 13,472 3,295 2,055 - - 2,200 2,200 2,154 1,649 - - 4,354 3,849 167 161 3,108 2,131 2,610 2,610 4,892 4,651 - - 7,502 7,261 1,506 1,508 3,108 2,131 2,610 2,610 4,901 4,664 - - 7,511 7,274 1,327 1,332 5,520 4,323 3,590 2,829 13,316 9,826 546 561 17,451 13,216 2,637 2,517 5,344 4,323 3,590 2,829 13,427 9,715 - - 17,017 12,544 1,895 1,773 19 89 4,315 4,315 92 (239) - - 4,407 4,076 790 752 19 89 4,315 4,315 90 (239) - - 4,405 4,076 788 752 - - 1,000 1,000 817 506 - - 1,817 1,506 553 414 40,505 17,065 47,000 47,000 34,152 28,805 1,581 1,574 82,732 77,379 11,031 12,373 40,504 17,065 47,000 47,000 29,386 23,434 - - 76,386 70,434 8,202 9,547 - - 4,700 4,700 1,709 2,562 - - 6,409 7,262 740 762 115 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 114 a Sinolink Securities (consol. level)* 114 b Sinolink Securities (company level)* 115 a Soochow Securities (consol. level)* 115 b Soochow Securities (company level)* 116 a Southwest Securities (consol. level)* 116 b Southwest Securities (company level)* 117 a Tebon Securities (consol. level) 117 b Tebon Securities (company level) 118 x Tebon Securities Management Asset 119 a TF Securities (consol. level)* 119 b TF Securities (company level)* Tianfeng (Shanghai ) 120 x Securities Asset management Co., Ltd 121 a UBS Securities (consol. level) # 121 b UBS Securities (company level) # 122 a Wanhe Securities 122 b Wanhe Securities 123 a Wanlian Securities (consol. level) 123 b Wanlian Securities (company level) 124 a Western Securities (consol. level)* 124 b Western Securities (company level)* 2020 - 2019 - 2020 67,630 2019 50,151 2020 13,180 2019 11,461 2020 14,815 2019 9,178 68 66 63,475 46,918 11,112 9,938 14,527 8,880 - - 105,475 96,235 19,972 14,885 18,050 11,604 130 149 93,553 82,964 15,112 12,931 17,774 11,604 - - 79,188 65,851 10,421 9,789 12,002 10,578 86 95 75,121 62,136 9,973 9,288 11,926 10,286 - - 20,223 14,862 3,131 2,507 2,218 1,766 25 27 17,487 13,400 2,244 2,108 2,218 1,766 - N/A 1,008 N/A - N/A - N/A - - 81,405 59,920 8,915 5,436 5,617 6,068 106 103 68,010 49,044 5,501 3,975 5,579 6,068 - N/A 543 N/A - N/A - N/A - - 7,101 4,961 2,006 1,488 - - 4 4 4,493 3,592 828 935 - - - - 17,593 15,134 1,453 1,434 1,856 1,192 50 52 17,587 15,119 1,453 1,434 1,856 1,192 - - 44,327 35,389 7,194 5,838 5,678 3,938 65 66 39,272 34,977 7,201 5,838 5,678 3,938 - - 63,863 48,598 10,675 9,661 6,437 4,593 102 107 60,493 44,692 9,373 7,739 6,437 4,593 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 116 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 18,874 20,690 34,123 27,343 26,861 22,795 10,411 7,656 900 27,805 25,127 201 1,479 1,479 11,830 11,634 11,689 6,792 27,955 26,659 2019 13,474 15,591 37,143 27,484 17,667 14,631 6,627 4,971 N/A 23,141 20,720 N/A 1,432 1,432 9,755 9,547 5,911 5,295 23,635 22,531 2020 170 153 224 20 105 66 98 98 2019 153 153 142 N/A 105 N/A 66 10 10 496 496 2020 1,019 1,019 6,265 6,272 9,107 9,107 1,468 737 213 213 12,237 12,237 574 574 2019 796 796 5,796 5,784 11,384 11,384 N/A 980 980 N/A 342 342 11,900 11,900 796 796 2020 2,689 2,412 3,843 3,804 3,425 3,425 55 55 3,279 238 41 41 30 30 121 119 2019 2,623 2,359 4,372 4,287 3,318 3,318 57 57 N/A 3,839 259 N/A 42 42 30 30 100 98 117 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued 114 a Sinolink Securities (consol. level)* 114 b Sinolink Securities (company level)* 115 a Soochow Securities (consol. level)* 115 b Soochow Securities (company level)* 116 a Southwest Securities (consol. level)* 116 b Southwest Securities (company level)* 117 a Tebon Securities (consol. level) 117 b Tebon Securities (company level) 118 x Tebon Securities Asset Management 119 a TF Securities (consol. level)* 119 b TF Securities (company level)* Tianfeng (Shanghai ) 120 x Securities Asset management Co., Ltd 121 a UBS Securities (consol. level) # 121 b UBS Securities (company level) # 122 a Wanhe Securities 122 b Wanhe Securities 123 a Wanlian Securities (consol. level) 123 b Wanlian Securities (company level) 124 a Western Securities (consol. level)* 124 b Western Securities (company level)* 2020 572 2,086 1,538 8,476 2,241 6,551 2,835 4,521 7,921 2019 575 2,081 1,179 7,522 2,013 5,960 1,735 N/A 645 3,328 2020 2,082 1,924 1,982 50 596 109 32 5 2019 2,263 2,143 5,614 16 796 39 N/A 0 0 2020 6,926 6,674 27,900 26,830 15,127 13,805 1,383 1,383 26,191 26,153 2019 4,402 4,155 28,602 28,240 15,460 14,052 1,330 1,330 N/A 18,020 18,001 - N/A - N/A - N/A 242 200 169 697 36 1,496 242 200 109 357 32 1,296 67 67 10 3,343 638 893 19 584 335 1,071 50 1,015 1,015 4,382 4,382 4,032 4,032 3,579 3,579 2,299 2,299 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 118 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 8,020 2019 3,332 2020 3,024 2019 3,024 2020 19,441 2019 17,698 2020 75 2019 66 2020 22,540 2019 20,788 2020 3,545 2019 2,900 8,020 3,332 3,024 3,024 19,064 17,382 - - 22,088 20,406 3,198 3,258 8,401 4,894 3,881 3,000 23,999 17,956 330 300 28,210 21,256 3,722 3,612 8,401 4,894 3,881 3,000 23,466 17,526 - - 27,347 20,526 3,136 3,165 3,773 1,310 6,645 5,645 18,498 13,949 (64) (36) 25,079 19,558 2,346 2,357 3,773 1,310 6,645 5,645 17,922 13,679 - - 24,567 19,324 2,080 2,102 446 401 3,967 3,967 3,870 3,776 348 372 8,185 8,115 1,438 1,422 446 401 3,967 3,967 3,869 3,822 - - 7,836 7,789 1,118 1,101 - N/A 1,000 N/A 5 N/A - N/A 1,005 N/A 158 N/A 8,132 4,102 6,666 5,180 10,794 6,943 4,783 5,384 22,243 17,507 3,208 3,242 8,132 4,102 6,666 5,180 10,150 6,170 - - 16,816 11,350 2,826 2,879 - N/A 500 N/A 13 N/A - N/A 513 N/A 185 N/A - - 1,490 1,490 528 466 - - 2,018 1,956 386 394 - - 1,490 1,490 503 450 - - 1,993 1,940 361 371 1,428 2,173 2,273 2,273 3,099 3,038 - - 5,372 5,311 N/A N/A 1,428 2,173 2,273 2,273 3,103 3,034 - - 5,376 5,307 966 859 2,838 361 5,954 5,954 5,310 4,995 - - 11,264 10,949 1,752 1,631 2,838 361 5,954 5,954 5,277 4,990 - - 11,232 10,944 N/A N/A 3,012 - 4,470 3,502 21,547 14,157 92 78 26,108 17,737 2,775 2,749 3,012 - 4,470 3,502 21,699 14,320 - - 26,168 17,822 2,410 2,375 119 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 125 a Xiangcai Securities (consol. level) 125 b Xiangcai Securities (company level) 126 a Yingda Securities (consol. level) 126 b Yingda Securities (company level) 127 a Yintai Securities (consol. level) 127 b Yintai Securities (company level) 128 x Yongxing Asset management 129 a Yongxing Securities (consol. level) 129 b Yongxing Securities (company level) 130 a Yuekai Securities Co., Ltd (consol. level) 130 b Yuekai Securities Co., Ltd (company level) Zhejiang Zheshang 131 a Securities Asset management Co., Ltd. (consol. level) Zhejiang Zheshang 131 b Securities Asset management Co., Ltd. (company level) 132 a Zheshang Securities (consol. level)* 132 b Zheshang Securities (company level)* 133 x Zhongde Securities # 134 a Zhongshan Securities (consol. level) 134 b Zhongshan Securities (company level) Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 2020 - 2019 - 2020 29,342 2019 26,118 2020 9,148 2019 8,165 2020 7,697 2019 5,772 63 61 29,304 26,118 9,148 8,165 7,697 5,772 - - 18,945 13,830 3,861 3,153 2,592 2,016 28 30 16,381 12,331 3,037 2,671 2,592 2,016 - - 5,819 5,850 1,894 1,844 1,342 1,336 56 60 5,635 5,739 1,894 1,844 1,342 1,336 - N/A 196 N/A - N/A - N/A - N/A 2,476 N/A 347 N/A - N/A 10 N/A 2,481 N/A 347 N/A - N/A - - 15,326 15,070 3,992 3,692 3,830 2,297 63 62 15,299 15,066 3,992 3,692 3,830 2,297 - - 4,386 1,789 - - - - - - 1,982 1,783 - - - - - - 91,090 67,404 19,323 14,542 15,013 8,752 99 101 73,089 57,527 13,435 10,936 15,013 8,752 - - 1,356 1,342 - - - - - - 19,581 23,387 4,447 3,827 1,952 2,347 79 84 15,686 15,695 3,486 2,938 1,952 2,347 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 120 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 8,155 7,752 1,528 1,201 947 873 42 1,136 1,094 1,813 1,602 2019 7,550 7,584 1,535 1,415 1,093 1,010 2,262 2,074 2020 - 645 - 2019 - 377 - 2020 - 7,361 7,361 3,082 3,082 2019 - 3,700 3,700 2,712 2,712 2020 99 91 82 17 9 9 44 44 2019 76 68 76 32 2 2 45 45 2,942 1,088 - - - - - - 848 854 - - - - - - 29,927 22,258 - - - - - - 24,959 20,468 - - - - - - 572 150 N/A N/A N/A N/A N/A N/A 4,975 9,982 N/A N/A 1,204 1,406 18 20 3,516 4,457 N/A N/A 1,204 1,406 18 20 121 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 125 a Xiangcai Securities (consol. level) 125 b Xiangcai Securities (company level) 126 a Yingda Securities (consol. level) 126 b Yingda Securities (company level) 127 a Yintai Securities (consol. level) 127 b Yintai Securities (company level) 128 x Yongxing Asset management 129 a Yongxing Securities (consol. level) 129 b Yongxing Securities (company level) 130 a Yuekai Securities Co., Ltd (consol. level) 130 b Yuekai Securities Co., Ltd (company level) Zhejiang Zheshang 131 a Securities Asset management Co., Ltd. (consol. level) Zhejiang Zheshang 131 b Securities Asset management Co., Ltd. (company level) 132 a Zheshang Securities (consol. level)* 132 b Zheshang Securities (company level)* 133 x Zhongde Securities # 134 a Zhongshan Securities (consol. level) 134 b Zhongshan Securities (company level) Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 28 650 - 599 258 200 200 - 2019 37 600 - 599 203 200 - 2020 98 2 - 2019 9 0 - 2020 1,718 1,718 509 509 - 2019 3,610 3,610 2,028 2,028 533 201 201 - - - 533 - - 2,379 - - - - 102 2,561 2 206 - 100 2,445 2 196 - 3,408 589 N/A 8 7 - - - 322 16,208 14,331 5 16,143 14,324 N/A - - 191 306 1,146 3 306 1,146 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 122 Short-term financing bonds payable Paid-in capital/Share capital Reserves / Minority interests Net assets Number of employees 2020 2,545 2019 826 2020 4,019 2019 3,683 2020 4,547 2019 3,604 2020 - 2019 - 2020 8,566 2019 7,287 2020 1,731 2019 1,616 2,545 826 4,019 3,683 4,625 3,633 - - 8,644 7,316 N/A N/A 1,227 150 4,336 2,700 1,970 1,055 174 171 6,480 3,926 689 806 1,227 150 4,336 2,700 1,895 1,009 - - 6,230 3,709 565 599 - 255 1,400 1,400 1,789 1,572 - - 3,189 2,972 631 663 - 255 1,400 1,400 1,613 1,465 - - 3,013 2,865 616 649 - N/A 200 N/A (5) N/A - N/A 195 N/A 39 N/A - N/A 2,000 N/A (96) N/A - N/A 1,904 N/A 435 N/A - N/A 2,000 N/A (91) N/A - N/A 1,909 N/A 396 N/A 202 153 3,126 3,126 1,837 1,733 5 5 4,968 4,864 1,605 1,303 202 153 3,126 3,126 1,825 1,734 - - 4,951 4,860 N/A N/A - - 1,200 1,200 476 395 - - 1,676 1,595 153 144 - - 1,200 1,200 474 391 - - 1,674 1,591 153 144 6,307 6,533 3,614 3,333 15,735 11,523 - - 19,349 14,856 3,606 3,367 6,307 6,533 3,614 3,333 13,616 9,756 - - 17,231 13,089 2,896 2,690 - - 1,000 1,000 221 179 - - 1,221 1,179 260 251 332 1,157 1,700 1,700 3,774 3,531 127 125 5,601 5,356 1,509 1,504 332 1,157 1,700 1,700 3,734 3,501 - - 5,434 5,201 1,339 1,329 123 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 135 a Zhongtai Securities (consol. level)* 135 b Zhongtai Securities (company level)* Zhongtai Securities 136 x (Shanghai) Assets management 137 a Zhongtian Securities (consol. level) 137 b Zhongtian Securities (company level) 138 a ZTF Securities(consol. level) 138 b ZTF Securities(company level) Total (consol.) Total (company) Number of branches Total assets Client monies held in segregated accounts Balance of margin trading 2020 2019 - - 2020 174,510 2019 146,613 2020 32,266 2019 26,167 2020 31,207 2019 23,249 289 284 151,254 127,263 25,988 21,963 30,086 22,067 - - 1,007 896 - - - - - - 10,946 9,667 2,857 2,357 1,976 1,986 60 66 10,066 9,063 2,460 2,155 1,976 1,986 - - 6,142 5,092 44 238 - - 1 - 6,098 5,111 44 238 - - 10,601,023 8,679,510 1,790,119 1,378,445 1,583,398 1,095,178 8,853,686 7,259,299 1,363,667 1,097,293 1,499,215 1,024,722 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 124 Trading and derivatives financial Financial assets measured at assets amortised cost Financial assets at fair value through other comprehensive income -- debt securities Financial assets at fair value through other comprehensive income -- equity securities 2020 46,797 37,615 781 3,201 2,931 3,583 3,375 3,403,095 2,585,411 2019 33,442 26,995 631 2,495 2,133 3,230 3,230 2,877,115 2,167,499 2020 3,732 N/A - 76,727 64,250 2019 4,239 N/A - 94,725 72,769 2020 17,760 17,760 - 991,256 968,348 2019 18,522 18,522 - 820,534 809,541 2020 5,965 7,745 34 34 46 192,594 191,726 2019 5,511 7,309 34 34 34 174,125 172,730 125 Mainland China Securities Survey 2021 Financial highlights: balance sheet RMB million 135 a Zhongtai Securities (consol. level)* 135 b Zhongtai Securities (company level)* Zhongtai Securities 136 x (Shanghai) Assets management 137 a Zhongtian Securities (consol. level) 137 b Zhongtian Securities (company level) 138 a ZTF Securities(consol. level) 138 b ZTF Securities(company level) Total (consol.) Total (company) Long-term investment Trading and derivatives financial liabilities Short-term, long-term loans and debts issued ) 2020 841 8,335 2019 684 5,789 2020 328 208 2019 398 128 2020 37,752 30,827 2019 36,061 28,676 - - - - - - - - - - 122 122 332 332 - - 122 122 - - - - - - 237 106,508 452,648 84 89,507 392,158 417,998 176,584 - - - 293,420 102,918 1,981,772 1,683,520 1,718,385 1,438,773 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 126 Short-term financing bonds payable Paid-in capital/Share capital / Reserves Minority interests Net assets Number of employees 2020 11,604 2019 2020 2019 3,933 6,969 6,272 2020 26,310 2019 2020 2019 27,638 1,151 1,097 2020 34,430 2019 35,007 12,579 4,535 6,969 6,272 25,343 26,830 - - 32,312 33,102 2020 2019 7,758 7,718 6,714 6,693 - - 167 167 429 334 - - 596 501 135 138 992 1,088 2,225 2,225 992 1,088 2,225 2,225 - - 3,280 3,280 1,770 1,786 1,706 1,572 1,603 1,515 - - 3,995 3,797 - - 4,011 3,828 - - 4,986 4,795 862 862 751 751 809 703 - - 3,280 3,280 1,680 1,535 - - 4,960 4,815 646,506 427,935 508,108 475,198 1,832,345 1,539,181 59,457 59,675 2,399,909 2,111,001 610,212 398,933 558,104 516,587 1,734,370 1,463,200 - - 2,292,474 2,015,617 798 691 323,259 306,473 271,282 254,817 127 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 128 Net interest income/ (expenses) /( Operating income ) Operating expenses Asset impairment charge/ (write back) / / Profit/ (loss) / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 163 54 295 319 290 308 11 (4) 5 10 2 (1) 3 11 71 58 294 319 289 308 11 (4) 5 10 2 (1) 3 11 554 486 1,769 1,300 912 750 118 69 852 542 183 112 669 430 531 455 1,638 1,251 869 716 118 69 764 527 162 109 602 418 60 75 451 1,091 603 785 - - (152) 306 89 77 (241) 229 16 10 776 597 495 404 - - 281 193 72 49 208 144 899 830 3,244 2,908 2,121 1,909 213 59 1,117 1,015 232 215 885 800 831 723 3,311 2,726 2,087 1,808 225 38 1,219 935 211 198 1,008 737 3 (9) 279 78 93 116 6 - 186 (43) 46 (12) 140 (31) (1) (12) 268 85 82 123 1 8 186 (43) 46 (12) 140 (31) (237) (254) 2,956 2,721 1,640 1,520 487 202 1,313 1,193 207 253 1,106 940 (273) (265) 2,529 2,533 1,506 1,357 481 202 1,019 1,174 135 261 884 913 94 137 2,050 1,813 1,324 991 337 (115) 720 818 188 209 532 609 116 177 1,854 1,608 1,139 799 337 (115) 701 805 181 205 520 600 825 228 6,528 4,952 3,729 2,719 463 78 2,769 2,222 477 346 2,292 1,876 717 161 4,754 3,309 2,694 1,757 449 17 2,032 1,541 357 213 1,675 1,328 34 17 1,235 1,082 915 815 (0) 9 316 267 79 66 237 201 67 20 1,658 1,340 863 756 40 26 785 586 174 152 611 434 55 13 1,533 1,290 801 722 40 27 723 570 159 150 564 420 101 28 3,103 2,373 2,954 2,259 377 350 144 116 42 41 102 75 46 (59) 1,654 1,686 1,431 1,297 263 186 218 390 16 69 202 321 129 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 12 a Century Securities (consol. level) 12 b Century Securities (company level) 13 x Changjiang Financing Services Co. 14 a Changjiang Securities (consol. level)* * 14 b Changjiang Securities (company level)* * Changjiang Securities 15 a Asset Management Co., Ltd. (consol. level) Changjiang Securities 15 b Asset Management Co., Ltd. (company level) 16 a Chasing securities co., ltd (consol. level) 16 b Chasing securities co., ltd (company level) CICC Wealth 17 a Management (consol. level) CICC Wealth 17 b Management (company level) China Development 18 a Bank Securities (consol. level) ) China Development 18 b Bank Securities (company level) 19 a China Dragon Securities (consol. level) 19 b China Dragon Securities (company level) 20 a China Fortune Securities (consol. level) 20 b China Fortune Securities (company level) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 222 165 17 2 13 2 51 50 111 (10) 222 165 17 2 13 2 56 43 105 (4) - - 463 532 - - 12 16 - - 3,050 1,941 794 861 332 410 1,854 2,020 135 732 2,893 1,797 334 339 - - 1,777 2,201 153 1,052 - - - - 458 412 71 67 (85) (27) - - - - 479 412 40 23 (74) 17 897 531 311 267 71 76 565 295 (61) 20 645 445 311 267 83 91 523 304 (36) 22 2,437 1,531 16 38 42 54 833 649 754 (332) 2,383 1,492 15 22 93 121 539 588 742 122 71 55 291 292 111 154 1,219 268 (630) 386 71 54 291 292 570 368 127 120 503 352 127 120 669 427 22 101 562 342 13 7 98 138 1,217 263 (631) 367 18 21 552 383 49 265 19 21 521 396 22 153 43 26 957 249 58 81 43 26 718 235 29 75 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 130 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 219 111 638 323 526 387 4 1 120 (67) (30) (2) 150 (64) 218 110 637 320 525 384 4 1 120 (67) (30) (3) 150 (64) 16 13 498 563 356 391 0 (1) 142 177 36 46 106 131 1,281 791 7,784 7,033 4,940 4,714 469 539 2,830 2,340 743 757 2,086 1,583 1,043 552 6,390 6,097 3,963 3,276 440 65 2,414 2,836 556 594 1,858 2,242 25 16 500 495 171 207 6 4 328 288 82 72 247 216 22 16 499 495 170 207 6 4 328 288 82 72 247 216 294 341 2,106 1,562 1,395 1,022 191 67 702 533 169 127 533 406 259 277 1,815 1,437 1,097 903 168 61 709 529 170 125 539 404 1,141 921 5,287 2,995 3,077 1,984 340 (25) 2,192 1,002 357 349 1,835 653 1,121 957 4,948 3,422 2,967 2,191 340 (42) 1,963 1,223 380 342 1,583 881 577 406 1,736 1,644 1,565 2,288 1,025 1,634 181 (631) 60 (165) 121 (466) 572 401 1,708 1,591 1,528 2,221 1,025 1,614 188 (617) 58 (167) 131 (450) 559 821 1,917 2,075 1,215 1,621 347 812 698 460 204 109 494 351 401 358 1,609 1,431 997 977 208 241 608 459 153 96 456 363 229 114 2,010 1,034 1,058 1,001 23 33 968 17 178 15 790 2 198 74 1,578 774 836 600 23 33 742 176 179 42 563 134 131 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 132 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 4,178 3,492 23,749 17,041 14,571 10,192 496 410 9,157 6,830 1,845 1,580 7,312 5,250 3,468 2,594 14,410 11,902 6,212 5,660 405 322 8,157 6,207 1,549 1,370 6,609 4,837 (1,069) (1,095) 23,660 15,755 14,912 10,186 973 160 8,713 5,302 1,451 1,054 7,262 4,248 (1,409) (1,383) 11,259 8,114 8,456 5,755 379 119 2,791 2,103 201 62 2,590 2,041 2,599 1,895 24,278 18,708 12,975 9,914 156 96 11,309 8,774 1,805 1,461 9,504 7,313 2,255 1,626 18,844 13,560 8,949 6,837 143 84 9,904 6,729 1,294 991 8,610 5,738 66 53 1,280 1,193 273 207 - - 1,007 986 246 237 761 749 333 326 794 632 512 378 58 23 304 260 80 66 224 194 15 21 208 269 278 199 1 1 (70) 82 10 21 (80) 61 14 20 120 208 274 196 2 1 (155) 22 (11) 5 (144) 17 1,331 1,559 23,351 13,693 11,186 6,528 1,396 (59) 12,126 7,154 2,589 1,624 9,537 5,530 1,188 1,391 20,153 12,740 9,046 5,727 1,306 (119) 11,071 7,001 2,396 1,604 8,676 5,397 339 184 1,490 1,011 578 537 10 (7) 903 476 90 35 812 441 330 179 1,379 989 574 530 10 (7) 796 462 79 33 717 429 5 (17) 330 348 417 471 129 154 (95) (130) (24) (30) (72) (100) 547 444 3,162 2,223 2,205 1,902 148 316 954 230 98 44 856 186 437 330 2,407 1,632 1,590 1,521 144 318 811 111 40 (12) 771 123 133 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 31 a CITIC Securities (consol. level)* 31 b CITIC Securities (company level)* CITIC Securities 32 a (Shandong) (consol. level) CITIC Securities 32 b (Shandong) (company level) CITIC Securities South 33 a China Company Limited (consol. level) CITIC Securities South 33 b China Company Limited (company level) Credit Suisse Securties# 34 x (formerly known as Credit Suisse Founder Securities) 35 a Daton Securities (consol. level) 35 b Daton Securities (company level) 36 a Datong Securities Brokerage (consol. level) Datong Securities 36 b Brokerage (company level) 37 a Dongguan Securities (consol. level) 37 b Dongguan Securities (company level) 38 a Donghai Securities (consol. level) 38 b Donghai Securities (company level) 39 a Dongxing Securities (consol. level)* 39 b Dongxing Securities (company level)* Dongzheng Ronghui 40 x Securities Asset management * * # * * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 11,257 7,425 6,882 4,465 8,006 5,707 24,884 18,748 (6,391) (2,055) 7,214 4,278 5,663 3,736 2,408 1,619 23,631 13,023 (8,958) 622 1,167 666 - - - - 133 303 (132) (124) 1,167 666 - - - - 199 303 (133) (124) 415 323 50 137 95 123 73 652 359 (315) 415 322 50 137 92 122 26 643 367 (292) 188 71 70 46 - - 2 2 - - 197 152 3 5 8 10 1 (187) 31 243 194 148 3 5 8 12 10 (160) 18 236 248 170 72 15 19 21 61 39 12 (9) 245 165 72 15 19 21 59 38 11 (9) 1,267 876 287 309 81 68 130 128 18 90 1,194 818 287 309 76 68 125 158 26 81 610 457 342 308 59 64 913 408 225 368 506 381 342 306 58 58 555 110 472 365 993 691 1,322 1,016 203 356 1,846 587 (296) 498 944 654 1,284 975 251 435 1,236 (70) (341) 488 - - - - 154 163 (9) (6) 29 60 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 134 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2,587 2,045 54,383 43,140 33,744 26,129 7,076 2,590 20,470 16,995 4,954 4,347 15,517 12,648 1,484 1,498 31,594 25,577 16,616 11,142 6,216 1,504 14,902 14,448 2,560 2,747 12,342 11,701 621 457 1,806 1,319 1,095 792 34 5 715 524 180 132 535 392 601 425 1,849 1,286 1,125 784 67 5 729 499 168 125 561 374 252 (157) 1,253 4,067 960 4,628 415 204 143 (612) 29 (180) 114 (432) 250 (208) 1,205 788 939 1,131 415 23 117 (395) 33 (119) 84 (276) 23 21 283 153 267 205 (9) (1) 16 (52) 4 (10) 12 (42) 259 229 503 455 242 249 255 212 491 455 226 231 4 (6) 259 206 65 53 194 153 4 (6) 263 225 65 49 198 176 88 78 509 324 344 292 19 3 170 35 33 6 137 29 88 78 502 318 333 281 19 3 174 40 33 6 141 34 698 557 3,165 2,086 2,089 1,250 158 119 1,061 834 257 197 805 637 648 494 2,430 1,972 1,407 1,166 157 120 1,009 804 238 185 770 619 61 (25) 2,269 1,642 1,544 1,432 278 477 718 219 262 156 457 63 131 142 2,113 1,414 1,588 1,224 564 507 521 190 171 44 350 146 849 786 5,687 4,475 3,736 3,075 656 467 1,945 1,453 405 232 1,540 1,221 962 898 4,355 3,411 2,394 2,019 342 151 1,950 1,445 320 217 1,631 1,228 1 1 189 232 85 87 - - 104 145 23 34 81 111 135 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 41 a East Asia Qianhai Securities (consol. level)# # East Asia Qianhai 41 b Securities (company level)# ( )# 42 a Eastmoney Securities (consol. level) 42 b Eastmoney Securities (company level) 43 a Essence Securities (consol. level) 43 b Essence Securities (company level) Essence Securities 44 x Asset Management Company Limited 45 a Everbright Securities (consol. level)*# *# 45 b Everbright Securities (company level)*# Everbright Securities 46 x Asset management Co., Ltd. First Capital Investment 47 a Banking Co., Ltd. (consol. level) First Capital Investment 47 b Banking Co., Ltd. (company. level) 48 a First Capital Securities (consol. level) * *# * 48 b First Capital Securities (company level) * ( * 49 x Founder Financing Services Co., Ltd. 50 a Founder Securities (consol. level)* * 50 b Founder Securities (company level)* * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 30 5 272 104 6 9 247 66 (25) - 30 5 272 104 31 15 133 44 63 17 3,341 1,861 11 46 9 7 297 200 16 1 2,967 1,642 11 46 9 7 286 195 1 6 3,325 2,296 1,014 785 363 315 2,191 909 1,011 2,133 2,982 1,984 998 756 146 556 2,381 704 696 2,092 - N/A - N/A 359 N/A 2 N/A 4 N/A 3,656 2,512 1,987 1,378 1,497 1,237 2,807 2,162 (465) 135 2,823 1,908 1,950 1,326 - - 2,904 1,657 893 1,682 - - - - 1,426 1,185 22 79 21 (28) - - 308 201 - - 5 26 29 2 - - 308 201 - - 12 26 22 2 418 287 447 415 687 751 1,109 683 72 354 412 284 156 203 246 385 1,013 533 20 311 - - 600 407 - - 25 (5) 3 13 4,149 2,756 655 501 259 331 1,255 1,918 (619) (704) 3,676 2,371 39 42 282 532 1,095 1,198 (379) (109) * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 136 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 76 68 612 254 569 262 66 6 43 2 - - 43 2 76 68 610 253 567 262 66 6 43 2 - - 43 2 1,326 712 5,076 2,857 1,592 1,179 28 8 3,471 1,670 511 235 2,960 1,435 1,262 671 4,598 2,594 1,202 941 27 8 3,384 1,646 493 229 2,891 1,417 2,698 1,955 11,749 9,187 7,256 5,887 562 390 4,479 3,288 967 820 3,512 2,468 2,059 1,380 9,448 7,591 5,451 4,659 516 356 3,971 2,919 760 731 3,211 2,188 17 N/A 381 N/A 225 N/A - N/A 156 N/A 39 N/A 117 N/A 2,114 1,573 15,866 10,057 10,330 7,211 945 1,536 3,999 1,219 1,532 525 2,466 694 1,625 1,093 10,485 7,981 4,555 7,085 664 3,724 5,922 882 1,224 101 4,699 781 40 32 1,511 1,269 523 549 - - 986 721 245 180 740 541 7 7 349 236 222 193 0 - 128 43 33 11 96 32 7 7 349 236 222 193 0 - 128 43 33 11 96 32 121 (92) 3,120 2,583 2,123 1,896 222 314 1,046 693 167 110 879 583 54 (144) 2,127 1,710 1,432 1,269 206 307 741 444 82 54 659 390 21 43 716 518 603 488 (9) (1) 133 31 32 26 101 5 1,560 1,376 7,542 6,595 5,943 5,489 970 469 1,548 1,129 350 146 1,198 983 1,421 1,116 6,288 5,254 5,069 3,905 1,493 460 1,147 1,369 272 90 875 1,279 137 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position Galaxy Jinhui Asset 51 a management Co., Ltd (consol. level) Galaxy Jinhui Asset 51 b management Co., Ltd (company level) 52 a GF Securities (consol. level)* * 52 b GF Securities (company level)* * GF Securities Asset 53 a management (Guangdong) (consol. Level) GF Securities Asset 53 b management (Guangdong) (company level) 54 a Golden Sun Securities (consol. level) 54 b Golden Sun Securities (company level) Golden Sun Securities 55 x Asset management Co., Ltd. 56 x Goldman Sachs Gao Hua Securities # # 57 a Goldstate Securities (consol. level) 57 b Goldstate Securities (company level) 58 a Great Wall Glory Securities (consol. level) Great Wall Glory 58 b Securities (company level) 59 a Great Wall Securities (consol. level)* * 59 b Great Wall Securities (company level)* * 60 a GuoDu Securities (consol. level) 60 b GuoDu Securities (company level) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 - - - - 563 626 57 15 (2) 4 - - - - 571 631 (20) (2) 7 (22) 6,572 4,198 649 1,438 6,598 3,911 7,147 6,036 666 1,097 6,042 3,818 572 1,366 - - 5,165 4,850 0 84 - - - - 1,248 1,262 319 626 (9) (16) - - - - 1,282 1,329 233 112 (47) 88 934 528 143 156 70 83 376 320 (139) 447 918 522 141 154 - - 364 311 (140) 442 - - - - 67 81 12 9 1 6 - - 9 82 - - 1 1 - - 197 147 43 60 36 46 268 271 (40) 17 197 147 43 60 36 46 251 257 (50) 12 126 88 32 98 96 85 146 200 7 (64) 113 75 32 98 93 83 63 40 3 1 1,034 665 451 597 106 161 1,903 1,034 64 440 918 607 451 597 105 160 1,863 964 30 467 395 271 163 165 27 46 941 420 (31) 309 373 252 163 165 27 46 838 479 (10) 142 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 138 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 (15) 43 604 687 473 612 30 60 131 75 33 19 98 56 21 26 580 633 447 558 6 9 133 74 33 18 99 56 4,254 3,168 29,153 22,810 15,525 12,110 856 681 13,599 10,276 2,828 2,166 10,771 8,110 3,763 2,820 16,662 13,676 7,869 6,478 382 225 8,775 7,191 1,435 1,262 7,340 5,929 (28) (235) 1,731 1,779 501 528 1 8 1,229 1,252 304 309 924 943 84 55 1,752 1,724 495 513 1 8 1,256 1,211 311 298 945 913 471 275 1,904 1,859 1,783 1,441 193 460 265 1,786 1,743 1,580 1,277 148 1 2 81 97 140 129 45 93 104 414 66 189 462 26 (59) (32) 40 105 64 309 35 110 154 352 5 (5) (64) (27) 55 45 426 518 346 (431) - - 81 87 289 247 1,197 1,209 1,059 843 207 (90) 130 331 273 224 755 752 708 467 198 (97) 38 238 227 213 641 629 563 1,008 230 578 83 (372) 247 277 556 584 406 576 121 271 150 14 22 22 58 65 28 90 102 241 6 67 32 171 29 (50) 54 (322) 42 4 108 10 425 263 6,869 3,899 5,037 2,698 98 6 1,827 1,202 296 187 1,531 1,015 370 209 3,806 3,063 2,087 1,917 68 6 1,711 1,147 266 177 1,445 970 253 264 1,769 1,497 762 814 6 14 1,011 685 167 145 844 540 239 250 1,641 1,349 677 723 6 14 968 627 163 123 805 504 139 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 61 a Guolian Securities (consol. level) * 61 b Guolian Securities (company level) * 62 a Guorong Securities (consol. level) * * 62 b Guorong Securities (company level) 63 a Guosen Securities (consol. level) * * 63 b Guosen Securities (company level) * * 64 a Guotai Junan Securities (consol. level)* * 64 b Guotai Junan Securities (company level)* * Guotai Junan Securities 65 a Asset management (consol. level) Guotai Junan Securities 65 b Asset management (company level) 66 a Guoyuan Securities (consol. level)* * 66 b Guoyuan Securities (company level)* * 67 a Haitong Securities (consol. level)* * 67 b Haitong Securities (company level)* * 68 x Hengtai changcai Securities 69 a Hengtai Securities (consol. level) * * 69 b Hengtai Securities (company level) * * 70 a Hongta Securities (consol. level)* * 70 b Hongta Securities (company level)* * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 526 360 275 246 72 65 592 215 87 213 526 360 27 18 78 71 600 220 57 213 206 178 379 425 80 80 327 213 (26) 251 123 97 377 420 80 80 355 208 (68) 246 6,424 4,092 1,892 1,426 276 236 4,894 4,505 67 712 6,112 3,887 1,847 1,403 257 232 4,888 3,869 (150) 663 8,433 5,630 3,735 2,593 1,545 1,665 8,799 7,311 433 1,700 7,593 5,159 3,188 1,891 - - 4,489 6,860 145 969 - - - - 1,738 1,754 224 143 89 53 - - - - 1,738 1,756 220 145 93 50 1,011 682 622 400 83 118 992 518 25 142 905 625 613 387 92 147 904 223 16 7 5,208 3,571 4,939 3,457 3,372 2,395 10,349 9,231 1,271 2,369 4,368 2,904 3,537 2,033 - - 6,462 5,638 (803) 1,454 - - 289 283 - - - - - - 934 693 313 316 48 48 913 760 (196) 710 840 649 25 34 48 38 762 578 (4) 510 246 184 155 70 136 90 2,857 1,532 (315) 291 229 170 155 70 24 8 2,596 1,427 (396) 280 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 140 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 306 497 1,876 1,619 1,088 932 12 (12) 788 686 200 165 588 521 267 443 1,572 1,347 818 701 11 (14) 753 645 185 159 568 486 28 13 1,046 1,231 894 1,198 (16) 393 148 35 48 9 100 26 (9) (28) 897 1,068 738 1,028 (20) 393 157 42 35 8 122 34 3,148 1,700 18,784 14,093 10,151 7,628 1,002 1,021 8,344 6,232 1,725 1,318 6,618 4,914 2,967 1,750 16,271 12,235 7,928 5,888 967 648 8,030 6,101 1,474 1,246 6,556 4,855 5,691 5,227 35,200 29,949 20,249 18,490 1,312 2,070 14,872 11,445 3,135 2,394 11,737 9,051 4,560 4,289 20,819 20,057 10,150 9,333 784 1,021 10,632 10,684 2,282 1,937 8,350 8,747 (9) (38) 2,249 2,058 1,295 1,166 54 52 933 896 214 161 718 735 10 (42) 2,249 2,054 1,295 1,162 54 48 933 896 214 161 718 735 1,539 1,279 4,529 3,199 2,774 2,094 490 369 1,734 1,151 363 236 1,371 915 1,196 1,044 3,764 2,478 2,307 1,803 473 324 1,433 713 256 137 1,177 576 4,891 4,148 38,220 34,860 22,358 21,053 4,597 2,839 15,757 13,872 3,720 3,331 12,037 10,541 2,508 2,752 16,750 15,259 7,799 6,817 1,800 913 8,969 8,521 1,695 1,776 7,275 6,745 13 14 306 299 242 243 - 1 61 56 16 14 45 42 277 182 2,732 3,202 2,186 2,192 185 339 599 975 116 212 482 763 293 217 2,022 2,079 1,441 1,444 182 331 647 600 114 119 533 481 (256) (240) 5,585 2,066 3,745 939 171 35 1,855 1,125 403 278 1,452 847 (344) (275) 2,269 1,689 847 650 166 20 1,434 1,037 304 251 1,130 786 141 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 71 a Hongxin Securities (consol. level) 71 b Hongxin Securities (company level) 72 x HSBC Qianhai Securities# 73 a Huaan Securities (consol. level)* 73 b Huaan Securities (company level)* 74 a Huachuang Securities(consol. level) 74 b Huachuang Securities (company level) 75 a Huafu Securities (consol. level) 75 b Huafu Securities (company level) 76 a Huajin Securities (consol. level) 76 b Huajin Securities (company level) 77 a Huarong Securities (consol. level) 77 b Huarong Securities (company level) 78 a Huatai Securities (consol. level)* 78 b Huatai Securities (company level)* Huatai Securities 79 a (Shanghai) Asset management Co., Ltd. (consol. level) Huatai Securities 79 b (Shanghai) Asset management Co., Ltd. (company level) 80 x Huatai United Securities # * * * * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 304 214 174 150 108 123 165 208 126 14 304 214 174 150 110 126 155 212 (112) 16 23 10 69 26 - - 10 - (0) - 1,006 708 152 191 311 113 1,377 1,019 (342) 557 876 629 152 191 369 146 894 752 48 437 882 619 419 241 145 143 1,300 798 70 330 840 593 419 241 144 143 1,330 633 138 471 900 555 238 202 333 317 892 897 1,076 174 902 555 238 202 154 102 442 860 53 (102) 76 44 378 236 35 31 201 459 168 57 76 44 378 236 48 32 330 338 (70) 63 N/A 224 N/A 231 N/A 55 N/A 777 N/A 722 N/A 224 N/A 231 N/A 428 N/A 90 N/A 71 6,460 4,108 3,644 1,947 2,980 2,772 17,111 9,849 (2,748) 2,057 6,004 3,778 412 292 - - 9,180 6,150 (1,273) 2,118 - - - - 1,469 1,445 1,535 972 (667) 83 - - - - 1,982 1,761 298 140 (222) 363 - - 2,860 1,526 - - 154 70 (21) 126 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 142 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 85 65 732 807 582 558 85 29 147 249 36 63 110 186 76 52 730 804 580 557 84 35 146 248 39 63 108 185 15 36 260 194 395 379 (0) - (136) (179) - - (136) (179) 667 541 3,357 3,232 1,711 1,738 138 428 1,632 1,483 366 269 1,265 1,214 416 384 2,797 2,584 1,372 1,415 55 270 1,412 1,158 296 219 1,116 939 (36) 103 3,222 2,502 2,295 1,775 363 167 931 737 218 194 712 543 (132) (6) 2,893 2,129 2,154 1,648 363 166 736 486 136 129 600 357 483 453 4,041 2,784 2,431 1,785 356 291 1,606 994 192 160 1,414 834 457 426 2,306 2,116 1,914 1,450 3 135 382 661 (39) (2) 421 663 (90) (118) 809 970 678 703 41 (18) 126 267 33 64 93 203 (30) (26) 776 956 665 695 41 (18) 106 260 28 63 78 197 N/A 1,107 N/A 3,264 N/A 3,227 N/A 2,090 N/A 36 N/A (11) N/A 47 N/A 212 N/A 1,297 N/A 1,361 N/A 277 N/A (65) N/A (69) N/A 4 2,605 2,122 31,445 24,863 17,944 13,255 1,306 720 13,504 11,586 2,634 2,529 10,870 9,057 1,868 1,351 15,965 14,170 9,095 6,663 1,239 531 6,894 7,500 971 1,211 5,924 6,289 7 (55) 2,663 2,741 1,090 987 0 126 1,570 1,752 397 425 1,172 1,327 35 35 2,468 2,594 841 860 (2) 147 1,624 1,733 398 425 1,226 1,308 62 57 3,081 1,796 2,246 1,302 (3) (6) 831 484 209 121 622 363 143 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 81 a Huaxi Securities (consol. level)* * 81 b Huaxi Securities (company level)* * 82 x Huaying Securities 83 a Hwabao Securities (consol. level) 83 b Hwabao Securities (company level) Industrial Asset 84 a management Co., Ltd (consol. level) Industrial Asset 84 b management Co., Ltd (company. level) 85 a Industrial Securities (consol. level)* 85 b Industrial Securities (company)* J.P. Morgan Securities 86 x (China) Company Limited # 87 a Jianghai Securities (consol. level) Jianghai 87 b Securities(company level) Jinyuan President 88 x Securities Corporation Limited # 89 a JZ Securities (consol. level) 89 b JZ Securities (company level) 90 a Kaiyuan Securities (consol. level) 90 b Kaiyuan Securities (company level) * * # # 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 1,705 1,003 446 520 110 83 1,039 831 292 296 1,658 972 446 520 110 86 1,152 726 66 363 - - 298 232 - - 9 21 14 4 276 168 5 2 65 45 55 71 92 167 276 168 5 2 65 45 47 69 85 192 - - - - 151 271 158 71 (145) (127) - - - - 166 281 42 (20) (46) (46) 2,778 1,563 1,379 744 140 295 5,119 2,601 (377) 1,557 2,622 1,442 1,315 636 - - 2,776 2,149 743 1,886 1 - 4 - - - - - 0 - 335 247 406 392 315 230 406 392 40 116 713 310 360 510 40 117 601 289 362 512 0 N/A 1 N/A - N/A 8 N/A 5 N/A 52 53 204 172 61 65 108 41 37 204 172 56 60 9 456 193 1,032 850 215 287 494 274 171 1,032 849 215 287 459 22 44 94 19 (120) 47 34 161 343 (6) 158 347 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 144 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 1,041 1,170 4,683 3,937 2,252 2,066 85 37 2,453 1,865 551 433 1,902 1,432 915 1,014 4,391 3,709 2,173 1,991 97 29 2,242 1,710 510 400 1,732 1,310 12 18 335 276 254 227 0 - 82 49 22 13 60 36 268 227 775 691 595 538 1 5 174 153 35 31 139 122 266 224 758 710 591 535 (1) 2 161 175 30 37 130 138 (5) (17) 226 266 132 140 1 1 92 125 16 35 76 90 (8) (20) 222 263 129 138 1 1 92 125 16 35 76 90 1,167 751 17,580 14,250 11,380 11,589 637 747 6,156 2,630 1,572 715 4,584 1,915 1,067 623 8,752 6,948 4,804 4,645 266 185 3,911 2,277 950 470 2,961 1,807 9 4 212 2 393 115 - - (181) (112) (3) (26) (178) (86) (29) (68) 1,864 1,558 1,707 1,377 800 417 162 213 30 27 132 186 (40) (85) 1,719 1,502 1,667 1,325 800 417 57 209 (4) 24 60 185 12 N/A 17 N/A 60 N/A - N/A (18) N/A 1 N/A (19) N/A 148 100 631 513 465 479 116 141 92 345 434 430 430 116 445 346 2,829 2,070 1,998 1,469 92 430 333 2,586 1,990 1,777 1,400 91 90 166 35 33 10 132 25 90 (85) 5 (15) (2) (70) 7 75 829 559 205 149 623 410 74 805 553 198 144 607 409 145 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 91 x Kington Securities 92 a Lianchu Securities 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 0 - - - - - - - - - 106 71 97 70 29 20 312 271 181 262 92 b Lianchu Securities 93 a Minmetals Securities Brokerage (consol. level) 93 b Minmetals Securities Brokerage (company level) 94 a Minsheng Securities (consol. level) 94 b Minsheng Securities (company level) 95 x Morgan Stanley Huaxin Securities # 96 a Nanjing Securities (consol. level)* 96 b Nanjing Securities (company level)* 97 a New Times Securities (consol. level) 97 b New Times Securities (company level) Nomura Orient 98 x International Securities Co., Ltd # 99 a Northeast Securities (consol. level)* 99 b Northeast Securities (company level)* 100 x N-Securities ( # * * # * * 106 71 97 70 29 20 403 249 17 265 97 64 645 275 146 141 405 357 (9) 128 97 64 642 274 145 141 405 357 (9) 128 556 391 1,613 697 55 46 1,301 1,028 100 604 521 373 1,613 697 56 49 1,117 905 (119) 274 - - 149 99 - - 1 - - - 659 604 258 302 49 74 389 213 57 182 530 390 258 301 49 72 374 198 25 77 333 285 55 28 58 66 357 472 (694) (24) 333 285 55 28 58 66 401 512 (307) (6) 22 - - - 0 - 95 - (7) - 1,021 751 281 331 154 163 1,925 1,171 502 1,100 964 661 281 331 - - 1,727 896 538 1,022 36 32 1 5 1 4 (0) 44 (0) 119 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 146 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 3 2019 4 2020 3 2019 4 2020 2 2019 3 2020 (0) 2019 - 2020 1 2019 1 2020 - 2019 - 2020 1 2019 1 82 151 869 915 810 770 171 158 52 135 10 31 42 104 79 147 791 873 793 753 171 158 (9) 109 (41) 14 32 95 512 414 1,810 1,387 1,197 956 169 201 614 425 154 104 460 321 496 405 1,790 1,376 1,188 948 169 201 603 422 151 103 452 319 (116) (320) 3,632 2,688 2,341 2,033 149 61 1,230 652 311 120 919 532 (154) (360) 3,092 2,008 2,091 1,690 47 11 938 316 222 50 716 266 7 12 328 132 325 268 - - 4 (134) 2 (25) 1 (109) 906 790 2,365 2,202 1,318 1,247 92 38 1,038 946 223 231 815 715 885 766 2,134 1,822 1,162 1,019 92 38 960 793 197 192 763 601 279 232 1,604 1,954 1,406 1,343 34 6 191 597 154 158 37 439 239 161 786 1,058 582 663 19 (6) 198 381 31 87 167 294 16 18 127 57 203 111 1 - (69) (54) - - (69) (54) 138 (80) 6,610 7,969 4,794 6,691 252 242 1,807 1,276 340 233 1,467 1,043 114 (100) 3,699 2,875 2,001 1,950 237 221 1,690 924 364 165 1,326 759 13 (56) 52 155 108 158 (1) 1 (57) (591) 3 701 (60) (1,292) 147 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 101 a Orient Securities (consol. level)* 101 b Orient Securities (company level)* 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 * 2,621 1,546 1,582 1,050 2,465 1,800 5,012 3,415 1,376 937 * 2,099 1,265 592 335 - - 4,609 3,023 837 1,208 102 x Orient Securities Asset management Co., Ltd. Orient Securities 103 x Investment Banking Co.,Ltd 104 a Pacific Securities (consol. level)* 104 b Pacific Securities (company level)* 105 a Ping'an Securities (consol. level) 105 b Ping'an Securities (company level) 106 a Sealand Securities (consol. level)* 106 b Sealand Securities (company level)* Shanghai Haitong 107 x Securities Asset management Co., Ltd. 108 a Shanghai Securities (consol. level) 108 b Shanghai Securities (company level) 109 a Shanxi Securities (consol. level)* 109 b Shanxi Securities (company level)* Shengang Securities 110 a Company Limited (consol. level)# Shengang Securities 110 b Company Limited (company level)# - - - - 2,440 1,772 15 28 226 77 - - 969 613 - - 36 26 2 - * 496 330 203 108 132 148 589 687 (281) 706 * 496 330 203 107 132 148 625 652 (255) 660 3,884 2,400 1,476 1,120 474 442 1,223 1,717 164 (33) 3,660 2,269 1,439 1,073 426 365 1,228 1,658 154 67 * 822 543 422 358 339 297 1,386 760 66 220 * 628 415 422 358 347 288 1,276 685 34 107 - - - - 1,407 970 398 78 (71) 178 719 523 47 57 31 40 368 263 62 256 611 441 47 57 36 48 273 184 93 209 * 520 431 652 572 78 91 1,696 1,064 (227) 257 * 520 341 284 232 86 106 1,537 1,051 (56) 43 35 24 626 211 41 14 414 270 131 155 # # 35 24 626 211 41 14 413 270 132 155 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 148 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 779 2019 891 2020 23,134 2019 19,052 2020 20,437 2019 16,301 2020 3,885 2019 1,044 2020 2,786 2019 2,855 2020 65 2019 376 2020 2,722 2019 2,479 706 843 8,969 6,666 7,883 4,257 3,881 1,013 1,097 2,393 (439) (9) 1,536 2,402 32 49 2,862 1,945 1,844 1,168 0 (6) 1,077 856 267 255 810 601 25 29 1,036 668 935 630 (0) - 105 57 26 12 79 45 22 (229) 1,172 1,777 1,858 1,194 766 (0) (1,071) 628 (316) 154 (756) 474 8 (218) 1,215 1,702 1,826 1,155 754 (6) (997) 594 (307) 165 (689) 429 1,871 1,181 13,618 11,649 9,688 8,651 779 452 3,884 2,987 782 611 3,102 2,376 1,802 1,138 9,099 7,003 5,402 4,122 773 456 3,651 2,870 706 545 2,945 2,325 409 534 4,482 3,560 3,433 2,845 568 434 1,041 717 232 173 810 544 323 446 3,067 2,329 2,278 1,856 529 430 781 469 156 105 625 364 (82) (85) 1,793 1,377 856 501 - - 937 924 232 228 705 696 459 355 1,713 1,530 1,113 1,160 87 114 599 379 133 77 466 302 427 361 1,509 1,335 915 968 83 69 594 377 131 75 463 302 7 (143) 3,342 5,102 2,333 4,435 103 159 1,006 666 244 146 762 520 (142) (191) 2,333 1,689 1,133 975 30 30 1,192 712 251 127 941 585 83 63 1,422 785 1,006 707 2 48 415 75 84 - 331 75 80 63 1,418 785 1,005 707 2 48 412 75 83 - 329 75 149 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million 111 x Shenwan Hongyuan Financing Services Co. 112 a Shenwan Hongyuan Securities (consol. level) 112 b Shenwan Hongyuan Securities (company level) 113 x Shenwan Hongyuan Securities (Western) 114 a Sinolink Securities (consol. level)* * 114 b Sinolink Securities (company level)* * 115 a Soochow Securities (consol. level)* * 115 b Soochow Securities (company level)* * 116 a Southwest Securities (consol. level)* )* 116 b Southwest Securities (company level)* * 117 a Tebon Securities (consol. level) 117 b Tebon Securities (company level) 118 x Tebon Securities Asset Management 119 a TF Securities (consol. level)* * 119 b TF Securities (company level)* * Tianfeng (Shanghai ) 120 x Securities Asset management Co., Ltd Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 - - 795 499 - - 28 45 12 3 5,526 3,697 1,424 1,222 1,224 1,260 5,387 5,205 1,025 82 4,369 3,019 547 475 1,322 1,381 6,125 4,866 1,371 16 724 467 - - - - 21 50 8 (1) 1,651 1,140 1,666 901 114 96 1,340 994 71 245 1,557 1,081 1,657 877 106 91 1,517 1,117 (18) 139 1,525 1,050 1,083 625 139 161 2,151 1,907 154 (437) 1,363 965 1,086 625 76 102 1,682 1,176 (3) 176 747 583 250 295 30 55 1,690 1,295 (1) 906 708 558 230 265 31 59 1,478 1,358 (135) 602 181 113 181 242 287 388 441 233 163 208 137 94 181 241 156 305 362 208 130 171 - N/A - N/A 2 N/A 0 N/A - N/A 789 577 1,025 744 837 667 1,325 1,221 505 323 717 544 919 738 785 677 1,152 850 242 326 - N/A - N/A 33 N/A 2 N/A - N/A * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 150 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 23 20 872 568 463 426 0 0 410 142 98 29 312 113 3,850 3,143 20,553 16,768 11,032 10,015 775 672 9,483 6,730 1,527 1,067 7,957 5,663 2,567 1,917 16,620 11,972 7,244 6,181 730 409 9,338 5,768 1,058 857 8,280 4,911 514 446 1,274 966 425 432 2 1 848 534 211 124 637 410 945 771 6,063 4,350 3,722 2,697 100 14 2,424 1,706 551 408 1,874 1,298 711 562 5,696 3,988 3,456 2,412 71 (36) 2,317 1,625 523 377 1,794 1,248 596 328 7,356 5,130 5,055 3,794 727 259 2,273 1,334 560 355 1,714 979 456 197 4,712 3,268 2,802 1,895 577 109 1,883 1,367 359 306 1,524 1,061 331 188 3,170 3,489 1,970 2,383 196 316 1,182 1,099 124 134 1,058 965 382 225 2,722 3,120 1,895 1,772 483 50 809 1,341 49 74 760 1,267 142 224 1,404 1,416 907 1,122 26 66 104 91 14 18 90 73 106 198 1,082 1,224 668 883 28 63 51 128 4 20 47 108 6 N/A 8 N/A 1 N/A 0 N/A 7 N/A 2 N/A 5 N/A (468) (373) 4,360 3,846 3,510 3,448 481 484 888 462 200 41 688 421 (638) (438) 3,303 2,808 2,856 2,375 406 282 473 493 78 104 395 389 0 N/A 36 N/A 26 N/A 2 N/A 17 N/A 4 N/A 13 N/A 151 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 121 a UBS Securities (consol. level) # # 121 b UBS Securities (company level) # # 122 a Wanhe Securities 122 b Wanhe Securities 123 a Wanlian Securities (consol. level) 123 b Wanlian Securities (company level) 124 a Western Securities (consol. level)* * 124 b Western Securities (company level)* * 125 a Xiangcai Securities (consol. level) 125 b Xiangcai Securities (company level) 126 a Yingda Securities (consol. level) 126 b Yingda Securities (company level) 127 a Yintai Securities (consol. level) 127 b Yintai Securities (company level) 128 x Yongxing Asset management 129 a Yongxing Securities (consol. level) 129 b Yongxing Securities (company level) 130 a Yuekai Securities Co., Ltd (consol. level) 130 b Yuekai Securities Co., Ltd (company level) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 400 293 208 138 - - 65 98 2 (1) 393 291 208 138 - - 65 98 2 (1) 113 88 55 21 3 5 576 416 (189) 46 113 88 55 21 3 5 567 415 (185) 43 476 341 125 128 74 114 549 52 (127) 80 502 341 125 128 138 115 297 157 (40) (50) 1,037 659 529 318 12 22 1,555 1,483 211 160 1,020 659 529 318 20 30 1,432 1,465 270 290 642 445 114 104 53 105 330 91 (5) 343 648 449 114 104 54 105 339 120 (2) 324 255 181 20 153 61 55 182 83 38 97 225 154 20 153 57 53 170 80 38 89 146 110 5 7 1 2 183 219 (32) (18) 146 110 5 7 1 2 111 194 (32) (18) - N/A - N/A - N/A 0 N/A - N/A 3 N/A - N/A - N/A 1 N/A 51 N/A 3 N/A - N/A - N/A 1 N/A 51 N/A 309 190 78 78 29 36 120 88 33 86 309 190 78 78 29 36 111 79 16 89 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 152 Net interest income/ (expenses) /( Operating income Operating expenses ) Asset impairment charge/ (write Profit/ (loss) back) / / / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 153 Mainland China Securities Survey 2021 Financial highlights: profit and loss RMB million Net brokerage commission income Net investment banking commission income Net asset management commission income Investment income Fair value gains/ (losses) on trading and derivatives position 131 a 131 b Zhejiang Zheshang Securities Asset management Co., Ltd. (consol. level) Zhejiang Zheshang Securities Asset management Co., Ltd. (company level) 132 a Zheshang Securities (consol. level)* 132 b Zheshang Securities (company level)* 133 x Zhongde Securities # 134 a Zhongshan Securities (consol. level) 134 b Zhongshan Securities (company level) 135 a Zhongtai Securities (consol. level)* 135 b Zhongtai Securities (company level)* Zhongtai Securities 136 x (Shanghai) Assets management 137 a Zhongtian Securities (consol. level) 137 b Zhongtian Securities (company level) 138 a ZTF Securities (consol. level) 138 b ZTF Securities (company level) Total (consol.) * * # * * ( ) ( ) ( ) Total (company) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 - - - - 360 257 276 14 (188) 97 - - - - 402 257 47 13 5 41 1,469 898 1,026 313 339 266 2,117 1,202 (630) 142 1,515 899 1,026 313 - - 1,392 1,279 (336) 106 - - 395 345 - - 29 3 - - 581 448 726 631 45 73 554 691 (234) (158) 223 154 726 631 60 98 326 297 (265) (70) 3,600 2,432 1,092 1,113 328 384 1,660 1,729 428 749 3,466 2,285 962 970 - - 1,303 1,156 469 821 - - - - 409 434 22 20 2 1 199 153 13 4 6 8 286 234 (11) 46 167 133 13 4 6 9 266 216 (14) 41 1 - 535 430 - - 147 12 330 293 1 - 535 430 - - 147 12 276 293 145,489 95,284 73,305 53,817 43,289 35,891 192,391 136,347 (4,862) 29,845 129,555 84,255 67,316 48,335 29,439 27,191 152,217 109,555 (3,853) 32,250 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 154 Net interest income/ (expenses) / () Operating income Operating expenses Asset impairment charge/ (write back) / / Profit/ (loss) / Total tax expenses/ (income) /( Net profit/ (loss) after tax ) / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 24 23 485 396 380 286 1 1 105 110 24 26 81 84 13 23 481 339 373 286 1 1 108 53 25 12 84 41 600 307 10,637 5,659 8,464 4,364 201 (30) 2,166 1,289 539 321 1,627 968 405 152 4,079 2,793 2,374 1,527 186 (32) 1,692 1,260 420 244 1,272 1,016 12 33 438 384 378 343 4 4 60 42 19 14 42 28 18 (154) 1,740 1,575 1,395 1,277 83 (5) 357 299 97 64 260 235 136 82 1,256 1,236 940 946 26 (4) 328 291 87 61 241 230 2,083 1,502 10,352 9,709 7,035 6,863 402 268 3,275 2,833 694 539 2,581 2,294 1,638 1,179 8,042 6,689 4,990 4,224 158 121 3,041 2,455 615 425 2,426 2,030 5 4 493 531 369 428 - - 124 103 30 24 94 79 152 144 661 604 406 400 12 5 253 205 54 49 199 156 147 141 588 550 350 355 12 5 237 196 53 47 184 149 20 28 1,041 772 751 540 18 2 260 221 78 64 182 157 16 26 983 770 744 522 18 2 209 238 64 65 145 173 71,245 56,524 620,949 495,098 391,986 325,927 42,614 30,436 225,603 165,852 47,416 37,122 178,187 128,726 59,611 45,827 446,752 360,228 255,112 209,952 35,922 21,682 189,889 148,195 34,979 28,730 154,911 119,526 155 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / 1 a AJ Securities (consol. level) 1 b AJ Securities (company level) ) 2 a AVIC Securities Co., Ltd. (consol. level) 2 b AVIC Securities Co., Ltd. (company level) ) Beijing Gao Hua 3 a Securities (consol. level) Beijing Gao Hua 3 b Securities (company level) BOC International 4 a (China) Limited (consol. level) * # BOC International 4 b (China) Limited (company level) * # Bohai Huijin 5 a Securities Asset management Co., Ltd. (consol. level) Bohai Huijin 5 b Securities Asset management Co., Ltd. (company level) 6 a Bohai Securities (consol. level) 6 b Bohai Securities (company level) 7 a Caida Securities (consol. level)* * 7 b Caida Securities (company level)* * 8 a Caitong Securities (consol. level)* * 8 b Caitong Securities (company level)* * () ( () ( *# *# 2020 0% 0% 9% 8% -7% 8% 6% 8% 13% 13% 5% 4% 6% 6% 10% 8% 2019 2020 2019 2020 2019 1% 98% 97% 45% 35% 1% 98% 97% 45% 35% 8% 52% 58% 21% 18% 8% 53% 57% 22% 19% 6% 134% 72% 59% 11% 6% 64% 68% 32% 19% 6% 65% 66% 30% 21% 6% 63% 66% 27% 21% -3% 33% 149% - - -3% 31% 145% - - 5% 55% 56% 16% 12% 5% 60% 54% 18% 13% 7% 65% 55% 36% 30% 7% 61% 50% 39% 33% 9% 57% 55% 18% 16% 7% 57% 53% 26% 26% 2020 27% 2019 7% 2020 1% 27% 7% 1% 18% 20% 8% 20% 21% 8% 0% 8% 0% 0% 0% 0% 9% 7% 25% 9% 8% 24% - - - - - - 5% 6% 13% 15% 9% 12% 15% 16% 11% 13% 8% 12% 2% 0% 2% 2% 18% 0% 2019 4% 4% 9% 7% 0% 0% 25% 26% - 4% 0% 1% 1% 22% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 156 Investment income/ Operating income / Growth rate Growth/ Reduction in net brokerage commission income Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth Growth/ Reduction in net profit before tax in net profit after tax Debt to equity ratio 2020 9% 2019 30% 2020 16% 2019 15% 2020 280% 2019 -48% 2020 -66% 2019 -28% 2020 -72% 2019 -18% 2020 -48% 2019 108% 2020 -68% 2020 199% 2019 270% 9% 27% 16% 15% 280% -48% -66% -28% -69% -20% -48% 108% -68% 195% 258% 10% 15% 53% 42% 25% 211% 26% 122% -9% -21% 57% 170% 56% 208% 215% 8% 14% 55% 42% 25% 211% 41% 115% -24% -27% 45% 156% 44% 217% 215% -82% 6% 113% 15% -100% 8% - - -704% -3150% -150% 71% -205% 108% 41% 16% 9% 112% 8% - - - - 128% -1033% 45% 157% 45% 19% 20% 7% 12% 60% 16% 41% 7% 13% -20% -31% 22% 10% 11% 11% 260% 279% 13% 11% 60% 22% 41% 7% 13% -21% 35% 14% 30% 9% 37% 215% 225% 69% 78% - - - - - -7% 217% -377% 533% 115% 553% 29% 89% 42% -31% - - - - - -8% -535% -244% 533% 65% 553% 8% 42% 82% 85% 40% 40% 29% 33% 56% 59% 34% 33% 29% 34% 41% 41% 35% 34% 47% 44% 31% -64% 102% -51% 30% -64% 101% - 24% 31% 58% 180% 26% 31% 58% 151% 24% 43% 97% 11% 25% 43% 94% - -8% - 83% 40% 71% - 60% 44% 32% 38% 34% 37% 12% 10% 100% 18% 195% 162% 19% -13% 65% -3% 189% 153% 42% -12% 694% -13% 338% 295% 45% -13% 739% -13% 322% 279% -5% 25% 155% 22% 312% 204% -9% 32% 129% 26% 333% 212% 157 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Caitong Securities 9 x Asset management Co., Ltd. 10 a Capital Securities (consol. level) 10 b Capital Securities (company level) Central China 11 a Securities (consol. level)* * Central China 11 b Securities (company level)* * 12 a Century Securities (consol. level) 12 b Century Securities (company level) 13 x Changjiang Financing Services Co. Changjiang 14 a Securities (consol. level)* * Changjiang 14 b Securities (company level)* * Changjiang 15 a Securities Asset Management Co., Ltd. (consol. level) Changjiang 15 b Securities Asset Management Co., Ltd. (company level) 16 a Chasing securities co., ltd (consol. level) Chasing securities 16 b co., ltd (company level) CICC Wealth 17 a Management(consol. level) CICC Wealth 17 b Management (company level) Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 22% 24% 74% 75% 0% 0% 0% 0% 95% 97% 9% 10% 52% 56% 13% 12% 16% 17% 22% 12% 8% 10% 52% 56% 13% 12% 18% 18% 23% 12% 1% 1% 95% 95% 25% 22% 7% 10% 2% 3% 2% 3% 87% 77% 41% 28% 12% 14% 2% 3% 3% -2% 82% 120% 35% 51% 3% 1% 2% 1% 3% -2% 82% 120% 35% 52% 3% 1% 2% 1% 20% 36% 71% 69% 0% 0% 93% 94% 0% 0% 7% 6% 63% 67% 39% 28% 10% 12% 4% 6% 7% 9% 62% 54% 45% 29% 5% 6% 0% 0% 8% 9% 34% 42% 0% 0% 0% 0% 92% 83% 8% 9% 34% 42% 0% 0% 0% 0% 96% 83% 6% 6% 66% 65% 43% 34% 15% 17% 3% 5% 6% 6% 60% 63% 36% 31% 17% 19% 5% 6% 11% 4% 58% 66% 46% 51% 0% 1% 1% 2% 10% 6% 60% 64% 48% 44% 0% 1% 2% 4% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 158 Investment income/ Operating income / Growth rate Growth/ Reduction in net brokerage commission income Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth Growth/ Reduction in net profit before tax in net profit after tax Debt to equity ratio 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 1% 1% - - - - 12% 75% -9% -29% 18% 184% 18% 84% 69% 40% 41% 32% 34% 31% 33% 14% 17% 17% 102% 113% 17% 102% 124% 23% 17% 57% -28% 44% -24% 33% 172% 27% 211% 44% 193% 351% 39% 187% 349% 20% 39% 53% 19% -16% 111% -27% -35% -35% 95% 24% 15% 36% 269% 315% 38% 46% 46% 27% -12% 127% -13% -36% -19% 204% -44% -576% -37% 255% 301% 8% 15% 34% 29% 731% -89% 547% -78% 1% 79% 280% -70% 331% 182% 110% 9% 13% 34% 29% 731% -89% 547% -78% 30% 59% 281% -69% 333% 182% 110% 2% 3% - - -13% 66% - - -27% 220% -20% 941% -19% 69% 58% 24% 29% 57% 22% -8% 56% -19% -12% -8% 9% 21% 844% 32% 359% 288% 28% 36% 61% 27% -2% 35% - - -19% 36% -15% 1304% -17% 351% 281% 14% 14% - - - - 11% -2% 5% 46% 14% 66% 14% 13% 11% 8% 5% - - - - 16% -2% 74% 15% 14% 104% 14% 9% 9% 27% 19% 69% 39% 17% 82% -7% 25% 91% -192% 32% -279% 31% 388% 250% 29% 21% 45% 29% 17% 82% -9% 11% 72% -172% 34% -218% 33% 287% 172% 16% 22% 59% 30% -59% -44% -23% -43% 28% -2% 119% -8% 181% 528% 447% 11% 17% 60% 33% -33% -64% -23% -26% -8% 18% 60% 20% 80% 490% 407% 159 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 China Development 18 a Bank Securities (consol. level) ) 1% -3% 90% 139% 4% 3% 17% 18% 6% 9% China Development 18 b Bank Securities (company level) 1% -3% 89% 140% 4% 3% 17% 18% 6% 9% China Dragon 19 a Securities (consol. level) 3% 2% 63% 79% 30% 18% 7% 6% 1% 1% China Dragon 19 b Securities (company level) 3% 3% 62% 68% 31% 25% 8% 8% 1% 1% China Fortune 20 a Securities (consol. level) 13% 0% 53% 97% 33% 41% 1% 10% 2% 3% China Fortune 20 b Securities (company level) 10% 3% 53% 78% 36% 44% 1% 1% 3% 3% China Galaxy 21 a Securities (consol. level)* * 10% 8% 61% 60% 29% 27% 4% 3% 2% 4% China Galaxy 21 b Securities (company level)* * 9% 7% 43% 48% 42% 36% 6% 4% 0% 0% China International 22 a Capital Corporation (consol. level) *# *# 12% 9% 63% 65% 19% 19% 25% 27% 5% 5% China International 22 b Capital Corporation (company level) *# *# 5% 5% 75% 71% 15% 14% 36% 35% 10% 9% China Merchants 23 a Securities (consol. level)* * 10% 9% 53% 53% 28% 21% 9% 10% 5% 6% China Merchants 23 b Securities (company level)* * China Merchants 24 x Securities Asset management Co., Ltd 10% 7% 47% 50% 33% 27% 11% 12% 0% 0% 19% 20% 21% 17% 0% 0% 0% 0% 90% 88% 25 x China Post Securities 4% 3% 65% 60% 13% 12% 19% 5% 11% 13% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 160 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit after tax Debt to equity ratio 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 70% 16% 29% 15% 0% -11% -28% -60% 355% -80% 129% -177% 126% 176% 134% 71% 17% 31% 15% 0% -11% -29% -63% 363% -80% 131% -179% 129% 176% 134% 29% 18% 55% 27% 6% 90% -13% -53% 44% -27% 56% 116% 45% 93% 92% 32% 28% 43% 29% 6% 97% -11% -60% 31% -22% 33% 1808% 26% 88% 87% 48% 24% 57% 33% -78% -35% 67% -35% 284% 251% 5593% 115% 39399% 300% 272% 45% 30% 64% 39% 88% -36% 67% -35% 205% 182% 322% 4300% 317% 279% 245% 21% 19% 52% 31% 98% -10% -7% -15% 53% -631% 34% 85% 39% 444% 339% 29% 27% 42% 19% 106% -14% - - 31% -2232% 31% 78% 37% 388% 303% 81% 62% 55% 14% 40% 34% 51% 22% 95% 163% 64% 21% 71% 626% 611% 52% 68% 48% 4% 44% 64% 56% 35% 6% 27% 33% 3% 27% 374% 322% 26% 29% 68% 27% 18% 25% 10% -13% 20% 45% 29% 61% 30% 372% 348% 35% 36% 70% 31% 25% 34% - - 35% 52% 47% 58% 50% 365% 343% 4% 5% - - - - 10% -4% -8% 58% 2% 8% 1% 25% 10% 14% 8% 39% 38% 348% 450% 8% 14% 117% -75% 17% 73% 15% 91% 85% 161 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) / Cost/income ratio (Operating expenses/ Operating income) Net brokerage commission income/ Operating income / / Net investment banking commission income/Operating income Net asset management income/Operating income / / China Renaissance 26 a Securities(consol. level) # China Renaissance 26 b Securities(company level) # 27 a China Securities (consol. level)* * 27 b China Securities (company level)* * 28 a Chinalin Securities (consol. level)* * 28 b Chinalin Securities (company level)* * 29 x Chuancai Securities 30 a Cinda Securities (consol. level) 30 b Cinda Securities (company level) ( 31 a CITIC Securities (consol. level)* * 31 b CITIC Securities (company level)* * CITIC Securities 32 a (Shandong) (consol. level) CITIC Securities 32 b (Shandong) (company level) CITIC Securities 33 a South China Company Limited (consol. level) CITIC Securities 33 b South China Company Limited (company level) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 -3% 2% 133% 74% 5% 2% 17% 23% 2% 2% -5% 1% 229% 94% 9% 3% 30% 30% 6% 4% 15% 11% 48% 48% 21% 21% 25% 27% 4% 6% 14% 11% 45% 45% 22% 21% 29% 28% 5% 7% 14% 9% 39% 53% 30% 25% 9% 9% 3% 8% 13% 9% 42% 54% 33% 26% 10% 9% 4% 8% -5% -7% 127% 135% 24% 28% 20% 21% 28% 12% 8% 2% 70% 86% 28% 30% 18% 12% 4% 4% 8% 1% 66% 93% 32% 34% 23% 16% 6% 5% 9% 8% 62% 61% 21% 17% 13% 10% 15% 13% 9% 9% 53% 44% 23% 17% 18% 15% 8% 6% 8% 6% 61% 60% 65% 50% 0% 0% 0% 0% 8% 6% 61% 61% 63% 52% 0% 0% 0% 0% 1% -4% 77% 114% 33% 8% 4% 3% 8% 3% 1% -3% 78% 144% 34% 41% 4% 17% 8% 15% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 162 Investment income/ Operating income / Growth rate Growth/ Reduction in net brokerage commission income Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 70% 13% 72% - -43% 117% -33% -25% 330% -36% -185% 215% -230% 76% 7% 73% 19% 76% - -43% 117% -20% 13% 118% -2% -806% 131% -946% 71% 1% 33% 20% 70% 24% 59% 18% 12% 15% 177% 92% 69% 77% 72% 445% 402% 35% 23% 69% 26% 59% 24% 7% 23% 141% 126% 58% 81% 61% 425% 386% 12% 28% 76% 39% 44% -60% -40% -18% -34% -16% 90% 21% 84% 312% 209% 12% 28% 76% 39% 44% -60% -40% -18% -38% -14% 72% 19% 67% 317% 243% 33% 35% -16% 9% -12% -25% 122% 32% -10% -36% 27% -482% 28% 115% 172% 20% 17% 31% 26% 102% -28% 71% 32% 63% 133% 315% 291% 360% 307% 372% 27% 15% 41% 21% 115% -34% 70% -5% 157% -172% 630% 236% 527% 280% 349% 46% 43% 52% 0% 54% 23% 40% -2% 33% 165% 20% 36% 23% 466% 379% 75% 51% 69% 11% 52% 36% 49% -7% 81% 95% 3% 43% 5% 413% 352% 7% 23% 75% 27% - - - - -56% 4950% 36% 16% 36% 299% 207% 11% 24% 75% 27% - - - - -34% 4950% 46% 18% 50% 299% 209% 6% 16% 29% 31% -63% -34% -23% 155% -89% -50% 123% 30% 126% 109% 192% 2% 82% 29% 31% -63% -34% -25% 213% -96% -39% 130% 5% 130% 109% 163% 163 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) / Cost/income ratio (Operating expenses/ Operating income) Net brokerage commission income/ Operating income / / Net investment banking commission income/Operating income Net asset management income/Operating income / / Credit Suisse Securties# 34 x (formerly known as Credit Suisse Founder Securities) 35 a Daton Securities (consol. level) 35 b Daton Securities (company level) Datong Securities 36 a Brokerage (consol. level) Datong Securities 36 b Brokerage (company level) Dongguan 37 a Securities (consol. level) Dongguan 37 b Securities (company level) 38 a Donghai Securities (consol. level) 38 b Donghai Securities (company level) Dongxing 39 a Securities (consol. level)* Dongxing 39 b Securities (company level)* Dongzheng 40 x Ronghui Securities Asset management East Asia Qianhai 41 a Securities (consol. level)# East Asia Qianhai 41 b Securities (company level)# Eastmoney 42 a Securities (consol. level) Eastmoney 42 b Securities (company level) # * * # # 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 1% -5% 94% 134% 67% 46% 25% 30% 0% 0% 4% 3% 48% 55% 39% 33% 1% 1% 2% 2% 4% 4% 46% 51% 40% 33% 1% 1% 2% 3% 8% 2% 68% 90% 49% 52% 14% 5% 4% 6% 9% 2% 66% 88% 49% 52% 14% 5% 4% 7% 12% 10% 66% 60% 40% 42% 9% 15% 3% 3% 12% 10% 58% 59% 49% 42% 12% 16% 3% 3% 5% 1% 68% 87% 27% 28% 15% 19% 3% 4% 4% 2% 75% 87% 24% 27% 16% 22% 3% 4% 7% 6% 66% 65% 17% 17% 23% 26% 4% 9% 8% 6% 55% 59% 22% 19% 29% 29% 6% 13% 8% 12% 45% 38% 0% 0% 0% 0% 82% 70% 3% 0% 93% 103% 5% 2% 45% 41% 1% 4% 3% 0% 93% 104% 5% 2% 45% 41% 5% 6% 15% 14% 31% 41% 66% 65% 0% 2% 0% 0% 15% 14% 26% 36% 65% 63% 0% 2% 0% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 164 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 1% 1% 165% 11% 52% -41% - - 19% -93% 131% -10% 128% 5% 25% 0% -41% 2% -35% 30% 31% 22% -36% 24% -36% 0% -23% -33% -100% -467% 0% -31% -33% -106% -585% 26% 17% 57% 68% 27% 13% 72% 70% 75% 72% 12% 12% 46% 29% 377% -46% -9% 600% 56% 8% 385% 400% 372% 385% 393% 12% 12% 48% 30% 377% -46% -9% 600% 56% 9% 335% 233% 315% 379% 386% 4% 6% 45% 31% -7% 143% 18% -16% 2% -62% 27% 222% 27% 530% 459% 5% 8% 46% 34% -7% 143% 11% -15% -21% -63% 25% 212% 24% 528% 461% 40% 25% 33% 16% 11% -11% -7% 2% 124% 40700% 228% 60% 625% 371% 337% 26% 8% 33% 21% 12% -3% 1% -5% 404% 633% 174% 30% 139% 279% 212% 32% 15% 44% 14% 30% 66% -43% -19% 215% -74% 34% 22% 26% 308% 281% 28% -2% 44% 15% 32% 70% -42% -14% -1866% -105% 35% 19% 33% 269% 230% -5% -3% - - - - -5% -3% 46% -57% -28% 1218% -27% 4% 4% 40% 26% 509% N/A 162% 181% -36% 350% 274% 5% 2058% -103% 2058% 137% 149% 22% 17% 509% N/A 162% 181% 106% 650% 202% -30% 2058% -103% 2058% 129% 129% 6% 7% 80% 67% -76% 15% 32% -50% 48% 38% 108% 128% 106% 244% 223% 6% 8% 81% 59% -76% 15% 32% -50% 47% 35% 106% 134% 104% 229% 210% 165 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million 43 a Essence Securities (consol. level) 43 b Essence Securities (company level) Essence Securities 44 x Asset Management Co., Ltd. 45 a Everbright Securities (consol. level)*# *# 45 b Everbright Securities (company level)*# Everbright Securities 46 x Asset management Co., Ltd. First Capital 47 a Investment Banking Co., Ltd. (consol. level) First Capital 47 b Investment Banking Co., Ltd. (company. level) First Capital 48 a Securities (consol. level) * First Capital 48 b Securities (company level) * ( 49 x Founder Financing Services Co., Ltd. *# * * 50 a Founder Securities (consol. level)* * 50 b Founder Securities (company level)* * Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 9% 8% 62% 64% 28% 25% 9% 9% 3% 3% 9% 7% 58% 61% 32% 26% 11% 10% 2% 7% 21% N/A 59% N/A - N/A - N/A 94% N/A 5% 1% 65% 72% 23% 25% 13% 14% 9% 12% 9% 2% 43% 89% 27% 24% 19% 17% 0% 0% 34% 30% 35% 43% 0% 0% 0% 0% 94% 93% 19% 5% 63% 82% 0% 0% 88% 85% 0% 0% 19% 5% 63% 82% 0% 0% 88% 85% 0% 0% 7% 6% 68% 73% 13% 11% 14% 16% 22% 29% 6% 4% 67% 74% 19% 17% 7% 12% 12% 23% 3% 0% 84% 94% 0% 0% 84% 79% 0% 0% 3% 3% 79% 83% 55% 42% 9% 8% 3% 5% 2% 3% 81% 74% 58% 45% 1% 1% 4% 10% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 166 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 19% 10% 45% 26% 29% 85% 15% 21% 141% -62% 36% 64% 42% 360% 390% 25% 9% 50% 29% 32% 100% -74% 21% 238% -67% 36% 63% 47% 304% 309% 1% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 27% N/A 18% 21% 46% 14% 44% 30% 21% 32% 30% 113% 228% 300% 255% 330% 316% 28% 21% 48% 21% 47% 36% - - 75% 12% 571% 260% 502% 238% 226% 1% 6% - - - - 20% 33% -72% -8000% 37% 16% 37% 47% 29% 1% 11% - - 53% 123% - - -82% -35% 199% 198% 200% 27% 11% 3% 11% - - 53% 123% - - -56% -35% 199% 216% 200% 27% 11% 36% 26% 46% 23% 8% 63% -8% 29% 62% 9% 51% 566% 51% 182% 274% 48% 31% 45% 25% -23% 29% -36% 53% 90% -19% 67% 117% 69% 173% 273% 4% -1% - -100% 47% 129% - -100% -603% 0% 328% -90% 1920% 10% 7% 17% 29% 51% 23% 31% 50% -22% -1% -35% -34% 37% 50% 22% 205% 246% 17% 23% 55% 55% -6% -28% -47% 7% -9% -51% -16% 10% -32% 167% 192% 167 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / Galaxy Jinhui 51 a Asset management Co., Ltd (consol. level) Galaxy Jinhui 51 b Asset management Co., Ltd (company level) 52 a GF Securities (consol. level)* 52 b GF Securities (company level)* GF Securities 53 a Asset management (Guangdong) (consol. Level) GF Securities 53 b Asset management (Guangdong) (company level) Golden Sun 54 a Securities (consol. level) Golden Sun 54 b Securities (company level) Golden Sun 55 x Securities Asset management Co., Ltd. Goldman Sachs 56 x Gao Hua Securities # Goldstate 57 a Securities (consol. level) Goldstate 57 b Securities (company level) Great Wall Glory 58 a Securities (consol. level) Great Wall Glory 58 b Securities (company level) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 7% 4% 78% 89% 0% 0% 0% 0% 93% 91% 7% 4% 77% 88% 0% 0% 0% 0% 99% 100% * 11% 9% 53% 53% 23% 18% 2% 6% 23% 17% * 9% 8% 47% 47% 36% 28% 3% 10% 0% 0% 16% 18% 29% 30% 0% 0% 0% 0% 72% 71% 16% 18% 28% 30% 0% 0% 0% 0% 73% 77% 1% 3% 94% 78% 49% 28% 8% 8% 4% 4% 2% 4% 88% 73% 51% 30% 8% 9% 0% 0% -14% -5% 172% 133% 0% 0% 0% 0% 82% 84% # 3% 4% 81% 83% 0% 0% 2% 16% 0% 0% 1% 4% 88% 70% 16% 12% 4% 5% 3% 4% 0% 3% 94% 62% 26% 20% 6% 8% 5% 6% 1% -8% 88% 160% 20% 14% 5% 16% 15% 14% 3% 0% 73% 99% 20% 13% 6% 17% 17% 14% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 168 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 9% 2% - - - - -10% -17% 278% 50% 75% -13% 74% 49% 46% -3% 0% - - - - -9% -17% 892% -122% 80% -14% 81% 9% 10% 25% 31% 26% 35% 57% 58% 22% -55% 26% -58% 18% 20% 69% - 4% 18% 80% 32% 71% 33% 347% 319% - 7% 77% 22% 54% 24% 364% 326% 18% 35% - - - - -1% 10% -49% -18% -2% 2% -2% 10% 130% 13% 6% - - - - -4% 1% 108% -8% 4% 3% 3% 10% 10% 20% 17% 77% 56% -8% 160% -15% -25% 18% -4% -75% -256% -79% 180% 199% 20% 18% 76% 79% -8% 166% - - 17% -5% -59% -257% -56% 166% 199% 15% 9% - - - - -17% -27% 34% -10% -85% -210% -138% 4% 4% 0% 0% - - -89% 8% - - -46% -67% -7% -7% -12% 15% 15% 22% 22% 34% 23% -28% -12% -22% -25% -1% 42% -61% 80% -58% 169% 169% 33% 34% 34% 23% -28% -12% -22% -25% -2% 41% -84% 102% -81% 165% 168% 23% 32% 44% 31% -67% 88% 13% -21% -27% -87% 122% -340% 117% 214% 197% 11% 7% 50% 27% -67% 88% 12% -28% 57% -68% 970% -89% 977% 183% 164% 169 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) Net brokerage commission income/ Operating income Net investment banking commission income/Operating income Net asset management income/Operating income / / / / / Great Wall 59 a Securities (consol. level)* * Great Wall 59 b Securities (company level)* * 60 a GuoDu Securities (consol. level) 60 b GuoDu Securities (company level) 61 a Guolian Securities (consol. level) * * 61 b Guolian Securities (company level) * * 62 a Guorong Securities (consol. level) 62 b Guorong Securities (company level) 63 a Guosen Securities (consol. level) * * 63 b Guosen Securities (company level) * * Guotai Junan 64 a Securities (consol. level)* * Guotai Junan 64 b Securities (company level)* * Guotai Junan 65 a Securities Asset management(cons ol. level) Guotai Junan 65 b Securities Asset management(comp any level) 66 a Guoyuan Securities (consol. level)* * 66 b Guoyuan Securities (company level)* * 67 a Haitong Securities (consol. level)* * 67 b Haitong Securities (company level)* * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 9% 6% 73% 69% 15% 17% 7% 15% 2% 4% 8% 6% 55% 63% 24% 20% 12% 19% 3% 5% 9% 6% 43% 54% 22% 18% 9% 11% 2% 3% 9% 6% 41% 54% 23% 19% 10% 12% 2% 3% 6% 7% 58% 58% 28% 22% 15% 15% 4% 4% 6% 6% 52% 52% 33% 27% 2% 1% 5% 5% 2% 1% 85% 97% 20% 14% 36% 35% 8% 6% 3% 1% 82% 96% 14% 9% 42% 39% 9% 7% 10% 9% 54% 54% 34% 29% 10% 10% 1% 2% 10% 9% 49% 48% 38% 32% 11% 11% 2% 2% 8% 6% 58% 62% 24% 19% 11% 9% 4% 6% 7% 7% 49% 47% 36% 26% 15% 9% 0% 0% 13% 15% 58% 57% 0% 0% 0% 0% 77% 85% 13% 15% 58% 57% 0% 0% 0% 0% 77% 85% 5% 4% 61% 65% 22% 21% 14% 13% 2% 4% 4% 2% 61% 73% 24% 25% 16% 16% 2% 6% 8% 8% 58% 61% 14% 10% 13% 10% 9% 7% 6% 6% 47% 45% 26% 19% 21% 14% 0% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 170 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 28% 27% 55% 24% -24% 24% -34% -14% 84% -13% 52% 76% 51% 290% 241% 49% 31% 51% 26% -24% 24% -34% -13% 93% -15% 49% 74% 49% 277% 230% 53% 51% 32% 38% 31% 40% 26% 30% 28% 36% 13% 16% 17% 19% 32% 32% 46% 48% 46% 46% 16% 27% 57% 57% 12% -1% 511% -42% -49% 124% 159% 48% -395% 56% 226% 218% 20% -1% 511% -42% -49% 75% 712% 54% -348% 59% 221% 214% 22% 12% 28% 10% 7% 175% -1035% 15% 853% 13% 336% 252% 22% 50% -47% 10% 1% 173% 85% 17% 284% 17% 331% 240% 17% -11% 80% 0% 19% 54% -51% 324% 400% 286% 270% 254% 26% -10% 88% -1% 33% 71% -51% 273% 147% 258% 178% 188% 26% 33% 30% 17% -5% 9% 63% 34% 45% 35% 274% 299% 28% 32% 33% 11% -3% 26% 39% 32% 54% 35% 262% 282% 25% 24% 50% 29% 44% 29% -7% 11% 20% 3% 30% 23% 30% 381% 283% 22% 34% 47% 23% 69% 25% - - -35% 2% 0% 26% -5% 298% 218% 10% 7% - - - - -1% 13% 56% -42% 4% 24% -2% 26% 51% 10% 7% - - - - -1% 13% 52% -39% 4% 23% -2% 26% 48% 22% 24% 27% 39% 16% 9% 27% 38% 48% 45% 46% 50% 24% 27% 19% 19% 55% 58% 43% 74% 37% -30% 36% -37% 7% 41% 12% - 22% 92% -68% 51% 17% 305% -66% 101% 24% 12% 67% 14% - 15% 31% 5% 38% 50% 193% 235% 14% 104% 168% 185% 83% 14% 313% 351% 30% 8% 189% 201% 171 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million 68 x Hengtai changcai Securities 69 a Hengtai Securities (consol. level) * * 69 b Hengtai Securities (company level) * * 70 a Hongta Securities (consol. level)* * 70 b Hongta Securities (company level)* * 71 a Hongxin Securities (consol. level) 71 b Hongxin Securities (company level) 72 x HSBC Qianhai Securities# # 73 a Huaan Securities (consol. level)* * 73 b Huaan Securities (company level)* * Huachuang 74 a Securities (consol. level) Huachuang 74 b Securities (company level) 75 a Huafu Securities (consol. level) 75 b Huafu Securities (company level) 76 a Huajin Securities (consol. level) 76 b Huajin Securities (company level) 77 a Huarong Securities (consol. level) 77 b Huarong Securities (company level) 78 a Huatai Securities (consol. level)* * 78 b Huatai Securities (company level)* * Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) Net brokerage commission income/ Operating income Net investment banking commission income/Operating income Net asset management income/Operating income / / / / / 2020 2019 2020 9% 9% 79% 2019 2020 2019 2020 2019 2020 2019 81% 0% 0% 94% 95% 0% 0% 5% 7% 80% 68% 34% 22% 11% 10% 2% 1% 6% 5% 71% 69% 42% 31% 1% 2% 2% 2% 10% 7% 67% 45% 4% 8% 3% 3% 2% 4% 8% 6% 37% 38% 10% 10% 7% 4% 1% 0% 5% 8% 80% 69% 42% 27% 24% 19% 15% 15% 5% 8% 80% 69% 42% 27% 24% 19% 15% 16% -11% -13% 152% 195% 9% 5% 26% 4% 0% 0% 9% 9% 51% 54% 30% 22% 5% 6% 9% 3% 8% 8% 49% 55% 31% 24% 5% 7% 13% 6% 6% 5% 71% 71% 27% 25% 13% 10% 4% 6% 5% 10% 5% 2% 2% N/A N/A 8% 5% 3% 74% 77% 29% 28% 14% 11% 6% 60% 7% 83% 5% 84% 5% 86% 0% N/A 0% N/A 8% 57% 6% 57% 64% 22% 20% 69% 39% 26% 72% 9% 5% 73% 10% 5% 99% N/A 7% 105% N/A 17% 53% 21% 17% 47% 38% 27% 6% 10% 47% 49% N/A N/A 12% 3% 7% 10% 24% 25% 7% 18% 8% 2% 5% 7% 8% 11% 7% 5% 4% 3% 6% 3% N/A 2% N/A 33% 9% 11% 0% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 172 Investment income/ Operating income / Growth rate Growth/ Reduction in net brokerage commission income Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 0% 0% - - 2% 160% - - - - 9% 273% 8% 38% 33% 33% 24% 35% 23% -1% 114% 0% -21% 20% -518% -39% 219% -37% 256% 179% 38% 28% 29% 28% -28% -11% 26% -28% 32% -722% 8% 179% 11% 257% 176% 51% 74% 34% 27% 121% 40% 51% 17% 86% 268% 65% 118% 71% 161% 234% 114% 84% 35% 27% 121% 40% 201% -11% 82% 210% 38% 70% 44% 152% 232% 23% 26% 42% 28% 16% 49% -12% 86% -21% 24% -41% 55% -41% 285% 396% 21% 26% 42% 28% 16% 49% -12% 80% -27% 13% -41% 50% -42% 269% 361% 4% 0% 126% 400% 165% N/A N/A N/A N/A N/A 176% -47% 24% 23% 16% 41% 32% 42% 26% -20% 142% 175% 22% 35% 4% 10% 121% 4% 294% 274% 32% 29% 39% 30% -20% 142% 153% 35% 19% 13% 22% 137% 19% 249% 228% 40% 32% 42% 33% 74% 54% 1% -26% 63% 4% 26% 122% 31% 261% 243% 46% 30% 42% 35% 74% 54% 1% -26% 110% -14% 51% 166% 68% 268% 247% 22% 32% 62% 27% 18% 58% 5% -31% -1% -8% 62% 7% 70% 337% 237% 19% 41% 63% 27% 18% 58% 51% -39% -49% 71% -42% 65% -36% 481% 351% 25% 47% 72% 38% 60% 44% - -3% -56% 2% -53% 123% -54% 191% 227% 43% 35% 72% 38% 60% 44% - 0% -2% -5% -59% 126% -60% 166% 182% N/A 24% N/A 13% N/A -26% N/A -38% N/A 27% N/A 103% N/A N/A 444% N/A 7% N/A 13% N/A -26% N/A -20% N/A -134% N/A 94% N/A N/A 253% 54% 40% 57% 21% 87% 0% 7% 12% 74% 309% 17% 80% 20% 442% 347% 57% 43% 59% 25% 41% 56% - - 49% 91% -8% 30% -6% 368% 283% 173 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Huatai Securities 79 a (Shanghai) Asset management Co., Ltd. (consol. level) Huatai Securities (Shanghai) Asset 79 b management Co., Ltd. (company level) 80 x Huatai United Securities 81 a Huaxi Securities (consol. level)* * 81 b Huaxi Securities (company level)* * 82 x Huaying Securities 83 a Hwabao Securities (consol. level) 83 b Hwabao Securities (company level) Industrial Asset 84 a management Co., Ltd (consol. level) Industrial Asset 84 b management Co., Ltd (company. level) 85 a Industrial Securities (consol. level)* * 85 b Industrial Securities (company)* * J.P. Morgan 86 x Securities (China) Company Limited # # 87 a Jianghai Securities (consol. level) 87 b Jianghai Securities (company level) Jinyuan President 88 x Securities Co., Ltd. # # 89 a JZ Securities (consol. level) 89 b JZ Securities (company level) Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 15% 21% 41% 36% 0% 0% 0% 0% 55% 54% 16% 20% 34% 33% 0% 0% 0% 0% 80% 69% 16% 10% 73% 72% 0% 0% 93% 85% 0% 0% 9% 8% 48% 52% 36% 25% 10% 13% 2% 2% 9% 7% 49% 54% 38% 26% 10% 14% 3% 2% 6% 4% 76% 82% 0% 0% 89% 84% 0% 0% 3% 3% 77% 78% 36% 24% 1% 0% 8% 7% 3% 3% 78% 75% 36% 24% 1% 0% 9% 6% 6% 9% 52% 53% 0% 0% 0% 0% 59% 102% 6% 9% 58% 52% 0% 0% 1% 0% 75% 107% 12% 5% 65% 81% 16% 11% 8% 5% 1% 2% 9% 6% 55% 67% 30% 21% 15% 9% 0% 0% -29% -12% 185% 5750% 0% - 2% - 0% 0% 1% 2% 92% 88% 18% 16% 22% 25% 2% 7% 1% 2% 97% 88% 18% 15% 24% 26% 2% 8% -3% N/A 344% N/A 0% N/A 7% N/A 0% N/A 4% 1% 74% 93% 8% 10% 32% 34% 10% 13% -2% 0% 124% 99% 12% 9% 59% 40% 16% 14% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 174 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 58% 35% - - - - 2% -10% 58% 76% -10% -3% -12% 236% 484% 12% 5% - - - - 13% 2% 113% -20% -6% 0% -6% 20% 21% 5% 22% 26% 3% 7% 6% 4% 21% 20% 8% 10% 10% - - 87% -1% 70% 33% -14% 211% 71% 36% -14% 211% - - 28% 38% 64% -13% 132% -75% 64% -13% 132% -75% - - 120% -45% 33% -39% 25% 4% 28% -37% 59% -3% - - -58% 40% 44% 0% -22% -83% 44% -4% -32% -83% 72% -36% 32% 67% 31% 67% 67% 14% 13% 240% -8% 775% 71% 87% 60% 33% 261% 244% 32% 256% 239% 66% 14% 13% 14% 220% 223% -5% 217% 222% 62% 27% - - - - -44% -2% 122% -384% -26% 7% -52% 108% 194% 19% -8% - - - - -41% -2% -312% -171% -26% -8% -52% 46% 78% 29% 32% 18% 31% 78% 82% 16% 85% -11% -52% 19% 107% -6% - 3% 97% -9% 134% 303% 139% 343% 360% - 29% -42% 72% 152% 64% 311% 303% - - - - - - - - - - -62% - -110% 23% 11% 38% 35% 20% 19% 36% 37% 22% 25% 4% 20% -65% -15% 130% -68% -24% -213% -29% 179% 255% 4% 20% -65% -15% 108% -70% -73% -201% -67% 180% 251% 48% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2% N/A 17% 3% 4% -3% 47% 19% 4% 11% 16% 19% 4% -6% -36% 391% -96% 373% 400% 429% 74% 135% 4% -7% -40% -52% -96% -1794% 0% -1100% 66% 125% 175 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million 90 a Kaiyuan Securities (consol. level) 90 b Kaiyuan Securities (company level) 91 x Kington Securities 92 a Lianchu Securities 92 b Lianchu Securities Minmetals 93 a Securities Brokerage (consol. level) Minmetals 93 b Securities Brokerage (company level) Minsheng 94 a Securities (consol. level) Minsheng 94 b Securities ( (company level) 95 x Morgan Stanley Huaxin Securities # # 96 a Nanjing Securities (consol. level)* * 96 b Nanjing Securities (company level)* * New Times 97 a Securities (consol. level) New Times 97 b Securities (company level) Nomura Orient 98 x International Securities Co., Ltd. # # Northeast 99 a Securities (consol. level)* * Northeast 99 b Securities (company level)* * 100 x N-Securities Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio Net brokerage (Operating commission expenses/ income/ Operating Operating income) income Net investment banking commission income/Operating income Net asset management income/Operating income / / / / / 2020 7% 2019 2020 6% 71% 2019 2020 2019 71% 16% 9% 2020 36% 2019 41% 2020 8% 2019 14% 7% 7% 69% 70% 11% 9% 40% 43% 8% 14% 1% 1% 62% 75% 1% 0% 0% 0% 0% 0% 1% 2% 93% 84% 12% 8% 11% 8% 3% 2% 1% 2% 100% 86% 13% 8% 12% 8% 4% 2% 5% 4% 66% 69% 5% 5% 36% 20% 8% 10% 5% 4% 66% 69% 5% 5% 36% 20% 8% 10% 7% 5% 64% 76% 15% 15% 44% 26% 2% 2% 6% 2% 68% 84% 17% 19% 52% 35% 2% 2% 0% -18% 99% 203% 0% 0% 45% 75% 0% 0% 6% 7% 56% 57% 28% 27% 11% 14% 2% 3% 6% 6% 54% 56% 25% 21% 12% 17% 2% 4% 0% 4% 88% 69% 21% 15% 3% 1% 4% 3% 2% 3% 74% 63% 42% 27% 7% 3% 7% 6% -4% -3% 160% 195% 17% - - - 0% - 9% 6% 73% 84% 15% 9% 4% 4% 2% 2% 9% 5% 54% 68% 26% 23% 8% 12% 0% 0% 2% 45% 209% 102% 70% 21% 2% 3% 2% 3% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 176 Investment income/ Operating income / Growth rate Growth/ Reduction in net brokerage commission income Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 17% 2% 136% 47% 21% 29% -25% 53% 1352% -91% 48% 734% 52% 131% 147% 18% 0% 61% 82% 21% 29% -25% 54% -7754% -102% 46% 888% 48% 125% 141% 0% 36% 51% 0% 30% 29% 50% 50% 29% 29% - - 39% -39% 39% -39% - - 45% -33% 45% -33% - - 27% -50% 27% 0% 1% 15% -46% -61% 181% -60% 189% 203% 61% -48% -108% 211% -66% 189% 203% 22% 26% 52% 25% 135% 202% 3% 166% 14% -38% 44% 32% 43% 112% 164% 23% 26% 52% 25% 134% 201% 3% 166% 13% -38% 43% 31% 42% 116% 170% 36% 38% 42% 29% 131% 47% 19% -8% 27% 65% 89% 413% 73% 267% 293% 36% 45% 40% 23% 131% 55% 15% -8% 23% 74% 197% 210% 169% 264% 288% 0% 0% - - 51% -31% - - - - 103% 9% 101% 22% 11% 16% 10% 9% 65% -15% 150% -34% 28% 83% -32% 10% 207% 14% 180% 222% 18% 11% 36% 23% -14% 147% -32% 29% 89% -38% 21% 160% 27% 177% 221% 22% 24% 17% 19% 95% -32% -12% -8% -24% -27% -68% 43% -92% 74% 122% 51% 48% 17% 19% 95% -32% -12% -12% -22% -31% -48% -10% -43% 77% 128% 75% - - - - - - - - - -28% - -28% 76% 5% 29% 15% 36% 11% -15% 46% -5% -4% 64% -17% 42% 327% 41% 294% 322% 47% 31% 46% 26% -15% 46% - - 93% -10% 83% 1028% 74% 311% 344% 0% 28% 14% 10% -76% -74% -79% -90% -100% -116% 90% -84% 95% -120% -174% 177 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million 101 a Orient Securities (consol. level)* * 101 b Orient Securities (company level)* * Orient Securities 102 x Asset management Co., Ltd. Orient Securities 103 x Investment Banking Co.,Ltd 104 a Pacific Securities (consol. level)* * 104 b Pacific Securities (company level)* * 105 a Ping'an Securities (consol. level) 105 b Ping'an Securities (company level) 106 a Sealand Securities (consol. level)* * 106 b Sealand Securities (company level)* * 107 x Shanghai Haitong Securities Asset management Co., Ltd. 108 a Shanghai Securities (consol. level) 108 b Shanghai Securities (company level) 109 a Shanxi Securities (consol. level)* * 109 b Shanxi Securities (company level)* * Shengang Securities 110 a Company Limited (consol. level)# # Shengang Securities 110 b Company Limited (company level)# # 111 x Shenwan Hongyuan Financing Services Co. Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio Net brokerage (Operating commission expenses/ income/ Operating Operating income) income Net investment banking commission income/Operating income Net asset management income/Operating income / / / / / 2020 5% 2019 2020 5% 88% 2019 2020 2019 86% 11% 8% 2020 7% 2019 6% 2020 11% 2019 9% 3% 5% 88% 64% 23% 19% 7% 5% 0% 0% 35% 27% 64% 60% 0% 0% 0% 0% 85% 91% 5% 3% 90% 94% 0% 0% 93% 92% 0% 0% -8% 5% 159% 67% 42% 19% 17% 6% 11% 8% -7% 4% 150% 68% 41% 19% 17% 6% 11% 9% 9% 8% 71% 74% 29% 21% 11% 10% 3% 4% 9% 8% 59% 59% 40% 32% 16% 15% 5% 5% 5% 4% 77% 80% 18% 15% 9% 10% 8% 8% 4% 3% 74% 80% 20% 18% 14% 15% 11% 12% 17% 19% 48% 36% 0% 0% 0% 0% 78% 70% 6% 3% 65% 76% 42% 34% 3% 4% 2% 3% 6% 3% 61% 73% 40% 33% 3% 4% 2% 4% 5% 4% 70% 87% 16% 7% 20% 11% 2% 2% 6% 5% 49% 58% 22% 20% 12% 14% 4% 6% 8% 2% 71% 90% 2% 3% 44% 27% 3% 2% 8% 2% 71% 90% 2% 3% 44% 27% 3% 2% 19% 8% 53% 75% 0% 0% 91% 88% 0% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 178 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 22% 18% 70% 14% 51% -8% 37% -24% 47% 32% -2% 115% 10% 383% 387% 51% 45% 66% 17% 77% -3% - - 52% 74% -54% 750% -36% 311% 335% 1% 1% - - - - 38% -26% -47% -28% 26% -32% 35% 71% 54% 3% 4% - - 58% -15% - - 39% -16% 85% -68% 76% 68% 36% 50% 39% 50% 11% 88% -33% -11% -3% -14% 74% -271% -138% -259% 135% 194% 51% 38% 50% 11% 90% -31% -11% -3% -4% 47% -268% -138% -261% 135% 196% 9% 15% 62% 50% 32% 32% 7% -7% -29% -14% 30% 48% 31% 489% 339% 13% 24% 61% 53% 34% 35% 17% -7% -26% -20% 27% 29% 27% 473% 332% 31% 21% 51% 4% 18% 37% 14% 55% 82% -39% 45% 405% 49% 281% 357% 42% 29% 51% 24% 18% 37% 21% 54% 86% -40% 67% 5763% 72% 261% 357% 22% 6% - - - - 45% 40% 410% 66% 1% 46% 1% 88% 98% 21% 17% 38% 22% -18% 235% -23% -5% 40% -1243% 58% 316% 54% 495% 362% 18% 14% 39% 24% -18% 235% -24% -9% 49% -284% 57% 314% 54% 406% 304% 51% 21% 21% 21% 14% 86% -14% 8% 59% -29% 51% 132% 47% 258% 321% 66% 62% 52% 23% 22% 268% -19% 23% 46% -1% 67% 125% 61% 230% 299% 29% 34% 48% 50% 197% 46% 194% 75% 53% 744% 453% -120% 341% 116% 132% 29% 34% 48% 50% 197% 46% 194% 75% 53% 744% 450% -120% 339% 116% 132% 3% 8% - - 59% 117% - - -38% 41% 189% 141% 176% 50% 27% 179 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / Shenwan Hongyuan 112 a Securities (consol. level) Shenwan Hongyuan 112 b Securities (company level) 113 x Shenwan Hongyuan Securities (Western) 114 a Sinolink Securities (consol. level)* * 114 b Sinolink Securities (company level)* * 115 a Soochow Securities (consol. level)* * 115 b Soochow Securities (company level)* * 116 a Southwest Securities (consol. level)* )* 116 b Southwest Securities (company level)* * 117 a Tebon Securities (consol. level) 117 b Tebon Securities (company level) 118 x Tebon Securities Asset Management 119 a TF Securities (consol. level)* * 119 b TF Securities (company level)* * Tianfeng (Shanghai ) 120 x Securities Asset management Co., Ltd 121 a UBS Securities (consol. level) # # 121 b UBS Securities (company level) # # 122 a Wanhe Securities (consol. Level) 122 B Wanhe Securities (company level) 123 a Wanlian Securities (consol. level) 123 b Wanlian Securities (company level) 2020 10% 11% 9% 9% 8% 7% 6% 5% 3% 1% 1% 3% 3% 5% 3% 3% 1% 2% 5% 5% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies 2019 2020 2019 2020 2019 8% 54% 60% 27% 22% 7% 44% 52% 26% 25% 6% 33% 45% 57% 48% 6% 61% 62% 27% 26% 6% 61% 60% 27% 27% 5% 69% 74% 21% 20% 5% 59% 58% 29% 30% 5% 62% 68% 24% 17% 7% 70% 57% 26% 18% 1% 65% 79% 13% 8% 1% 62% 72% 13% 8% N/A 11% N/A - N/A 2% 81% 90% 18% 15% 3% 86% 85% 22% 19% N/A 73% N/A 0% N/A 1% 85% 99% 44% 35% 0% 85% 99% 45% 36% 2% 81% 69% 21% 15% 2% 80% 69% 22% 16% 4% 54% 60% 28% 25% 4% 54% 61% 30% 26% 2020 7% 3% 0% 27% 29% 15% 23% 8% 8% 13% 17% 23% 28% 0% 23% 24% 11% 11% 7% 8% 2019 7% 4% 0% 21% 22% 12% 19% 8% 8% 17% 20% N/A 19% 26% N/A 16% 16% 4% 4% 10% 10% 2020 6% 8% 0% 2% 2% 2% 2% 1% 1% 20% 14% 22% 19% 24% 93% 0% 0% 1% 1% 4% 8% 2019 8% 12% 0% 2% 2% 3% 3% 2% 2% 27% 25% N/A 17% 24% N/A 0% 0% 1% 1% 8% 9% © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 180 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 26% 31% 49% 18% 17% 37% -3% 7% 3% 39% 41% 37% 41% 448% 357% 37% 41% 45% 20% 15% -19% -4% 16% 26% -3% 62% 4% 69% 421% 345% 2% 22% 27% 29% 36% 53% 54% 31% 34% 1% 30% 35% 5% 23% 28% 37% 36% 37% 44% 16% 17% N/A 32% 30% 55% 45% 44% 45% 41% 28% 27% 60% 46% N/A 37% 32% 35% - - - - -58% 100% 59% 27% 55% 131% 87% 15% 85% 25% 18% -28% 35% 17% 42% 25% 44% 200% 141% 18% 89% 26% 17% -28% 36% 37% 43% 28% 44% 187% 130% 30% 73% 0% -14% 1% 13% -4% 70% 255% 75% 274% 353% 30% 74% 0% -26% -31% 43% -22% 38% 219% 44% 242% 304% 18% -15% -40% -46% -26% 31% -23% 8% 414% 10% 216% 237% 18% -13% -39% -48% -35% 9% -6% -40% 1087% -40% 206% 222% -7% -25% 41% -26% -50% 89% -24% 14% -73% 24% 147% 83% -7% -25% 43% -49% -52% 74% -28% -60% -69% -56% 123% 72% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0% N/A 3% 38% 43% 25% 0% 8% 4% 92% 8% 63% 266% 242% 2% 24% 32% 16% 1% 35% 28% -4% 93% 2% 304% 332% 7% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6% N/A 7% 7% 110% 109% 32% 18% 12% 12% 73% 74% 4% 12% 37% 35% 28% 28% 40% 47% -3% 50% -14% - - -34% -2% 462% -3% 50% -14% - - -34% -2% 488% 24% 164% -19% -34% -58% 38% 35% -42% 24% 164% -19% -34% -58% 37% 34% -36% 32% -2% 22% -35% 16% 955% -89% 48% 31% -2% 22% 20% 17% 89% -67% 47% 20% 479% 252% 154% 25% 500% 125% 85% 54% -41% 227% 185% 43% -32% 227% 185% 63% 48% 294% 223% 53% 47% 250% 220% 181 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million 124 a Western Securities (consol. level)* * 124 b Western Securities (company level)* * 125 a Xiangcai Securities (consol. level) 125 b Xiangcai Securities (company level) 126 a Yingda Securities (consol. level) 126 b Yingda Securities (company level) 127 a Yintai Securities (consol. level) 127 b Yintai Securities (company level) 128 x Yongxing Asset management 129 a Yongxing Securities (consol. level) 129 b Yongxing Securities (company level) Yuekai Securities 130 a Co., Ltd (consol. level) Yuekai Securities 130 b Co., Ltd (company level) Zhejiang Zheshang 131 a Securities Asset management Co., Ltd. (consol. level) Zhejiang Zheshang 131 b Securities Asset management Co., Ltd. (company level) 132 a Zheshang Securities (consol. level)* * 133 b Zheshang Securities (company level)* * 133 x Zhongde Securities # # Performance measures Income components Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) / Cost/income ratio (Operating expenses/ Operating income) Net brokerage commission income/ Operating income / / Net investment banking commission income/Operating income Net asset management income/Operating income / / 2020 5% 2019 2020 4% 71% 2019 2020 2019 80% 20% 18% 2020 2019 10% 9% 2020 0% 2019 1% 5% 4% 57% 70% 29% 22% 15% 11% 1% 1% 6% 5% 60% 63% 41% 33% 7% 8% 3% 8% 7% 5% 55% 66% 42% 32% 7% 7% 4% 8% 6% 4% 57% 76% 26% 21% 2% 17% 6% 6% 6% 4% 55% 76% 25% 19% 2% 19% 6% 7% 7% 5% 44% 58% 33% 25% 1% 2% 0% 0% 5% 4% 50% 60% 40% 27% 1% 2% 0% 0% -5% N/A 318% N/A 0% N/A 0% N/A 0% N/A -10% N/A 203% N/A 4% N/A 0% N/A 0% N/A -9% N/A 200% N/A 4% N/A 0% N/A 0% N/A 3% 2% 77% 80% 33% 23% 8% 9% 3% 4% 3% 2% 79% 79% 34% 23% 8% 9% 3% 4% 5% 5% 78% 72% - - - - 74% 65% 5% 2% 78% 84% - - - - 84% 76% 10% 7% 80% 77% 14% 16% 10% 6% 3% 5% 8% 8% 58% 55% 37% 32% 25% 11% 0% 0% 3% 2% 86% 89% 0% 0% 90% 90% 0% 0% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 182 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 30% 40% 57% 32% 66% 49% -44% -61% 5% 15% 102% 205% 84% 145% 174% 41% 50% 55% 39% 66% 49% -33% -55% -2% 13% 70% 155% 54% 131% 151% 21% 7% 44% 25% 10% 89% -49% -40% 262% -55% 27% 757% 24% 243% 258% 22% 9% 44% 26% 10% 89% -48% -40% 182% -41% 50% 454% 35% 239% 257% 18% 9% 41% 17% -87% 292% 11% 189% 119% -60% 106% 306% 109% 192% 252% 19% 10% 46% 26% -87% 292% 8% 165% 112% -56% 111% 347% 113% 163% 232% 41% 49% 33% 34% -30% 0% -44% -67% -16% 107% 36% 320% 56% 82% 97% 31% 47% 33% 34% -30% 0% -44% -67% -43% 116% 9% 469% 25% 87% 100% 4% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1% N/A 1% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 30% N/A 1% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 30% N/A 13% 11% 63% 26% -1% 13% -20% -14% 36% -42% 35% 180% 33% 208% 210% 12% 10% 63% 26% -1% 13% -20% -14% 40% -46% 21% 181% 21% 209% 210% 57% 4% - - - - 40% 10% 1870% -53% -5% 1000% -4% 162% 12% 10% 4% - - - - 57% 10% 260% -57% 104% 657% 104% 18% 12% 20% 34% 7% 21% 46% 1% 64% 68% - 28% 228% 28% 228% - 14% 9% 9% 39% 27% - 11% 76% 50% - 9% 115% - 859% -40% 68% 30% 34% 66% 43% 1300% 68% 371% 354% 25% 324% 340% 49% 11% 14% 183 Mainland China Securities Survey 2021 Financial highlights: key ratios RMB million Performance measures Return on Equity (ROE) (Net profit after tax/Average Shareholder's equity) Cost/income ratio (Operating expenses/ Operating income) / / Income components Net brokerage commission income/ Operating income / Net investment banking commission income/Operating income Net asset management income/Operating income / / Zhongshan 134 a Securities (consol. level) Zhongshan 134 b Securities (company level) 135 a Zhongtai Securities (consol. level)* * 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 5% 4% 80% 81% 33% 28% 42% 40% 3% 5% 5% 4% 75% 77% 18% 12% 58% 51% 5% 8% 7% 7% 68% 71% 35% 25% 11% 11% 3% 4% 135 b Zhongtai Securities (company level)* Zhongtai Securities 136 x (Shanghai) Assets management * () 7% 6% 62% 63% 43% 34% 12% 15% 0% 0% 17% 17% 75% 81% 0% 0% 0% 0% 83% 82% 137 a Zhongtian Securities (consol. level) () 5% 4% 61% 66% 30% 25% 2% 1% 1% 1% 137 b Zhongtian Securities (company level) ) ( 5% 4% 59% 65% 28% 24% 2% 1% 1% 2% 138 a ZTF Securities (consol. level) 4% 3% 72% 70% 0% 0% 51% 56% 0% 0% 138 b ZTF Securities (company level) 3% 4% 76% 68% 0% 0% 54% 56% 0% 0% Total (consol.) 8% 6% 63% 66% 23% 19% 12% 11% 7% 7% Total (company) 7% 6% 57% 58% 29% 23% 15% 13% 7% 8% * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 184 Investment income/ Operating income / Growth/ Reduction in net brokerage commission income Growth rate Growth/ Reduction in net investment banking commission income Growth/ Reduction in net asset management income Growth/ Reduction in investment income Growth/ Reduction in net profit before tax Growth in net profit Debt to equity after ratio tax 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2020 2019 32% 44% 30% 59% 15% 26% -39% -22% -20% -17% 19% 353% 11% 250% 337% 26% 24% 45% 40% 15% 26% -39% -20% 10% -6% 13% 686% 5% 189% 202% 16% 18% 48% 24% -2% 55% -15% -19% -4% -21% 16% 101% 13% 407% 319% 16% 17% 52% 28% -1% 65% - - 13% -36% 24% 69% 20% 368% 284% 4% 4% - - - - -6% -12% 11% -20% 21% 158% 19% 69% 79% 43% 39% 30% 10% 228% 300% -27% 14% 22% 388% 23% -272% 27% 174% 155% 45% 39% 25% 22% 228% 300% -31% 29% 23% 391% 21% -269% 23% 151% 137% 14% 2% - - 24% 126% - - 1128% -127% 18% -123% 16% 23% 6% 15% 2% - - 24% 126% - - 1125% -127% -12% -125% -17% 23% 6% 31% 28% 53% 22% 36% 26% 21% 1% 41% 35% 36% 89% 38% 342% 296% 34% 30% 54% 25% 39% 31% 8% 1% 39% 19% 28% 76% 30% 286% 260% 185 Mainland China Securities Survey 2021 Appendix 2 Sector ranking for 2020 Company Name Total Assets (Regulatory Consolidation) Company Name Net profit after tax (Regulatory Consolidation) (RMB Million) (RMB Million) 1 CITIC Securities* 2 Huatai Securities* 3 Guotai Junan Securities* 4 China Merchants Securities* 5 Shenwan Hongyuan Securities 6 Haitong Securities* 7 GF Securities* 8 China Galaxy Securities* China International 9 Capital Corporation*# 10 China Securities* 11 Guosen Securities* 12 Orient Securities* 13 Everbright Securities*# 14 Ping An Securities 15 Essence Securities 16 Zhongtai Securities* 17 Industrial Securities* 18 Changjiang Securities* 19 Founder Securities* 20 Caitong Securities* * * * * * * * *# * * * *# * * * * * 810,258.85 537,742.19 534,353.24 460,490.10 408,281.80 403,638.09 402,601.83 384,185.53 370,147.23 343,096.23 287,695.51 234,198.10 188,229.89 187,992.19 169,876.14 152,137.67 143,981.51 128,367.22 104,924.65 94,811.78 1 CITIC Securities* 2 Guotai Junan Securities* 3 Haitong Securities* 4 Huatai Securities* 5 GF Securities* 6 China Securities* 7 China Merchants Securities* 8 Shenwan Hongyuan Securities 9 China Galaxy Securities* China International 10 Capital Corporation*# 11 Guosen Securities * 12 Industrial Securities* 13 Essence Securities 14 Ping An Securities 15 Eastmoney Securities 16 Orient Securities* 17 Zhongtai Securities* 18 Everbright Securities*# 19 Caitong Securities* 20 Changjiang Securities* * * * * * * * * *# * * * * *# * * 14,902.32 11,122.10 10,875.40 10,822.50 10,038.13 9,509.43 9,491.64 7,852.04 7,243.65 7,207.45 6,615.74 4,003.31 3,514.38 3,064.24 2,960.18 2,722.99 2,525.30 2,334.08 2,291.60 2,085.38 * denotes listed securities company # denotes foreign invested securities company Regulatory Consolidation: Consolidation of securities companies and their securities subsidiaries Consolidation:Group consolidation of securities companies Note1: Net income from securities brokerage business-trading volume of stocks and funds*0.15‰ Sources: Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 186 Company Name 1 Eastmoney Securities 2 China Securities* 3 Chinalin Securities* 4 China Fortune Securities 5 China International Capital Corporation*# 6 Dongguan Securities 7 Industrial Securities* 8 GF Securities* 9 Caitong Securities* 10 Hongta Securities* 11 Shenwan Hongyuan Securities 12 China Merchants Securities* 13 Guosen Securities* 14 China Galaxy Securities* 15 Zheshang Securities* 16 Ping An Securities 17 Huaxi Securities* 18 Essence Securities 19 AVIC Securities 20 Huaan Securities* Return on net capital (Regulatory Consolidation) ( ) Company Name * * *# * * * * * * * * * * (RMB Million) ( ) 15.46% 15.30% 14.31% 13.74% 12.02% 11.61% 11.10% 10.60% 10.23% 10.17% 10.01% 9.95% 9.65% 9.52% 9.51% 9.45% 9.28% 9.25% 9.21% 9.12% 1 China Securities* 2 CITIC Securities* 3 China International Capital Corporation*# 4 Haitong Securities* 5 Guotai Junan Securities* 6 Huatai Securities* 7 China Merchants Securities* 8 Everbright Securities*# 9 Guosen Securities* 10 SINOLINK Securities* 11 Minsheng Securities 12 Orient Securities* 13 Industrial Securities* 14 Ping An Securities 15 Shenwan Hongyuan Securities 16 Dongxing Securities* 17 SooChow Securities* 18 Zheshang Securities* 19 Essence Securities 20 Kaiyuan Securities Income from underwriting and sponsorship business (Regulatory Consolidation) ( * ) (RMB Million) ( ) 5,261.35 * 5,025.91 *# 3,473.24 * 3,332.93 * 2,940.49 * 2,911.75 * 1,892.59 *# 1,860.29 * 1,767.07 * 1,588.21 1,530.56 * 1,420.01 * 1,251.28 1,204.97 1,160.66 * 1,148.69 * 922.68 * 917.23 866.56 823.86 187 Mainland China Securities Survey 2021 Company Name Interest income from margin financing and securities lending business (Regulatory Consolidation) Company Name Income from brokerage business (Regulatory Consolidation) 1 CITIC Securities* 2 Huatai Securities* 3 Guotai Junan Securities* 4 GF Securities* 5 China Galaxy Securities* 6 Shenwan Hongyuan Securities 7 China Merchants Securities* 8 Haitong Securities* 9 Guosen Securities * 10 China Securities* 11 Everbright Securities*# 12 Essence Securities China International 13 Capital Corporation*# 14 Ping An Securities 15 Zhongtai Securities* 16 Changjiang Securities* 17 Founder Securities* 18 Industrial Securities* 19 Eastmoney Securities 20 Caitong Securities* * * * * * * * * * *# *# * * * * * (RMB Million) 6,543.71 5,960.87 5,837.92 4,608.85 4,541.01 4,513.25 4,333.53 3,494.48 3,301.78 2,824.83 2,390.12 2,320.10 2,085.25 1,972.20 1,876.36 1,717.04 1,612.72 1,541.50 1,414.04 1,081.81 1 Guosen Securities* 2 Guotai Junan Securities* 3 China Galaxy Securities* 4 China Merchants Securities* 5 Shenwan Hongyuan Securities 6 GF Securities* 7 Founder Securities* 8 CITIC Securities* 9 China Securities* 10 Ping An Securities China International 11 Capital Corporation*# 12 Everbright Securities*# 13 Huaxi Securities* 14 Zhongtai Securities* 15 Haitong Securities* 16 Essence Securities 17 Eastmoney Securities 18 Western Securities* 19 Dongguan Securities 20 Huaan Securities* * * * * * * * * *# *# * * * * * (RMB Million) 3,267.15 3,064.56 2,471.09 2,122.19 2,074.02 2,015.74 1,713.14 1,560.40 1,188.53 1,132.08 865.15 846.30 834.09 815.29 811.59 765.51 670.15 567.81 517.70 473.94 * denotes listed securities company # denotes foreign invested securities company Regulatory Consolidation: Consolidation of securities companies and their securities subsidiaries Consolidation:Group consolidation of securities companies Note1: Net income from securities brokerage business-trading volume of stocks and funds*0.15‰ Sources: Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 188 Company Name Net captial (Regulatory Consolidation) Company Name Income from financial advisory business (Regulatory Consolidation) 1 Guotai Junan Securities* 2 CITIC Securities* 3 Haitong Securities* 4 Huatai Securities* 5 China Galaxy Securities* 6 Shenwan Hongyuan Securities 7 GF Securities* 8 China Securities* 9 China Merchants Securities* 10 Guosen Securities* China International 11 Capital Corporation*# 12 Everbright Securities*# 13 Orient Securities* 14 Essence Securities 15 Ping An Securities 16 Industrial Securities* 17 Zhongtai Securities* 18 Changjiang Securities* 19 Founder Securities* 20 Western Securities* * * * * * * * * * *# *# * * * * * * (RMB Million) 104,838.41 103,586.32 93,208.13 85,760.41 74,813.50 74,178.24 71,449.06 65,034.97 64,963.83 62,923.20 60,458.88 44,721.85 41,563.27 36,117.38 28,416.59 27,660.84 27,037.26 25,073.90 24,830.20 23,272.97 1 CITIC Securities* China International 2 Capital Corporation*# 3 China Securities* 4 Huatai Securities* 5 Guotai Junan Securities* 6 Ping An Securities 7 Shenwan Hongyuan Securities 8 Kaiyuan Securities 9 Haitong Securities* 10 China Merchants Securities* 11 SooChow Securities* 12 Zhongtai Securities* 13 Shengang Securities# 14 Shanxi Securities* 15 Jianghai Securities 16 Dongxing Securities* 17 Great Wall Securities* Minmetals 18 Securities Brokerage 19 Essence Securities 20 TF Securities* * *# * * * * * * * # * * * * (RMB Million) 676.30 669.00 484.43 327.46 293.77 233.53 222.03 207.67 203.63 190.86 163.44 159.18 142.93 141.26 139.80 135.63 135.44 132.21 131.38 124.85 189 Mainland China Securities Survey 2021 Company Name Income from asset management business (Regulatory Consolidation) Company Name Income from investment advisory business (Regulatory Consolidation) 1 Orient Securities* 2 CITIC Securities* 3 Huatai Securities* 4 Guotai Junan Securities* 5 Everbright Securities*# 6 Haitong Securities* 7 GF Securities* 8 Shenwan Hongyuan Securities 9 Caitong Securities* China International 10 Capital Corporation*# 11 China Merchants Securities* 12 China Securities* 13 TF Securities* 14 BOC International (China) Limited*# 15 China Galaxy Securities* 16 Essence Securities 17 Changjiang Securities* 18 Zhongtai Securities* 19 Ping An Securities 20 Huaan Securities* * * * * *# * * * *# * * * *# * * * * (RMB Million) 2,364.57 1,938.77 1,907.40 1,569.28 1,355.32 1,325.27 1,188.31 1,182.74 1,124.98 1,027.18 955.28 839.30 771.06 628.01 512.86 454.24 443.54 387.31 353.15 344.43 1 China Merchants Securities* 2 Ping An Securities 3 CITIC Securities* China International 4 Capital Corporation*# 5 Guotai Junan Securities* 6 Haitong Securities* 7 GF Securities* 8 Orient Securities* 9 Changjiang Securities* 10 Huachuang Securities 11 First Capital Securities* 12 Essence Securities 13 Zhongtai Securities* 14 Shenwan Hongyuan Securities 15 SINOLINK Securities* 16 China Development Bank Securities 17 Central China Securities* 18 HSBC Qianhai Securities# 19 China Galaxy Securities* 20 TF Securities* * * *# * * * * * * * * * # * * (RMB Million) 673.52 322.74 264.50 245.79 236.46 204.93 199.97 161.04 158.62 150.68 133.52 132.68 107.46 94.24 89.97 89.06 81.56 79.70 70.30 64.38 * denotes listed securities company # denotes foreign invested securities company Regulatory Consolidation: Consolidation of securities companies and their securities subsidiaries Consolidation:Group consolidation of securities companies Note1: Net income from securities brokerage business-trading volume of stocks and funds*0.15‰ Sources: Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 190 Company Name Operating income (Consolidation) Company Name Client monies (Regulatory Consolidation) 1 CITIC Securities* 2 Guotai Junan Securities* 3 Huatai Securities* 4 China Securities* 5 China Merchants Securities* 6 Haitong Securities* 7 GF Securities* 8 Shenwan Hongyuan Securities 9 Guosen Securities* China International 10 Capital Corporation*# 11 China Galaxy Securities* 12 Orient Securities* 13 Everbright Securities*# 14 Essence Securities 15 Ping An Securities 16 Industrial Securities* 17 Zhongtai Securities* 18 Changjiang Securities* 19 Founder Securities* 20 Caitong Securities* * * * * * * * * *# * * *# * * * * * (RMB Million) 34,139.52 24,073.08 21,247.24 20,152.77 19,063.38 18,279.48 18,063.46 17,321.63 16,271.09 15,701.29 14,591.40 12,489.36 11,421.12 9,754.45 9,098.92 8,967.43 8,408.30 7,215.22 6,932.55 5,938.95 1 CITIC Securities* 2 Huatai Securities* 3 Guotai Junan Securities* 4 GF Securities* 5 China Galaxy Securities* 6 Shenwan Hongyuan Securities 7 China Merchants Securities* 8 Haitong Securities* 9 China Securities* 10 Guosen Securities* China International 11 Capital Corporation*# 12 Ping An Securities 13 Essence Securities 14 Zhongtai Securities* 15 Everbright Securities*# 16 Eastmoney Securities 17 Industrial Securities* 18 Changjiang Securities* 19 Founder Securities* 20 Orient Securities* * * * * * * * * * *# * *# * * * * (RMB Million) 124,151.58 100,533.50 88,560.63 77,855.52 69,853.81 69,682.95 69,582.59 67,353.43 62,619.90 58,303.22 52,440.85 50,234.63 38,941.15 32,782.97 32,708.90 31,126.61 28,866.77 28,505.92 27,696.75 26,054.21 191 Mainland China Securities Survey 2021 Company Name Investment in IT system (Regulatory Consolidation) 1 Huatai Securities* 2 Guotai Junan Securities* 3 CITIC Securities* 4 China Merchants Securities* 5 Haitong Securities* China International 6 Capital Corporation*# 7 GF Securities* 8 China Securities* 9 Guosen Securities* 10 Ping An Securities 11 Zhongtai Securities* 12 Orient Securities* 13 China Galaxy Securities* 14 Essence Securities 15 Shenwan Hongyuan Securities 16 Industrial Securities* 17 Everbright Securities*# 18 Founder Securities* 19 Eastmoney Securities 20 Caitong Securities* * * * * * *# * * * * * * * *# * * (RMB Million) 1,947.05 1,398.28 1,373.95 1,032.63 960.78 953.45 942.94 824.46 811.67 809.79 783.36 776.92 746.97 675.40 630.45 520.60 502.32 468.44 452.13 383.64 * denotes listed securities company # denotes foreign invested securities company Regulatory Consolidation: Consolidation of securities companies and their securities subsidiaries Consolidation:Group consolidation of securities companies Note1: Net income from securities brokerage business-trading volume of stocks and funds*0.15‰ Sources: Securities Association of China © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 192 Appendix 3 Overview of foreign invested securities company List of foreign invested securities company (30 June 2021) Number Date of establishment (Month/Year) JV securities companies Foreign shareholder(s) Chinese shareholder(s) Tencent Mobility Co.,Ltd. Central Huijin Investment Co.,Ltd. China International (4.48%) (40.11%) Haier Group(qingdao)Financial Holdings Ltd. 1 07/1995 Capital Co.,Ltd.* Des Voeux Investment Company Limited (8.26%) * (4.20%) China National Investment & Guaranty Co.,Ltd. (2.64%) Other public shareholders (34.90%) Public shareholders (5.41%) China Everbright Co.,Ltd. China Everbright Group Everbright (25.15%) 2 04/1996 Securities Co.,Ltd.* (20.83%) China Securities Finance Corporation Limited Other public shareholders (2.82%) * (15.26%) Other shareholders (35.94%) China National Petroleum Co.,Ltd. (14.32%) BOC International BOC International Holdings Shanghai Financial Development Investment Fund 3 02/2002 (China) Co.,Ltd.* Co.,Ltd. (Limited Partnership) ( ) (8.47%) * (33.42%) Yunnan Investment Co.,Ltd. (5.72%) Other shareholders (38.07%) Goldman Sachs 4 12/2004 Gaohua Securities Co.,Ltd. Goldman Sachs (Group) Inc. Beijing Gaohua Securities Co.,Ltd. (51.00%) (49.00%) * denotes listed securities company Note1: China Renaissance Broking Services (Hong Kong) Co.,Ltd.-former name "Maxson Securities Co.,Ltd." Sources: 2021 Q1 reports of securities companies and press media 193 Mainland China Securities Survey 2021 Date of Number establishment (Month/Year) JV securities companies Foreign shareholder(s) Chinese shareholder(s) 5 12/2006 6 10/2008 7 04/2009 8 05/2011 UBS Securities Co.,Ltd. Credit Suisse Securities China Limited UBS AG Co.,Ltd. (51.00%) Beijing State-owned Assets Management Co., Ltd. (33.00%) Guangdong Provincial Communications Group Co.,Ltd. (14.01%) Guodian Capital Holding Co., Ltd. (1.99%) Credit Suisse AG (51.00%) Founder Securities Co.,Ltd.* * (49.00%) Zhong De Securities Co.,Ltd. Deutsche Bank AG (33.30%) Morgan Stanley Securities (China) Co., Ltd. Morgan Stanley (51.00%) Shanxi Securities Co.,Ltd.* * (66.70%) China Fortune Securities Co.,Ltd. (49.00%) 9 04/2016 10 08/2016 11 08/2017 Shengang Securities Co.,Ltd. Mason Group Holdings Co.,Ltd. (12.17%) Freeman Securities Co.,Ltd. (12.17%) JT Capital management Ltd. (4.86%) Shanghai Chang Jia Investment Co., Ltd. (11.59%) Zhongchengxin Investment Co.,Ltd. (11.59%) Sailing Capital International (Shanghai) Co., Ltd. () (8.11%) Beijing Guoze Capital Management Co.,Ltd. (8.11%) Other entities (31.40%) China Renaissance Securities (China) Co., Ltd. China Renaissance Broking Services (Hong Kong) Co.,Ltd.(Note 1) (48.83%) ( 1 Shanghai Enlight Investment Holding Co., Ltd. (34.24%) Jiangsu Spruce Capital Management Co., Ltd. (4.90%) Wuxi Qunxing Equity Investment Management Co., Ltd. (3.49%) Guangzhou Li Bai Investment Co., Ltd. (2.85%) Other entities (5.69%) HSBC Qianhai Securities Co.,Ltd. The Hongkong and Shanghai Banking Co.,Ltd. (51.00%) Shenzhen Qianhai Financial Holdings Co.,Ltd. (49.00%) © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 194 Number Date of establishment (Month/Year) JV securities companies Foreign shareholder(s) Chinese shareholder(s) 12 08/2017 13 08/2019 14 08/2019 15 06/2020 16 12/2020 17 01/2021 East Asia Qianhai Securities Co.,Ltd. The Bank of East Asia (China) Limited (49.00%) Shenzhen Infogem Technologies Co.,Ltd. (26.10%) M&G Holdings (Group) Co.,Ltd. (20.00%) Shenzhen Qianhai Financial Holdings Co.,Ltd. (4.90%) J.P. Morgan Chase Securities (China) Co.,Ltd. J.P. Morgan International Finance Co.,Ltd. (51.00 ) Shanghai Waigaoqiao Free Trade Zone Development Co.,Ltd. (20.00 ) Zhuhai Mailande Equity Investment Management Co.,Ltd. (14.30 ) Xinjiang Zhong Wei Equity Investment L.P. (4.90 ) Shanghai Binghe Investment Management Center L.P. (4..90 ) Beijing Langxin Investment Co., Ltd. (4.90 ) Nomura Orient International Securities Co., Ltd. Nomura Holdings Co.,Ltd. (51.00 ) Orient International (Holding) Co.,Ltd. (24.90 ) Shanghai Huangpu Investment Holding (Group) Co., Ltd. (24.10 ) Jinyuan president securities Co., Ltd. Daiwa securities (China) Co., Ltd DBS securities (China) Co., Ltd President Securities Co.,Ltd. Xiamen Jin Yuan Investment Group Co.,Ltd. 49.00% (51.00 ) Daiwa Securities Group Corporation Inc. (51.00%) Beijing State-owned Capital Operation And Management Center (33%) Beijing Xicheng Capital Holding Co., Ltd. (16.00%) DBS Bank Co.,Ltd. 51.00% Donghao Lansheng (Group) Co., Ltd. (24.67%) Shanghai Huangpu investment holding (Group) Co., Ltd (13.33%) Shanghai Huiyang Asset Operation Co.,Ltd. (6.50%) Shanghai Huangpu leading capital equity investment Co., Ltd. (4.50%) * denotes listed securities company Note1: China Renaissance Broking Services (Hong Kong) Co.,Ltd.-former name "Maxson Securities Co.,Ltd." Sources: 2021 Q1 reports of securities companies and press media 195 Mainland China Securities Survey 2021 Appendix 4 2021 rating of securities companies by the CSRC AAA rating Nil AA rating (15 brokers) Essence Securities * * GF Securities* * * Huatai Securities* * Industrial Securities* * *# China International Capital Corporation*# * Orient Securities* Guotai Junan Securities* Ping'an Securities China Galaxy Securities* China Securities* A rating (35 brokers) Beijing Gao Hua Securities * Great Wall Securities* * Caida Securities* * Changjiang Securities* Dongguan Securities Donghai Securities * Dongxing Securities* * Founder Securities* China Development Bank Securities * Guoyuan Securities* Hwabao Securities Hua Chuang Securities * Huaxi Securities* * China Fortune Securities* Credit Suisse * Nanjing Securities* # Securities # * Shanxi Securities* Capital Securities Minmetals Securities * Western Securities* * Zheshang Securities* AVIC Securities ZTF Securities *# BOC International (China) Limited*# *# Everbright Securities*# * Guosen Securities * Shenwan Hongyuan Securities * China Merchants Securities* * CITIC Securities* * Caitong Securities* Eastmoney Securities * Soochow Securities* * Sinolink Securities* * Huaan Securities* * Chinalin Securities* Kaiyuan Securities # UBS Securities# * TF Securities* * Southwest Securities* * Zhongtai Securities* * denotes listed securities company # denotes foreign invested securities company Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 196 BBB rating (18 brokers) Bohai Securities Chasing Securities Great Wall Glory Securities * Northeast Securities* # Goldman Sachs Gao Hua Securities# * Sealand Securities* * Haitong Securities* Huajin Securities China Dragon Securities # China Renaissance Securities# # HSBC Qianhai Securities# Goldstate Securities Lianchu Securities # Morgan Stanley Huaxin Securities# # Shengang Securities# Cinda Securities Zhongtian Securities * Central China Securities* BB rating (16 brokers) Datong Securities * First Capital Securities* # East Asia Qianhai Securities# * Guolian Securities * Guorong Securities * Hongta Securities * Huafu Securities JZ Securities Minsheng Securities Century Securities Wanlian Securities Xiangcai Securities Yintai Securities Yingda Securities Yongxing Securities Yuekai Securities Tebon Securities Wanhe Securities B rating (5 brokers) # Jinyuan President Securities # Nomura Orient # International Securities# # J.P. Morgan Securities (China)# 197 Mainland China Securities Survey 2021 2021 rating of securities companies by the CSRC CCC rating (11 brokers) AJ Securities Daton Securities * Hengtai Securities* Hongxin Securities Jianghai Securities * Pacific Securities* Zhongshan Securities China Post Securities CC rating (1 broker) Guosheng Securities Huarong Securities New Times Securities GuoDu Securities C rating (1 broker) Chuancai Securities D rating (1 broker) N-Securities 35 out of 138 securities brokers are assigned with their parent companies' rating. These companies are Bohai Huijin Asset Management Co.,Ltd. (parent: Bohai Securities), Changjiang Financing Services and Changjiang Securities Asset Management Co,Ltd. (parent: Changjiang Securities), Caitong Securities Asset management Co., Ltd. (parent: Caitong Securities) , First Capital Investment Banking (parent: First Capital Securities), Northeast Securities Ronghui Asset Management Co.,Ltd. (parent: Northeast Securities), Orient Securities Asset Management Co., Ltd. and Orient Securities Investment Banking Co., Ltd. (parent: Orient Securities), Founder Financing Services Co., Ltd. (parent: Founder Securities), Everbright Securities Asset Management Co., Ltd. (parent: Everbright Securities), GF Securities Asset Management (Guangdong) (parent: GF Securities), Huaying Securities (parent: Guolian Securities), Guosheng Securities Asset Management Co.,Ltd. (parent: Guosheng Securities), GuoTai JunAn Securities Asset Management Co., Ltd. and Shanghai Securities (parent: Guotai Junan Securities), Haitong Securities Asset Management Co.,Ltd. (parent: Haitong Securities), Hengtai changcai Securities (parent: Hengtai Securities), Huatai United Securities and Huatai Securities Asset Management Co.,Ltd. (Parent: Huatai Securities), Zhongtai Asset Management (parent: Zhongtai Securities), Zhongde Securities (parent: Shanxi Securities), Shenwan Hongyuan Financing Services and Shenwan Hongyuan (Western) (parent: Shenwan Hongyuan Securities), Industrial Asset Management Co., Ltd. (parent: Industrial Securities), Galaxy Jinhui Asset management Co., Ltd. (parent: China Galaxy Securities), China Merchants Securities Asset Management Co.,Ltd. (parent: China Merchants Securities), Zhejiang Zheshang Securities Asset Management Co., Ltd. (parent: Zheshang Securities), China CICC Wealth Management Securities (parent: China International Capital Corporation) , CITIC Securities (Shandong), Jintong Securities and CITIC Securities South China (parent: CITIC Securities), Essence Securities Asset Management (parent: Essence Securities) , Yongxing Asset Management (parent: Yongxing Securities), Tianfeng (Shanghai) Securities Asset Management (parent: TF Securities), Tebon Securities Asset Management (parent: Tebon Securities). * denotes listed securities company # denotes foreign invested securities company Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 198 199 Mainland China Securities Survey 2021 Appendix 5 Mainland Futures Companies List of domestic futures companies approved by CSRC (30 June 2021) Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) Ahcof Futures Co., Ltd. Avic Futures Co., Ltd. Baocheng Futures Co., Ltd. Beijing Capital Futures Co., Ltd. BOC International Futures Co., Ltd. Bohai Futures Co., Ltd. Brilliant Futures Co., Ltd. Caida Futures Co., Ltd. CES Futures Co., Ltd. Central China Futures Co., Ltd. Chang-an Futures Co., Ltd. Changjiang Futures Co., Ltd. China Fortune Futures Co., Ltd. China Futures Co., Ltd. China International Futures Co., Ltd. China Investment Tianqi Futures Co., Ltd. China Merchants Futures Co., Ltd. China-Deriviative Futures Co., Ltd. 54.00% N N 82.42% N N * 80.00% Y N 50.37% Y N * 100.00% Y N * 96.00% Y N 74.80% N N * 99.20% Y N 100.00% N N * 51.36% Y N 40.20% Y N * 93.56% Y N 100.00% Y N * 100.00% Y N 50.07% N N 100.00% Y N * 100.00% Y N 49.00% N N * denotes listed securities company # denotes foreign invested futures company Sources: official websites of futures companies, CSRC, China Futures Association © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 200 Number 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) Chuang Yuan Futures Co., Ltd. Cinda Futures Co., Ltd. CITIC Futures Co., Ltd. COFCO Futures Co., Ltd. Dadi Futures Co., Ltd. Gelin Dahua Futures Co., Ltd. Hengli Futures Co., Ltd. (formerly known as Dalian Fortune Futures Co., Ltd.) Datong Futures Broking Co., Ltd. Dayou Futures Co., Ltd. Dayue Futures Co., Ltd. Donghai Futures Co., Ltd. Donghua Futures Co., Ltd. Dongxing Futures Co., Ltd. DoTo Futures Co., Ltd. Everbright Futures Co., Ltd. First Capital Futures Co., Ltd. First Futures Co., Ltd. CICC Futures Co., Ltd. 58.06% N N 100.00% Y N * 100.00% Y N 65.00% N N 100.00% N N * 100.00% Y N 100.00% N N 70.00% N N 100.00% N N 58.75% N N 60.00% Y N 51.00% N N * 100.00% Y N 80.00% N N * 100.00% Y N * 100.00% Y N 63.75% N N * 100.00% Y N 201 Mainland China Securities Survey 2021 Mainland Futures Companies Number 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 ( ) Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) Founder CIFCO Futures Co., Ltd. Galaxy Futures Co., Ltd. GF Futures Co., Ltd. Goldstate Futures Co., Ltd. Goldtrust Futures Co., Ltd. Guangzhou Finance Holdings Futures Co., Ltd. Guangzhou Futures Co., Ltd. Guantong Futures Co., / Ltd. Guodu Futures Co., Ltd. Guofu Futures Co., Ltd. Guohai Liangshi Futures Co., Ltd. Guolian Futures Co., Ltd. Guosen Futures Co., Ltd. Guotai Junan Futures Co., Ltd. Guoyuan Futures Co., Ltd. Haitong Futures Co., Ltd. Hehe Futures Co., Ltd. Hengtai Futures Co., Ltd. Hengyin Futures Brokerage Co., Ltd. (formerly known as Heibei Hengyin Futures Brokerage Co., Ltd.) * 92.44% Y N * 100.00% Y N * 100.00% Y N 89.33% Y N 35.43% N N 82.17% Y N 99.03% N N 48.72% N N 62.31% Y N 80.14% N N * () 83.84% Y N 54.72% N N * 100.00% Y N * 100.00% Y N * 98.41% Y N * 66.67% Y N 40.00% N N * 80.00% Y N 45.86% N N * denotes listed securities company # denotes foreign invested futures company Sources: official websites of futures companies, CSRC, China Futures Association © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Number 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 202 Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) Herong Futures Co., Ltd. Hicend Futures Co., Ltd. Holly Futures Co., Ltd. Hongta Futures Co., Ltd. Hongyuan Futures Co., Ltd. Chaos Ternary Furtures Co., Ltd. * () Huaan Futures Co., Ltd. * Huachuang Futures Co., Ltd. JZ Futures Co., Ltd. Hualian Futures Co., Ltd. China Dragon Futures Co., Ltd. HuaRong Futures Co., Ltd. Huatai Futures Co., Ltd. * Huawen Futures Co., Ltd. Huaxi Futures Co., Ltd. * Huishang Futures Co., Ltd. Industrial Securities Futures Co., Ltd. * ITG Futures Co., Ltd. # J.P.Morgan Futures Co.,Ltd.# J.P.MORGAN BROKING (HONG KONG) LIMITED 99.95% Y N 100.00% Y N 30.37% N N 100.00% Y N 100.00% N N 87.72% N N 100.00% Y N 62.50% Y N 100.00% Y N 49.00% Y N 40.87% Y N 92.50% Y N 60.00% Y N 100.00% N N 100.00% Y N 71.77% N N 99.55% Y N 95.00% N N 100.00% N Y 203 Mainland China Securities Survey 2021 Mainland Futures Companies Number 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) Jianghaihuixin Futures Co., Ltd. Capital Jingdu Futures Co., Ltd. HuaJin Futures Co., Ltd. Jinpeng International Futures Co., Ltd. Jinrui Futures Co., Ltd. Jinshi Futures Co., Ltd. Jintai Futures Co., Ltd. Jintou Futures Co., Ltd. Funeng Futures Co., Ltd Guosheng Futures Co., Ltd. Jiangxi Rich Futures Co., Ltd. Luzheng Futures Co., Ltd. Maike Futures Co., Ltd. Mailyard Futures Co., Ltd. Minmetals Futures Co., Ltd. (formerly known as Minmetals & Jingyi Futures Co., Ltd. ) Minsheng Futures Co., Ltd. Miracle China Futures Co., Ltd. Nanhua Futures Co., Ltd. Ningzheng Futures Co., Ltd. () * * 51.00% Y N 100.00% Y N 100.00% N N 68.29% N N 72.06% N N 39.79% N N 40.00% N N 85.00% N N 86.17% N N 98.65% Y N 53.68% N N 63.10% Y N 83.17% N N 45.08% N N 99.00% N N 95.01% Y N 73.39% N N 69.68% N N 53.07% Y N * denotes listed securities company # denotes foreign invested futures company Sources: official websites of futures companies, CSRC, China Futures Association © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 204 Number 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 Institution name The Largest shareholder Shareholding as of 30 June 2021 Invested by Foreign invested Securities futures companies companies (2021 6 30 ) New Era Futures Co., Ltd. Shenzhen Jinhui Futures Brokerage Co., Ltd. () TF Furtures Co., Ltd. * Orient Securities Futures Co., Ltd. * Oriental Huijin Futures Co., Ltd. Pingan Futures Co., Ltd. # Qiankun Futures Co., Ltd.# Ruida Futures Co., Ltd. Shanxi Sanli Futures Co., Ltd. Soochow Futures Co., Ltd. * SDIC Essence Futures Co., Ltd. Shanghai CIFCO Futures Co., Ltd. Shanghai Dalu Futures Co., Ltd. Shanghai East Asia Futures Co., Ltd. Tongguan Jin Yuan Furtures Co., Ltd. CCB Furtures Co., Ltd. Shanghai East Futures Co., Ltd. # UBS Furtures Co., Ltd.# Tonghui Futures Co., Ltd. 90.00% N N 100.00% N N 62.94% Y N 100.00% Y N 93.93% N N 96.05% Y N 100.00% Y Y 75.58% N N 66.00% N N 93.80% Y N 100.00% Y N 66.67% N N 51.00% Y N 98.70% N N 79.00% N N 80.00% N N 75.00% N N 100.00% Y Y 60.00% N N 205 Mainland China Securities Survey 2021 Mainland Futures Companies Number 113 114 115 116 117 118 119 120 121 122 123 124 125 126 ( 127 ( ) 128 129 Institution name The Largest shareholder Shareholding as of 30 June 2021 (2021 6 30 ) Invested by Foreign invested Securities futures companies companies Zhongcai Futures Co., Ltd. China Industrial Futures Co., Ltd. Shengda Futures Co., Ltd. Shengxin Futures Co., Ltd. Shenyin & Wanguo Futures Co., Ltd. Sinolink Futures Co., Ltd. Shanghai Zheshi Futures Co., Ltd. Sinosteel Futures Co., Ltd. Southwest Futures Co., Ltd. Tianfu Futures Co., Ltd. Tianhong Baoye Futures Brokerage Co.,Ltd. Eastmoney Futures Co., Ltd HNA Futures Co., Ltd. Chasing Futures Co., Ltd. ) (formerly known as Triumph Futures Co., Ltd.) Huarong Rongda Futures Co., Ltd. (formerly known as CEFC Futures Co., Ltd.) Qianhai Futures Co., Ltd. * / / * / / 99.00% N N 100.00% N N 96.00% N N 51.00% N N 97.87% Y N 100.00% Y N 100.00% N N 29.24% N N 100.00% Y N 55.00% N N 83.31% N N 100.00% Y N 91.09% N N 61.54% Y N 59.26% N N 20.00% N N Western Futures Co., Ltd. * 100.00% Y N * denotes listed securities company # denotes foreign invested futures company Sources: official websites of futures companies, CSRC, China Futures Association © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 206 Number 130 131 132 133 ( 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 Institution name The Largest shareholder Shareholding as of 30 June 2021 (2021 6 30 ) Invested by Foreign invested Securities futures companies companies Shandong Gold Furtures Co., Ltd. SPIC Xianrong Futures Co., Ltd. Xindingsheng Futures Co., Ltd. ) Xinhu Futures Co., Ltd. Cloudfutures Co.,Ltd. Xinsheng Futures Co., Ltd. Yingda Futures Co., Ltd. Zhongtian Futures Co., Ltd. Yongan Futures Co., Ltd. Yunchen Futures Co., Ltd. Zhao Jin Futures Co., Ltd. New Century Futures Co., Ltd. Zheshang Futures Co., Ltd. Zhong Rong Hui Xin Futures Co., Ltd. Zhongda Futures Co., Ltd. Zhonghui Futures Co., Ltd. Zhongzhou Futures Co., Ltd. Pioneer Futures Co., Ltd. Yongshang Futures Co., Ltd. Great Wall Futures Co., Ltd. 100.00% N N 44.20% N N 88.85% N N 54.00% N N 90.20% N N 51.00% N N 77.00% Y N 100.00% Y N * 33.54% Y N 60.00% N N 49.96% N N 46.71% N N * 100.00% Y N 94.50% N N 95.10% N N 42.80% N N 100.00% Y N 91.80% N N 48.00% N N 55.00% Y N 207 Mainland China Securities Survey 2021 Appendix 6 Mainland Fund Management Companies List of fund management companies approved by the CSRC (30 June 2021) Number Institution name Registration The Largest place shareholder Shareholding Foreign as at 30 June invested 2021 FMC Alternative investment subsidiaries FMCs invested by securities companies 1 China Southern Asset Management Co.,Ltd. 2 China Asset Management Co., Ltd. 3 Huaan Fund Management Co., Ltd. 4 Bosera Asset Management Co., Ltd. 5 Penghua Fund Management Co.,Ltd. 6 Changsheng Fund Management Co.,Ltd. 7 Fullgoal Fund Management Co., Ltd. 8 E Fund Management Co.,Ltd. 9 Rongtong Fund Management Co., Ltd. 10 Yinhua Fund Management Co.,Ltd. 11 Changcheng Fund Management Co.,Ltd. 12 Wanjia Asset Management Co., Ltd. 13 HFT Investment Management Co.,Ltd. 14 Chang Xin Asset Management Co.,Ltd. Invesco Great Wall 15 Fund Management Company Limited 16 GF Fund Management Co.,Ltd. 17 Aegon-Industrial Fund Management Co., Ltd. 18 SWS Mu Fund Management Co., Ltd. 19 Everbright PGIM Fund Management Co.,Ltd. 41.16% N Y 62.20% Y Y 28.00% N Y 49.00% N Y 50.00% Y Y 41.00% Y Y / 27.78%/ / 27.78%/ Y Y 27.78% / 22.65%/ / 22.65%/ N Y 22.65% 60.00% Y Y 49.00% N Y 47.06% N Y 49.00% N Y 51.00% Y Y 44.55% N Y 49.00% Y Y 54.53% N Y 51.00% Y Y 67.00% Y Y 55.00% Y Y Sources: Offical website of Fund Management Companies, CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 208 Number 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Institution name Registration The Largest place shareholder Shareholding as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries Harfor Fund Management Co.,Ltd. Orient Fund Management Co.,Ltd. Soochow Asset Management Co.,Ltd. Franklin Templeton Sealand Fund Management Co.,Ltd. Huatai-PineBridge Fund Management Co., Ltd. New China Fund Management Co., Ltd. China Universal Asset Management Co.,Ltd. Huashang Fund Management Co., Ltd. China Post & Capital Fund Management Co., Ltd. First State Cinda Fund Management Co. Ltd Goldstate Capital Fund Management Co., Ltd. Western Leadbank Fund Management Company Limited Fuanda Fund Management Co.,Ltd Caitong Fund Management Co.,Ltd. Founder Fubon Fund Management Co., Ltd. Gfund Management Co.,Ltd. Tebon Fund Management Co.,Ltd Hongta Hotland Asset Management Co.,Ltd. Jiangxin Fund Management Co.,Ltd. 49.00% N Y 57.60% N Y 70.00% N Y 51.00% Y Y / 49.00%/ 49.00% Y Y 58.62% N Y 47.00% N Y 46.00% N N 46.37% Y Y 54.00% Y Y 51.00% N Y 51.00% N N 49.00% N Y 40.00% N Y 66.70% Y Y 49.00% N Y 70.00% N Y 59.27% N Y 30.00% N N 209 Mainland China Securities Survey 2021 Mainland Fund Management Companies Number Institution name Registration The Largest place shareholder Shareholding as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries 39 First Seafront Fund Management Co., Ltd. 40 Donghai Fund Management Co., Ltd. 41 CDBS Cathay Asset Management Co.,Ltd. 42 China Fund Management Co.,Ltd. 43 Xingyin Fund Management Co.,Ltd 44 CICC Fund Management Co.,Ltd. 45 Truvalue Asset Management Co.,Ltd. 46 China Aviation Fund Management Co., Ltd. 47 Guorong Fund Management Co.,Ltd. 48 Xiangcai Fund Management Co., Ltd. 49 Tibet Eastmoney Fund Management Co., Ltd. 50 Huarong Fund Management Co.,Ltd. 51 Dongxing Fund Management Co., Ltd. FMCs invested by trust companies 52 Harvest Fund Management Co.,Ltd. 53 Dacheng Fund Management Co., Ltd. 54 Baoying Fund Management Co., Ltd. 55 UBS SDIC Fund Management Co., Ltd 56 Hwabao WP Fund Management Co., Ltd. / 25.00%/ / / 25.00%/ 25.00%/ N Y 25.00% 45.00% N Y 66.70% N Y 75.00% N Y 76.00% N Y 100.00% N N 51.07% N N 55.00% N N 51.00% N N 100.00% N N 100.00% N N 100.00% N N 100.00% N N 40.00% Y Y 50.00% N Y 75.00% N Y 51.00% Y Y 51.00% Y N Sources: Offical website of Fund Management Companies, CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Number 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 210 Institution name Registration The Largest place shareholder Shareholding as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries First-Trust Fund Management Co.,Ltd. China Nature Asset Management Co., Ltd. Lion Fund Management Co., Ltd. Zhonghai Fund Management Co.,Ltd. China International Fund Management Co., Ltd CITIC-Prudential Fund Management Company Ltd HSBC Jintrust Fund Management Co., Ltd Yimin Asset Management Co., Ltd. Ping An Fund Management Co., Ltd. Chang'an Funds Management Co.,Ltd. Mirae Asset Huachen Fund Management Co.,Ltd. China Resources Yuanda Fund Management Co.,Ltd. Zhongrong Fund Management Co.,Ltd Golden Trust Sinopac Fund Management Co.,Ltd. BeiXin RuiFeng Fund Management Co.,Ltd. JYAH Asset Management Co.,Ltd. 45.00% N Y 61.25% N Y / 40.00%/ 40.00% N Y 41.59% Y Y 51.00% Y Y / 49.00%/ 49.00% Y Y 51.00% Y N 65.00% N Y 68.19% Y Y 29.63% N Y 40.00% Y Y 51.00% Y Y 51.00% N Y 51.00% Y N 60.00% N Y / 27.27%/ 27.27% N N 211 Mainland China Securities Survey 2021 Mainland Fund Management Companies Number Institution name Registration The Largest place shareholder Shareholdin g as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries FMCs invested by banks 73 China Merchants Fund Management Co., Ltd. Bank of China 74 Investment Management Co.,Ltd. ICBC Credit Suisse 75 Asset Management Co,Ltd Bank of 76 Communications Schroder Fund Management Co.,Ltd. 77 CCB Principal Asset Management Co.,Ltd. 78 Zhong Ou Asset Management Co.,Ltd. / 79 AXA SPDB Investment Managers Co., Ltd. 80 ABC-CA Fund Management Co., Ltd. 81 Minsheng Royal Fund Management Co., Ltd. Bank of Beijing 82 Scotiabank Asset Management Co.Ltd. 83 CIB Fund Management Co.,Ltd 84 BOSC ASSET Fund Management Co., Ltd 85 Xinyuan Asset Management Co., Ltd. 86 Maxwealth Fund Management Co.,Ltd Hang Seng Qianhai 87 Fund Management Co.,Ltd. 55.00% N Y 83.50% Y Y 55.00% Y Y 65.00% Y Y 65.00% Y Y 25.00%/ 25.00% Y Y 51.00% Y Y 51.67% Y Y 63.33% Y Y 44.00% Y Y 90.00% N Y 90.00% N Y 80.00% N Y 71.49% Y Y 70.00% Y N Sources: Offical website of Fund Management Companies, CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 212 Number Institution name Registration The Largest place shareholder Shareholdin g as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries FMCs invested by individuals 88 Hongde Fund Management Co.,Ltd 89 Horizon Asset Management Co., Ltd. 90 V.Stone Fund Management Co., Ltd. 91 Oriental Alpha Fund Management Co., Ltd. 92 Focusbridge Investments Ltd. 93 United Vision Asset Management Co.,Ltd. 94 Hexa Asset Management Co.,Ltd. 95 Zhonggeng Fund Management Co.,Ltd 96 Foresight Fund Management Co., Ltd. 97 Purekind Fund Management Co.,Ltd. 98 Tongtai Fund Management Co., Ltd. 99 Huisheng Fund Management Co., Ltd 100 Boyuan Fund Management Co., Ltd. 101 Mingya Fund Management Co.,Ltd 102 Integrity Funds Management Co., Ltd 103 Huiquan Fund Management Co., Ltd. 104 Baijia Fund Management Co., Ltd. 25.91% N N 40.60% N N 65.00% N N 39.96% N N 65.00% N N 31.29% N N 60.40% N N 26.00% N N 55.00% N N 31.20% N N 38.20% N N 36.00% N N 45.03% N N 46.00% N N 43.00% N N 55.30% N N 40.00% N N 213 Mainland China Securities Survey 2021 Mainland Fund Management Companies Number Institution name Registration The Largest place shareholder Shareholdin g as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries 105 Shangzheng Fund Management Co., Ltd. 106 Pengyang Asset Management Co.,Ltd 107 Broad Fund Management Co., Ltd. 108 Xinghua Fund Management Co., Ltd. 42.00% N N 45.15% N N 35.00% N N 60.61% N N FMCs invested by other companies 109 Guotai Asset Management Co., Ltd. 60.00% Y Y 110 Galaxy Asset Management Co.,Ltd. 50.00% N Y 111 Manulife Teda Fund Management Co.,Ltd ) ( 51.00% Y N CPIC Fund 112 Management Limited Company 51.00% Y N 113 Tianhong Asset Management Co.,Ltd Lord Abbett China 114 Asset Management Co., Ltd. 51.00% N Y 51.00% N N 115 BlackRock Fund Management Co., Ltd BlackRock Financial Management. Inc. 100.00% Y N 116 Yingda Fund Management Co., Ltd. Taiping Fund 117 Management Company Limited 118 China Life AMP Asset Management Co.,Ltd. Hotland Innovation 119 Asset Management Co., Ltd. 120 JT Asset Management Co.,Ltd. 100.00% N Y 91.50% Y N 85.03% Y Y 100.00% N Y 26.00% N N Sources: Offical website of Fund Management Companies, CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 214 Number 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 Institution name Registration The Largest place shareholder Shareholdin g as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries Xinjiang Qianhai Alliance Asset Management Co.,Ltd Sinvo Fund Management Co.,Ltd Cs Richland Funds Co., Ltd. Fortune & Royal Asset Management Co., Ltd. VFund Management Co.,Ltd. Huatai Baoxing Fund Management Co., Ltd. Gelin Fund Management Co.,Ltd. Nanhua Fund Management Co.,Ltd. Hony Horizon Fund Management Co.,Ltd Rosefinch Fund Management Co., Ltd. Ruida Fund Management Co., Ltd. Zheshang Fund Management Co., Ltd. Essence Fund Management Co., Ltd. Jinxin Fund Management Co.,Ltd. Golden Eagle Asset Management Co.,Ltd. Morgan Stanley Huaxin Fund Management Company Limited Other companies with public fund licenses Guodu Securities Co.,Ltd. Orient Securities Asset Management Company Limited Zhejiang Zheshang Securities Asset Management Co.,Ltd. Bohai Huijin Securities Asset Management Limited () 30.00% N N 70.00% N N 62.23% N N 50.00% N N 34.21% N N 85.00% N N 100.00% N N 100.00% N N 100.00% N N 65.00% N N 100.00% N N 50.00% N Y 39.84% N Y 34.00% N N 66.19% N Y 49.00% Y N 13.33% N N 100.00% N N 100.00% N N 100.00% N N 215 Mainland China Securities Survey 2021 Mainland Fund Management Companies Number Institution name Registration The Largest place shareholder Shareholdin g as at 30 June 2021 Foreign invested FMC Alternative investment subsidiaries Caitong Securities 141 Assets Management Co.,Ltd. Changjiang 142 Securities(shanghai) Asset Management Co.,Ltd. 100.00% N N 100.00% N N Huatai Securities 143 Asset Management (shanghai) Co.,Ltd. 100.00% N N Zhongtai Securities 144 (Shanghai) Assets management Shanghai Guotai Junan 145 Security Assets Management Co.ltd. 146 Dongxing Securities Corporation Limited 60.00% N N 100.00% N N 52.74% N N 147 BOCI Securities Limited 37.14% Y N 148 Taikang Asset Management Co., Ltd. Picc Asset 149 Management Company Limited 150 Shanxi Securities Co.,Ltd. 99.41% N N 100.00% N N 31.77% N N / 151 Beijing Gao Hua Securities Co.,Ltd / / 25%/25%/ 25%/25% N N Sources: Offical website of Fund Management Companies, CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 216 Mainland China Securities Survey 2021 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 217 Mainland China Securities Survey 2021 Appendix 7 Mainland Subsidiaries of Fund Management Companies List of fund management companies approved by the CSRC (30 June 2021) Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 ( () ( ) ) Institution name Harvest Capital Management Co., Ltd. ICBC Credit Suisse Investment Management Co., Ltd. Shenzhen Ping An Uob Investment Management Co., Ltd. Changan Wealth Asset Management Co., Ltd. Beijing Funder Fubon Asset Management Co., Ltd. Tianhong Innovative Asset Management Co., Ltd. China Capital Management Co., Ltd. Penghua Asset Management Co., Ltd. Shenzhen Hongta Asset Management Co., Ltd. Aegon-Industrial Capital Management (Shanghai) Co., Ltd. Fuanda Asset Management Co., Ltd. Minsheng Royal Asset Management Co., Ltd. Beijing Chance Capital Management Co., Ltd. Shanghai Ruiyi Asset Management Co., Ltd. WanJia Asset Management Co., Ltd. China Merchants Wealth Asset Management Co., Ltd. Shanghai XDWYS Asset management Co., Ltd. Bosera Capital Management Co., Ltd. Shanghai Goldstate Brilliance Asset Management Co., Ltd. Shanghai Ju Chao Asset Management Co., Ltd. Tebon Innovation Capital Co., Ltd. Yin Hua Capital Management (Beijing) Co., Ltd. (formerly known as Yin Hua Capital Management (Zhuhai Hengqin) Co., Ltd.) Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 218 Registered Capital (RMB '0000) 62,215 120,000 80,000 10,000 13,000 60,000 35,000 35,000 35,000 8,000 60,000 66,800 10,000 22,000 10,600 174,000 5,000 85,000 17,557 14,000 28,000 14,910 Registration Place Approval date (Month/Year) Beijing Shanghai Shenzhen Shanghai Beijing Beijing Shenzhen Shenzhen Shenzhen Shanghai Shanghai Shanghai Beijing Shanghai Shanghai Shenzhen Shanghai Shenzhen Shanghai Shanghai Shanghai 11/2012 11/2012 12/2012 12/2012 12/2012 12/2012 12/2012 01/2013 01/2013 01/2013 01/2013 01/2013 01/2013 02/2013 02/2013 02/2013 02/2013 02/2013 02/2013 02/2013 03/2013 Beijing 03/2013 219 Mainland China Securities Survey 2021 Mainland Subsidiaries of Fund Management Companies Number Institution name 23 24 () 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 () 40 41 42 () 43 44 EverBright Prestige Capital Asset Management Co., Ltd. Cinda New Wealth Asset Management Co., Ltd. China Universal Capital Management Co., Ltd. Shanghai Huachen Mirae Asset Management Co., Ltd. Beijing New China Fu Shi Asset Management Co., Ltd. CITIC-CP Asset Management Co., Ltd. Hong Funds Asset Management Co., Ltd. Shen Zhen Rongtong Capital Management Co., Ltd. Guotai Yuanxin Asset Management Co., Ltd. Shanghai Caitong Asset Management Co., Ltd. Rui Yuan Asset Management Co., Ltd. CCB Principal Capital Management Co., Ltd. E Fund Asset Management Co., Ltd. CIB Asset Management Co., Ltd. Shanghai Harfor Lead Asset Management Co., Ltd. UBS SDIC Asset Management Co., Ltd. Zhonghai Hengxin Asset Management Co., Ltd. Guangzhou Golden Egale Asset Management Co., Ltd. TBA Asset Management Co.,Ltd.. Fullgoal Asset Management Co., Ltd. Great Wall Capital Co., Ltd. Shanghai Changjiang Wealth&Asset Manangement Co.,Ltd. Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Registered Capital (RMB '0000) 96,000 8,000 30,000 3,000 30,800 5,000 10,000 12,793 12,348 2,000 7,500 135,000 100,000 78,000 11,687 18,000 2,000 21,000 10,000 20,000 17,821 10,000 220 Registration Place Approval date (Month/Year) Shenzhen Beijing Shanghai Shanghai Beijing Shanghai Beijing Shenzhen Shanghai Shanghai Zhuhai Shanghai Zhuhai Shanghai Shanghai Shenzhen Shanghai Guangzhou Beijing Shanghai Shenzhen Shanghai 03/2013 03/2013 03/2013 03/2013 04/2013 04/2013 05/2013 05/2013 05/2013 06/2013 06/2013 06/2013 06/2013 06/2013 07/2013 07/2013 07/2013 07/2013 08/2013 08/2013 08/2013 08/2013 221 Mainland China Securities Survey 2021 Mainland Subsidiaries of Fund Management Companies Number 45 () 46 47 48 49 50 () 51 () 52 () 53 () 54 55 56 57 58 () 59 60 61 62 () 63 64 () 65 Institution name Donghai Ruijing Asset Management (Shanghai) Co.,Ltd. Qianhaikaiyuan Asset Management Co., Ltd. Orient Minerva Asset Management Co.,Ltd. ABC-CA Asset Management Co., Ltd. Lion Asset Management Co., Ltd. Ceic Asset Management (shanghai) Co., Ltd. Zhongrong Asset Management Co., Ltd. Investco Great Wall Asset Management Co., Ltd. Hua An Furture Asset Manangement Co., Ltd. Dacheng Innovative Capital Management Co.,Ltd. Changsheng Chuangfu Wealth Asset Management Co.,Ltd. Southern Asset Management Co.,Ltd. China Railway Bao Ying Asset Management Co.,Ltd. Essence Asset Co., Ltd. Shanghai AXA SPDB Assets Managers Co., Ltd. Shenzhen Huarunyuanda Asset Management Co., Ltd. Bank of Communications Schroders Asset Management Co., Ltd. Franklin Templeton Sealand Asset Management Co.,Ltd. Xinyuan Capital Management Co., Ltd. SWS MU Asset Management Co.,Ltd. BOSC Rui Jin Asset Management Co., Ltd. Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Registered Capital (RMB '0000) 2,000 18,000 18,000 192,000 35,000 26,700 20,000 13,000 50,000 11,860 10,000 54,200 22,000 10,000 148,000 11,800 120,000 12,000 155,000 20,000 13,000 222 Registration Place Approval date (Month/Year) Shanghai Shenzhen Shenzhen Shanghai Beijing Shanghai Beijing Shenzhen Shanghai Shenzhen Beijing Shenzhen Shenzhen Shenzhen Shanghai Shenzhen Shanghai Shanghai Shanghai Shanghai Shanghai 09/2013 09/2013 09/2013 09/2013 09/2013 09/2013 09/2013 09/2013 10/2013 10/2013 10/2013 11/2013 11/2013 12/2013 12/2013 12/2013 12/2013 01/2014 02/2014 03/2014 03/2014 223 Mainland China Securities Survey 2021 Mainland Subsidiaries of Fund Management Companies Number 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 () () Institution name Maxwealth Asset Management Co., Ltd. Beijing CDBS Cathay Asset Management Co., Ltd. Bei Fund Management Co., Ltd. Galaxy Capital Asset Management Co., Ltd. Shanghai HFT Fortune Asset Management Co., Ltd. Bank of China Asset Management Co., Ltd. PineBridge Aijian asset management (Shanghai) Co., Ltd. China Life Capital Management Co., Ltd. Shanghai Xinghan Asset Management Co., Ltd. Sunward Capital Management Co., Ltd. CSC Asset Management Co., Ltd. Shanghai Beixing Ruifeng Asset Management Co., Ltd. Everbright Pramerica Assets Management Co., Ltd. Beijing Yingda Capital Management Co., Ltd Shenzhen Venture Capital Hongtu Asset Management (Shenzhen) Co., Ltd. Sources: CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Registered Capital (RMB '0000) 80,000 10,000 31,110 10,000 20,000 85,000 15,000 20,000 30,000 16,000 13,000 10,000 25,000 55,800 12,000 224 Registration Place Approval date (Month/Year) Shanghai Beijing Shenzhen Shanghai Shanghai Shanghai Shanghai Shanghai Shanghai Shanghai Beijing Shanghai Shanghai Beijing Shenzhen 03/2014 04/2014 04/2014 04/2014 08/2014 09/2014 09/2014 11/2014 02/2015 04/2015 06/2015 07/2015 08/2015 09/2015 09/2020 225 Mainland China Securities Survey 2021 Appendix 8 Securities companies who have set up Hong Kong subsidiaries Number Mainland Securities Companies Hong Kong Subsidiary Name Incorporation date 1 * Sinolink Securities* Sinolink Securities (HK) Co., Ltd. Sinolink Finance (HK) Co., Ltd. Sinolink Securities Financial Holdings (Hong Kong) Co., Ltd. 20/02/1987 30/05/1989 19/09/2018 Shenwan 2 Hongyuan Securities 3 Essence Securities China 4 *# International Capital Corporation*# 5 * CITIC Securities* 6 * China Merchants Securities* 7 * Shanxi Securities* Shenwan Hongyuan (International) Holdings Co., Ltd. 29/10/1992 Essence International Financial Holdings Co., Ltd. 17/09/1996 China International Capital Corporation (Hong Kong) Co., Ltd. China International Capital Corporation Hong Kong Securities Co., Ltd. China International Capital Corporation Hong Kong Asset Management Co., Ltd. China International Capital Corporation Hong Kong Futures Co., Ltd. CICC US Securities (Hong Kong) Co., Ltd. CICC Financial Trading Co., Ltd. 04/04/1997 09/03/1998 17/12/2005 30/08/2010 11/10/2010 10/04/2012 CITIC Securities International Co., Ltd. 09/04/1998 China Merchants Securities International Co., Ltd. Shanxi Securities International Financial Holdings Co., Ltd. 14/07/1999 12/04/2006 8 * GF Securities* GF Holdings (Hong Kong) Co., Ltd. 14/06/2006 9 * Guoyuan Securities* 10 Ping An Securities 11 * Huatai Securities* () Guoyuan International Holdings Co., Ltd. 19/07/2006 Ping An of China Securities (Hong Kong) Co., Ltd. 19/07/2006 Huatai Financial Holdings (Hong Kong) Co., Ltd. 23/11/2006 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies and websites of securities company,CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 226 Number 12 13 14 15 16 17 18 19 20 21 22 23 24 25 * * * * *# * * * * * * * Mainland Securities Companies Hong Kong Subsidiary Name Incorporation date Haitong Securities* Guotai Junan Securities* GuoDu Securities Guosen Securities* Orient Securities* China Investment Securities Everbright Securities*# Changjiang Securities* () China Galaxy Securities* Zhongtai Securities* Industrial Securities* Caitong Securities* Founder Securities* () China Securities* Haitong International Holdings Co., Ltd. 24/07/2007 Guotai Junan Financial Holdings Co., Ltd. 10/08/2007 China Guodu (Hong Kong) Financial Holdings Co., Ltd. 12/11/2007 Guosen Securities (HK) Financial Holdings Co., Ltd. 13/11/2008 Orient Finance Holdings (Hong Kong) 17/02/2010 Co., Ltd. China Investment Securities (Hong Kong) Financial Holdings Co., 20/08/2010 Ltd. Everbright Securities Financial Holdings Co., 19/11/2010 Ltd. Changjiang Securities International Financial 11/01/2011 Group Co., Ltd. China Galaxy International Financial 09/02/2011 Holdings Co., Ltd. Zhongtai Financial International Co., Ltd. 22/06/2011 Industrial Securities (Hong Kong) Financial 05/07/2011 Holdings Limited Caitong Securities (Hong Kong) Co., Ltd. 12/08/2011 Founder Securities (Hong Kong) Financial 21/03/2012 Holdings Co., Ltd. China Securities (International) Finance 12/07/2012 Holding Co., Ltd. 227 Mainland China Securities Survey 2021 Securities companies who have set up Hong Kong subsidiaries Number 26 * 27 * 28 * 29 30 * 31 * 32 * 33 * 34 * 35 Mainland Securities Companies Southwest Securities* Central China Securities* Dongxing Securities* Donghai Securities Zheshang Securities* TF Securities* SooChow Securities* Huaan Securities* Guolian Securities* Huafu Securities Hong Kong Subsidiary Name Incorporation date Southwest Securities International 29/11/2013 Investment Co., Ltd. Central China International Financial 29/10/2014 Holdings Co., Ltd. Dongxing Securities (Hong Kong) Financial 17/07/2015 Holdings Co., Ltd. Donghai International Financial Holdings 11/08/2015 Co., Ltd. Zheshang International Financial 23/04/2015 Holdings Co., Ltd TF International Securities Group Co., 06/06/2016 Ltd. SooChow Securities (Hong Kong) Financial 27/06/2016 Holdings Co., Ltd. Huaan Securities (Hong Kong) Financial 30/06/2020 Holding Limited Guolian Securities (H.K.) Co., Limited Huafu International (HK) Financial Holdings Limited 27/02/2020 14/04/2020 * denotes listed securities company # denotes foreign invested securities company Sources: 2020 annual reports of securities companies and websites of securities company,CSRC © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 228 Mainland China Securities Survey 2021 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 229 Mainland China Securities Survey 2021 Appendix 9 Foreign-funded enterprises that offer private fund management business List of foreign-funded enterprises that offer private fund management business of 30 June 2021 Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 () ) () () () Institution name Registration date Filing date APS China Asset Management Pte Ltd. 2002-11-18 Mirae Asset Investment Management (Shanghai) Co., Ltd. 2008-02-26 D. E. Shaw Investment Management (Shanghai) Co., Ltd. 2010-02-24 AZ Investment Management (Shanghai) Co., Ltd. 2011-07-14 Winton Investment Management (Shanghai) Co., Ltd. 2012-03-26 Auto(HangZhou) Enterprise Management Limited 2012-07-30 Fullerton Investment Management (Shanghai) Co., Ltd. 2013-12-03 Shanghai Hunlicar Investment Management Co, Ltd 2014-05-04 Russell Investment Management (Shanghai) Co., Ltd. 2015-03-31 UBS Asset Management (Shanghai) Co., Ltd. 2015-08-19 FIL Investment Management (Shanghai) Company Limited 2015-09-14 Aberdeen Standard Investments Management (Shanghai) Co., Ltd. 2015-09-14 AB (Shanghai) Investment Management Co., Ltd. 2015-12-14 Schroders Investment Management (Shanghai) Co., Ltd. 2015-12-21 Bridgewater (China) Investment Management Co., Ltd. 2016-03-07 Hanwha Asset Management Ltd. 2016-10-21 2018-07-17 2018-11-14 2019-04-11 2018-02-28 2018-06-29 2014-05-26 2017-09-07 2014-10-13 2020-02-14 2016-08-15 2017-01-03 2017-11-29 2019-03-01 2017-12-25 2018-06-29 2020-10-16 Sources:Asset Management Association of China and press media © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 230 Number 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 () () () () () () () () () () Institution name Registration date Filing date Neuberger Berman Investment Management (Shanghai) Limited 2016-11-28 Allianz Global Investors Asset Management (Shanghai) Co., Ltd. 2016-12-06 Value Partners Investment Management (Shanghai) Limited 2017-03-23 2017-11-09 2019-03-25 2017-11-09 Invesco Investment Management (Shanghai) Limited 2017-04-13 2017-11-09 Man Investment Management (Shanghai) Co., Ltd. 2017-05-03 Income Partners Investment Management (Shanghai) Ltd. BEA Union Investment Management (ShenZhen) Limited Nomura Investment Management (Shanghai) Co., Ltd. Eastspring Investment Management (Shanghai) Company Limited 2017-10-11 2017-10-25 2018-01-08 2018-03-05 Barings Investment Management (Shanghai) Limited 2018-08-03 2017-09-07 2020-03-10 2019-12-25 2019-06-20 2018-10-16 2019-06-20 Cephei Capital Management (Tianjin) Limited 2018-10-09 2020-11-09 Two Sigma China Co., Ltd. 2018-11-11 Metori China Zhuhai Hengqin) Investment Management Co., Ltd. Power Pacific (Shanghai) Investment Management Co., Ltd. 2019-03-26 2019-04-15 iFAST Investment Management China Ltd. 2019-05-23 Baillie Gifford Investment Management (Shanghai) Limited 2019-05-30 William O'neil Investment Management (Shanghai) Co., Ltd. 2019-06-10 2019-09-11 2020-08-17 2020-07-27 2020-09-22 2020-09-01 2020-04-24 07 Contact us KPMG China is based in 28 offices across 25 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located. KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. We operate in 146 countries and territories and in FY20 had close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been them foundation for accumulated industry experience, and is reflected in KPMG s appointment for multidisciplinary services (including Audit, Tax and Advisory) by some of China’s most prestigious companies. Mainland China Securities Survey 2021 232 © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. 233 Mainland China Securities Survey 2021 Tony Cheung Bonn Liu Head of Financial Services KPMG China +86 (21) 2212 2705 tony.cheung@kpmg.com Abby Wang Head of Asset Management, ASPAC KPMG China +852 2826 7241 bonn.liu@kpmg.com Wilson Huang Head of China Asset Management Partner, Financial Services KPMG China +86 (21) 2212 2428 abby.wang@kpmg.com KPMG China +86 (21) 2212 2409 wilson.huang@kpmg.com Thomas Chan Head of Financial Services Assurance, Mainland China KPMG China +86 (10) 8508 7014 thomas.chan@kpmg.com Silvia Zhang Partner, Financial Services KPMG China +86 (21) 2212 3075 silvia.zhang@kpmg.com Reynold Liu Daniel Zhi Head of Management Consulting Partner, Strategic Consulting of &Technology and Innovation Financial Services KPMG China +86 (21) 2212 3626 reynold.jg.liu@kpmg.com KPMG China +85 (21) 2212 3123 daniel.zhi@kpmg.com Silvester Liu Partner, Digitalization and Fintech Consulting of Financial Services KPMG China +86 (21) 2212 3352 silvester.liu@kpmg.com Sandra Zuo Partner, Financial Services KPMG China +86 (10) 8508 7810 sandra.zuo@kpmg.com Larry Choi Partner, Financial Services KPMG China +86 (20) 3813 8883 larry.choi@kpmg.com David Cheng Partner, Financial Services KPMG China +86 (10) 8508 7916 david.cheng@kpmg.com Vivian Chui Head of Securities & Asset Management, Hong Kong , KPMG China +852 2978 8128 vivian.chui@kpmg.com James Zheng Tracey Zhang Partner, Management Consulting Financial Services Leader, Tax KPMG China +86 (21) 2212 3630 james.zheng@kpmg.com KPMG China +86 (10) 8508 7509 tracy.h.zhang@kpmg.com Rainbow Wang Head of Corporate Finance KPMG China + 86 (21) 2212 3557 rainbow.wang@kpmg.com Joyce Ge Partner, Risk Consulting KPMG China +86 (21) 2212 3295 joyce.ge@kpmg.com Cathy Zhou Partner, AML and Sanctions Regulatory Compliance KPMG China +86 (21) 2212 3289 c.y.zhou@kpmg.com © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. kpmg.com/cn/socialmedia https://home.kpmg.com/cn/zh/home/about/offices.html For a list of KPMG China offices, please scan the QR code or visit our website: https://home.kpmg.com/cn/en/home/about/offices.html The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2021 KPMG Huazhen LLP and KPMG Advisory (China) Limited, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in China. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Publication date: August 2021