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Commodities: New waves

In recent days, 42 pure securities operation A vouchers were fully disclosed in 2022. The wind data show that 42 vouchers achieved total operating income of $488,64 million in 2022, a decrease of 23.55 per cent, and a combined net return of $1266,944 million, a decrease of 33.66 per cent.

Of the 42 companies, Chinese securities received the highest and net profits in 2022, leaving a larger gap with the second; the Redta securities received the lowest in 2022; and the wind securities with the lowest net profits at a loss of more than $1.5 billion.

In 2022, out of 42 companies, only four securities in East Wu, Shanxi, Tata, Wallinite, and all of the remaining 38 companies received a similar decline; only securities in the form of positive growth in net profits and securities in the form of an increase in profits, but the net profits of the remaining 40 companies declined.

The wind data show that wind-controlled indicators, such as net capital, for many vouchers, are consistent with the downward trend in performance. Of these, the liquidity coverage of Chinese securities has been advanced for two consecutive years in 42 tickets and has decreased by 10 percentage points in 2022 over 2021. More importantly, after a 223 billion yuan renminbi equity fund-raising, many wind-controlled indicators remain inward.

Medium-term liquidity coverage for two consecutive years

In 2022, Chinese securities earned an operating income of $6510.9 million, a decrease of 14.92 per cent as compared with a net return of $21.317 million, a decrease of 7.72 per cent. Despite a decline in performance, Chinese securities are still in a position of “collateral traders”.

While performance indicators, such as camp receipts and net profits, are at the top of the industry, the main mobile wind control indicators of securities are ranked behind and even advanced. The capital leverage rate was 26 out of 46 companies; the net stabilization rate (129.64 per cent) was 40, or 3 in the penultimate; the risk coverage was 31; and the liquidity coverage was the first.

Under the Management of Securities Companies Risk Control Indicators (hereinafter referred to as the Approach), liquidity coverage = 100 per cent of high-quality liquid assets/currency net cash outflows for the next 30 days; net stabilization rate = 100 per cent of the stable funds available/sustained financial resources required.

In February 2022, Chinese securities received $23.3 billion in equity, complementing huge amounts of money. In the distribution reserve cases issued, the Chinese securities claim that the purpose of the equity fund-raising is to reduce liquidity risk and to increase corporate risk resilience.

However, the actual result is that, although the size of net capital and assets in intermediate securities has expanded, many wind-controlled indicators remain rankings, in particular the two-year pad for liquidity coverage, 140,76 per cent for 2021, 13.5 per cent for 2022 and lowered by 233 billion yuan renminbi.

Renewed capital leverage

Of the 42 vouchers, capital leverage was lowest in 2022, at 10.89 per cent, compared to 13.11 per cent in 2021, at 16.93 per cent.

Under the terms of the Approach, the capital leverage formula is “core net capital/total domestic and external assets x 100 per cent”, and the indicator reflects to some extent the holding of disposable funds by vouchers.

In 2022, the core net capital of the dams was $5,516.1 million, a decrease of 11.56 per cent, compared with a total of $5202.95 million in surface and off assets, an increase of 8.07 per cent. It is worth noting that there has been a significant increase in assets outside the Schengen area.

The risk control indicator system, with net capital at its core, is clearly defined in the methodology adopted by the Board. Net capital is not only an important indicator of the level of bonded business control, but also a more mobile and rapidly realizable portion of net assets of vouchers, measuring stock company capital adequacy and liquidity.

The core net capital, in turn, is a central component of net capital and an indicator that better reflects the liquidity of corporate assets. Thus, the reduction in the core capital of an ambitious source, the expansion of out-of-pocket assets and capital leverage mattresses are sufficient to illustrate the increased risk of corporate liquidity.

It is a matter of concern that the increase in the loss of credit from an ambitious source is high among the 42 vouchers. In 2022, corporate credit reduction losses amounted to $1,424 million, an increase of $902 million, or 17.284 per cent, compared to the same increase.

The huge increase in the loss of dampened credit is associated with the high-fixed equities deposit operations, with multiple-coded “rearms” marked by the highest-law, as detailed in articles such as “the old-fashioned” of the Schengen-source portfolio operation, and the workers’ remuneration is not reduced.

Net capital decline for mountainous securities

The data show that, as at the end of 2022, the total assets of the securities industry amounted to $1,106 million, with net assets of $279 million and net capital of $209 million, respectively, representing an increase of 4.41 per cent, 8.52 per cent and 4.69 per cent over the end of the previous year.

The wind shows that the net capital of 42 billers at the end of 2022 was $1541.2 million, an increase of 5.2 per cent. Despite the overall growth in net capital in the industry, the net capital of 23 bunkers has also declined, with the largest decline in mountain securities, which is 11.99 per cent.

In 2022, net capital for mountain securities was $106,898 million, a decrease of $1456 million, or 11.19 per cent, from 2021. In 2022, the company achieved an operating income of $4,416.1 million, an increase of 1.17 per cent, as compared with a net profit of $567 million, a decrease of 30.2 per cent.

Net capital is not only an important indicator of the level of bonded business control, but also a relatively mobile and fast-cash component of net bookshop assets, which is an important condition for future performance of vouchers, because of the pattern of “capital sizes to determine the scale of performance”, especially of high liquidity. The decline in net capital in mountain securities is a negative signal.

Net capital size, 2022