Xie Zhongxiang, a reporter from the Securities Times
The taste is still fading.CandycrushgameThe subscription of wealth management products by listed companies continued to shrink.
In the first quarter of this year, the willingness of A-share listed companies to buy various types of wealth management products fell to a freezing point in nearly five years. Whether it is the number of companies that buy wealth management products, or the number and total amount of financial products subscribed for, have reached a new low in the same period of nearly five years.
Some investors in the industry analyzed to the reporter of the Securities Times that with the increasing operating pressure of listed companies and the difficulty of refinancing, the funds and expectations for the purchase of financial products by listed companies have weakened this year in order to ensure capital safety and liquidity demand.
Subscription dropped by 60% in the first quarter compared with the same period last year.
According to Wind data, only 427 listed companies in Shanghai and Shenzhen used their own or idle funds to buy wealth management products in the first quarter of this year, a new low in the same period of nearly five years and halved from 877 in the first quarter of 2023. Between 2020 and the first quarter of 2023, the number of listed companies buying wealth management products fluctuated around 900.
The data also show that in the first quarter of this year, a total of 2271 wealth management products were subscribed by the 427 listed companies, down 51% from the same period last year.Candycrushgame.8%. At the same time, the scale of financial products subscribed by A-share listed companies has also turned downwards. From 2020 to the first quarter of 2023, the scale of financial products purchased by listed companies does not fluctuate much, stable in the range of 330 billion yuan to 370 billion yuan. However, the figure shrank sharply in the first quarter of 2024, to only 128.2 billion yuan, down 60 percent from the same period last year.Candycrushgame.32%.
Generally speaking, there are two main sources of funds for listed companies to subscribe for financial products, one is their own funds, and the other is self-raised funds.
After combing through the data, a reporter from the Securities Times found that among the funds of listed companies that subscribe for financial products in recent years, the proportion of their own funds has decreased. In the first quarter of 2024, the proportion of own funds was 35 per cent, compared with 64 per cent and 51 per cent respectively in the same period from 2020 to 2021.
Behind the reduction of the total scale of financial products purchased by listed companies, one of the major reasons is that the operating performance of listed companies is not satisfactory and idle funds have decreased. Of the 3376 A-share listed companies that have disclosed their 2023 annual reports, combined revenues rose 1.32 per cent year-on-year, while net profit fell 1.84 per cent, according to Wind. Excluding financial companies and "two barrels of oil", A shares have disclosed that the net profit of listed companies has fallen 3.19 per cent year-on-year. Among them, the net profit growth rates of Shanghai and Shenzhen main board listed companies are-1.19% and-2.11%, respectively.CandycrushgameThe net profit growth rates of companies listed on Science and Technology Innovation Board, gem and Beijing Stock Exchange were-28.72%, 1.78% and-16.06%, respectively.
"this year, with the increasing operating pressure and the difficulty of refinancing, the funds and expectations for listed companies to buy wealth management products have weakened." Wanlian Securities Investment consultant qu Fang analyzed to the Securities Times that the listed companies that purchased financial products in the early stage mainly came from the funds raised by IPO and refinancing, as well as idle funds in production and operation. Under the rising operating pressure, listed companies must ensure the safety and high liquidity of funds.
Deposit products have shrunk across the board
From the specific composition of financial products purchased by listed companies in the first quarter of this year, we can see that the vast majority of listed companies still take deposit products as the first choice for allocation. The deposit products allocated by listed companies mainly include deposits, time deposits, structured deposits and notice deposits.
However, compared with the first quarter of 2023, the deposit products allocated by listed companies showed an overall decline in the first quarter of this year.
Data show that from January to March this year, the scale of deposit products purchased by A-share listed companies fell 62.69 percent from the same period last year to 101.632 billion yuan, about 170.753 billion yuan less than the same period in 2023. Among them, the category with the largest decline was notice deposit products, which decreased by 90.49% compared with the same period last year, while structured deposits, time deposits and ordinary deposits decreased by 62.13%, 26.58% and 62.64%, respectively.
In June, September and December 2023, large and medium-sized commercial banks across the country issued announcements one after another, announcing several cuts in deposit interest rates, involving term and demand deposits. According to the latest round of actions, the major state-owned banks have reduced their interest rates on time deposits and large certificates of deposit by 10 basis points, 20 basis points and 30 basis points, with deposit terms ranging from one year to five years. Among them, three-year and five-year varieties have a larger decline.
Bo Wenxi, vice chairman of the China Enterprise Capital Alliance, told the Securities Times that the main reasons for the decline in the scale of financial products purchased by listed companies are related to corporate performance, macroeconomic factors and the decline in the rate of return on investment. for example, the decline in interest rates has led to a decline in the attractiveness of deposit products, and investors' worries about risks have increased.
It is understood that after the bank deposit interest rate was cut in December last year, the five-year listing rate of many major banks has been reduced to 2%, and the yield is generally lower than the cash management products issued by bank wealth management companies.
In addition to structured deposit products, the number of bank wealth management products purchased by listed companies continues to decline. In the first quarter of this year, the amount of bank wealth management held by listed companies decreased by about 11.572 billion yuan, to 11.844 billion yuan, compared with the first quarter of 2023, a drop of 49.42%. This is also the fifth consecutive year of decline in the subscription scale of this category of products.
Listed companies should avoid Lightning in Financial Management
It is worth noting that the financial products purchased by some listed companies with their own funds exploded, resulting in overdue payment or losses during the reporting period, resulting in a significant drag on the net profits of listed companies.
Recently, according to the 2023 annual report released by A-share listed company 263 (002467), the company's revenue and net profit last year fell by 0.61% and 897.37% respectively compared with the same period last year. Among them, 200 million yuan of trust financial management purchased by Zhongrong International Trust was overdue, resulting in a loss of 180 million yuan in the fair value of the trust financial management.
On April 11, Guangyun Technology announced that the company had purchased overdue Zhongrong trust products totaling 90 million yuan in 2023 and had filed a lawsuit against Zhongrong Trust with the people's Court of Xiangfang District of Harbin City, claiming 90 million yuan.
According to incomplete statistics by a reporter from the Securities Times, since 2023, more than 20 A-share listed companies have announced "treading Thunder" Zhongrong Trust products, including Martians, Anji Foods (603696), Fashi Dragon, Jinfang Energy, Chuanzhi Education, Amway shares (300218) and so on.
After the occurrence of the above-mentioned risk events, the scale of trust products purchased by listed companies decreased significantly. In the first quarter of 2024, A-share listed companies subscribed for only 2.694 billion yuan of trust products, down 48.8 percent from the same period last year.
Qu Fang said that the explosion of financial products in recent years has raised the safety awareness of listed companies. In previous years, the financial products purchased by listed companies are often highly related to real estate, but also more inclined to trust, high-yield bonds and so on. With the risk exposure of the real estate industry, the financial products purchased by listed companies in recent years are more inclined to bonds or structured deposits, money funds and other cash assets.
It is worth mentioning that in the first quarter of this year, the subscription of some types of financial products also showed year-on-year growth, but the overall scale of these products is not large, accounting for a limited proportion. Among them, fund special accounts, reverse repurchase and investment company financial management increased by 103%, 93% and 27% respectively compared with the same period last year.
"in the future, listed companies will still consider financial management in the light of macroeconomic conditions and their own needs, but with the downward trend of risk-free interest rates, the returns of cash wealth management products in the market will inevitably be affected. Recently, there have been cases of listed companies laying out equity stocks and fund investments to improve the rate of return on assets on the premise of controlling risk. Of course, at present, the majority of cash products is still the first choice for listed companies to allocate idle funds. " Qu Fang said.