CSC Performance Meeting Transcript: Proprietary Trading Strategy Revealed, High Net Worth Client Base Expanded, New Layout for Investment Banking

Recently, the brokerage giant CSC held a third-quarter performance briefing to address concerns from various investors.

All core executives of the brokerage attended and responded to key issues such as the sources of proprietary investment income, the effectiveness of wealth management transformation, and how to cope with "headwinds" in investment banking.

ZiShiTang has summarized the key points of this performance meeting as follows for readers.

Details of Proprietary Trading Operations

In the first three quarters, CSC achieved proprietary business income (investment income + fair value change income - investment income from joint ventures) of 6.851 billion yuan, a year-on-year increase of 28.81%.

This is mainly due to the better performance of the A-share and Hong Kong stock secondary markets compared to the same period last year, as the company actively seized market opportunities and continuously optimized its investment portfolio strategy, reasonably allocating asset structure to achieve steady growth in proprietary business income.

Wealth Management Transformation: High Net Worth Client Numbers Reach a 5-Year High

The company's wealth management transformation has shown significant results, with net income from brokerage business fees reaching 5.757 billion yuan in the first three quarters, a year-on-year increase of 53.8%.

As of now, the company serves over 16 million individual clients, with the number of high net worth clients reaching a 5-year high.

The company's core competitiveness focuses on building a "total and branch linkage, online and offline integration" customer acquisition system, adhering to a customer-centric approach to establish a tiered customer management system, and continuously innovating organizational mechanisms.

In the future, the company will continue to improve asset allocation and buyer service levels, accelerate digital transformation, and achieve high-quality development.

Investment Banking Business Layout

The new "National Nine Articles" and several policy documents for the capital market have been released in succession, with strong regulation, risk prevention, and promotion of high-quality development being carried out in an orderly manner. We are studying relevant policies carefully and strictly implementing them. Since the beginning of this year, with the introduction of the "1+6 policy" for the Sci-Tech Innovation Board, the capital market has entered a new stage of high-quality development.

With our accumulation in client resources, market reputation, and talent pool, we believe that the company's investment banking business will achieve new and better development in this new stage. The company always adheres to a "customer-centric" approach, continuously deepening the "industry + region + product" matrix layout, grasping business opportunities in A-shares, Hong Kong stocks, mergers and acquisitions, REITs, and Sci-Tech bonds, comprehensively enhancing customer comprehensive service capabilities, strengthening collaborative services with related business lines, and promoting high-quality development of investment banking business.

Client Derivatives Business

The competitive advantage of the company's derivatives business is reflected in its comprehensive service advantages and cross-border integrated management advantages, including the richness of product lines, research and trading capabilities, system automation levels, customer service capabilities, and the collaborative capabilities of integrated management at home and abroad.

The essence of the client derivatives business is to provide clients with a variety of risk management tools and asset allocation tools by signing contracts for over-the-counter derivatives such as options and swaps with clients.

Supplementary Capital Movements

The company supplements its capital in a systematic manner, such as striving to maintain a high level of profitability, issuing subordinated debt and perpetual subordinated debt to supplement supplementary net capital, and exploring the possibility of further supplementing equity capital based on actual conditions and market environments