Two Additional Business Qualifications Acquired by JZ Securities: Securities Underwriting and Securi

2015-04-24

According to the latest announcement of JD Capital (430719), JZ Securities Co., Ltd., JD Capital’s holding subsidiary (“JZ Securities”) received the “Reply on Approving Business Qualifications for Securities Underwriting and Securities Asset Management of JZ Securities Co., Ltd.” by the Qinghai Supervision Bureau of the China Securities Regulatory Commission (Qing Zheng Jian Xu Ke Zi [2015] No.6) on April 24, 2015. This signifies that two additional business qualifications, i.e. securities underwriting and securities asset management, have been granted to JZ Securities.

So far, JZ Securities has acquired multiple business qualifications including securities brokerage, securities dealing, securities investment consultation, securities underwriting, securities asset management, NEEQ brokerage and market making, making it a comprehensive securities company.

Comprehensive development led by the investment banking business

The operational headquarters of JZ Securities is in Beijing. As the first domestic securities company with PE origin, the company has inherited the JD Capital’s innovative nature ever since it became one of JD’s subsidiaries, which expanded the business by focusing on the more challenging investment banking business rather than securities brokerage.

From an internal document obtained from JZ Securities, the journalist learned that the company will give investment banking business the leading role while building a whole business chain comprising of direct investment, asset management, fixed income, securities brokerage, market making and securities margin trading. The company aims to form its competitive advantages in terms of IPO, M&A, direct investment, bond underwriting, internet finance, NEEQ market making and high-end private wealth management in a swift fashion.

“There is no such thing like ‘business department’ in JZ’s planning.” A senior executive of JZ Securities said that the company has two service systems, i.e. the offline system and the online system. The offline system refers to 31 branch companies in different provinces, autonomous regions and municipalities, providing specialized service for enterprises, institutions and high net-value clients; the online system, by giving full play to its late-developing advantages, fully explores into the perfect integration between securities and internet finance.

“We plans to launch a pioneer online product with the best customer experiences in the near future. We believe that, once launched, it will soon occupy the relevant markets,” revealed by the senior executive.

Growing big with both existing and additional resources

Benefiting from the abundant resource reserves of JD Capital, JZ Securities is moving forward steadily from the start of its businesses.

There have been almost 300 JD Capital-invested companies, and the number is still on a steady increase annually. In the future, many additional investment cases will form a linkage mechanism with JZ Securities, meaning that business offered by JD Capital alone can be sufficient for driving its investment banking business to develop by leaps and bounds”, said the senior executive.

In the field of asset management, JD Capital has over 1,000 high-net value client resources, which is expected to enable JZ Securities to rapidly form its competitive advantage in terms of high-end private wealth management.

While the company stems from JD Capital, it is not restricted to such origin. It is known that, apart from being supported by shareholders’ resources, JZ Securities plans to establish its powerful business development system and marketing service system which radiate its profound influence across the whole country. “The foundation of branch companies nationwide are expected to provide large amounts of additional resources for JZ Securities”, the senior executive claimed.

Talking about the corporate vision, the senior executive revealed to the journalist that JZ Securities is to carry on JD’s innovative spirit. Based on its sound corporate governance structure, acute reaction mechanism, competitive incentive system and high executive power, the company will strive to become a domestically-leading and characteristic first-class security service provider within three to five years.