Ping An Securities Granted "Innovation" Qualification
Ping An Securities Granted “Innovation” Qualification
(Shenzhen, April 13, 2006) Ping An Securities Company Ltd. (Ping An Securities), a subsidiary of Ping An Insurance (Group) Company of China, Ltd. (“Ping An”), announced that it had met the criteria specified by the Securities Association of China for securities companies to engage in “innovative” businesses, becoming one of the sixteen “innovative” securities firms in China.
The Securities Association of China embarked on its first trial assessment of securities firms for the “innovative” category in 2004. In general, industry participants hold the view that this innovation qualification is the recognition of a securities company’s business potentials and its standing in the industry. At the same time, the distinction also signifies an ability by a securities firm offering innovative and more sophisticated products, including expansion of operating locations; financial derivative products; collective financial management; asset securitization and securities financing.
Chairman of Ping An Securities Ye Licheng said, the granting of the innovation qualification to Ping An Securities indicates the full recognition by the securities regulator on Ping An Securities’ competitive edge and level of sophistication and success. With this regulatory support Ping An Securities is well positioned to exploit new channels and modes of profit growth for long-term sound development.
“A main reason why Ping An Securities has gained the innovation qualification is its commitment to operating in compliance with the regulations, careful business development, effective risk management, as well as focus on innovation to strengthen its core competitiveness”, knowledgeable sources said. Through the trials and tribulations for the past ten years in China’s securities markets, Ping An Securities has upheld its commitment to regulations compliance, constantly improving its legal and human resources management framework, establishing comprehensive strategies for crisis management and scientific asset protection and risk management systems, along with other monitoring and control mechanisms to provide safeguards for the company’s normal business operations. Furthermore, in line with Ping An’s innovative and forward-looking culture, Ping An Securities has achieved many firsts in the industry, including the first to set up a telephone-automated securities transaction system, the first to establish securities brokerage system, and one of the first securities firms to launch Internet-based transactions.
As the only securities company with direct access to insurance expertise in mainland of China, Ping An Securities benefits from unique advantages in capabilities and brand positioning. With the support of Ping An’s solid performance and substantial client base, Ping An Securities has been able to rapidly enhance its overall competitiveness. Since its establishment in 1996, its total capital has increased to RMB 1.8 billion after two capital increments and share expansions growing from a regional securities firm to a nationwide integrated securities firm.
In recent years, Ping An Securities have seen stable growth in its various businesses. Since 2002, Ping An Securities has collaborated with Ping An’s life and property insurance companies to develop integrated products and services, enabling clients to tap into all the resources of the group with considerable success. In 2004, the company acted as the lead underwriter for four major Initial Public Offerings (IPOs) in the primary market, earning it top ranking for equity offerings, as well as a member of the underwriter group for eight corporate debt transactions. In 2005, Ping An securities actively pushed forward reforms on non-tradable sharesfor listed companies. Of all the listed companies that have announced share reforms, Ping An Securities has successfully sponsored twenty, ranking top five in the industry, including four projects involved in share reform sponsorship on the Shenzhen Small and Medium Enterprises Board where Ping An Securities ranked as the second among all securities firms in China.
