With $558.5 trillion in global OTC derivatives notional contracts outstanding, six times the size of the real economy, the derivatives market is huge bringing potentially huge revenue and profit opportunities.

Whether in terms of intrinsic value valuation, ROE valuation is value for money, and growth indicators also significantly exceeded the indicators of other types of financial institutions. If purchased at an appropriate price, it can achieve value preservation and appreciation.

At present, the SFC licensed a total of 149 futures companies, a total of 161 futures in 2011, the number of futures companies in the last decade has not increased but decreased, from the data analysis of the last decade the SFC should encourage mergers and acquisitions rather than new futures companies, of which nearly 70 brokerage firms class, and strategic investors such as mining and spot enterprises, the potential sale of futures companies less than 10, while the potential demand side of 4,000 banks, local 30 financial control groups, large spot enterprises trade groups at least hundreds of potential demand parties such as more than 300, more strongly is the total of 133 securities companies and 60 have not yet obtained supporting futures companies, is expected to further intensify the competition for existing futures companies mergers and acquisitions, so the futures companies controlling interest for sale is a strategic scarce assets.

Mergers and acquisitions of futures companies have important strategic and commercial value, and the situation is pleasing, compelling and not waiting for others. It has become an important business area indispensable for financial and spot enterprises, and it is imperative for commercial banks, investment banks, foreign banks, financial control groups and commodity industry chain institutions to build derivatives platforms.

I. Overview of the development of derivatives trading

Global Derivatives Market Development Overview

According to the Bank for International Settlements (BIS) data, as of the end of 2019, the global OTC derivatives outstanding notional contracts amounted to $558.5 trillion, and according to the World Bank's public information,2019 the total global economy is about $87.752 trillion, the total amount of derivatives far exceeds the real economy and the total amount of funds.

The Futures Industry Association (FIA) released in mid-July the OTC derivatives trading data of 81 exchanges worldwide in the first half of 2020. According to the statistics, the global futures and options turnover in the first half of 2020 was 21.869 billion lots, an increase of 32.10% year-on-year, and the scale of transactions continued to grow.

Table: 2019 Global Derivatives Trading Volumes (in units: received Unilateral basis)

From the situation abroad, it is still mainly institutional clients, professional investors. It is a good thing that a large number of retail clients are coming in to increase market liquidity, and this volume may rise in the future, but more corporate institutional clients, including large volume clients, banks, insurance companies, professional investment companies, asset management companies and so on, these companies will enter the market, and the scale of our market will have unimaginable development. Because the futures market is more of a zero-sum game, more customers come in seeking a kind of hedging and risk avoidance, which can play a great role in his industry, asset management, capital protection, exchange rate protection, etc., especially in the case of the full development of the capital market, the Chinese market should be said to have not developed much in terms of product innovation, and the future (development) space is also The future (development) space is also very large.

China is a major manufacturing country, but also the world's second largest economic power, and the largest country in terms of supply and demand for many commodities, according to China in the global exchange volume ranking are after the tenth, there is still a lot of room to rise.

The Chinese futures market is managed by the China Securities Regulatory Commission under the leadership of the State Council. The futures exchanges are membership-based, with the shareholders of the China Financial Futures Exchange consisting of the major exchanges, and futures companies providing traders with services such as account opening and trading as members, with some spot companies or financial institutions also gaining seats to participate in trading as hedgers. The four major futures exchanges centralize the aggregated trading mechanism and self-regulation, and the market is dominated by electronic trading, with numerous software companies providing trading systems and clients. The China Futures Association is responsible for the self-regulation of the futures industry, and a "five-in-one" futures regulatory and coordination mechanism has been established in China's futures market. The CSRC is responsible for the unified leadership, coordination, supervision and inspection of the regulatory coordination mechanism. The CSRC and local securities regulatory bureaus supervise and manage futures companies and their branches. The futures exchanges and the China Futures Association exercise self-regulation of futures companies in accordance with relevant laws, administrative regulations and the constitution and rules of the institutions. The futures margin monitoring center monitors the margin of customers. The purpose is to form a working network with clear division of labor, orderly coordination, smooth operation, rapid response and effective supervision.

Source: Thousand Interbank Asset Information Network

By the end of 2019, there were 75 futures options varieties in the Chinese futures market, including metals, agricultural products, energy chemicals, stock indices, bonds and other series, basically covering most of the commodities and financial futures options related to the country's livelihood. The latest statistics from the China Futures Industry Association (CFIA) for 2019 show that the cumulative volume of the national futures market was 3,962,077,706 lots and the cumulative turnover was 290,608,543 million yuan, up 30.81% and 37.85% respectively year-on-year.

Figure 1 China Futures Market Volume and Turnover, 2001-2019

Source: China Futures Industry Association Thousand Interbank Asset Information Network

II. Overview of China Futures Exchange

There are four major domestic derivatives exchanges: Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange and China Financial Futures Exchange, with a total of 77 varieties of futures options listed as of July 2020. Several varieties of turnover occupy the first place in the world.

Table 1 Top 20 Global OTC Derivatives Exchanges, 2019

Source: FIA China Futures Industry Association Thousand Interbank Asset Information Network

Ranked by over-the-counter trading volume, China occupies three of the four largest exchanges in the world in 2019, ahead of developed markets in Europe and the United States, making it the top market for China in the global financial markets.

Table 2      Top 10 Global OTC Derivatives Exchanges, 2019

Source: FIA China Futures Industry Association Thousand Interbank Asset Information Network

III. Futures companies

Futures Company Overview

As of the end of 2019, the total number of futures companies in China is 149, which remains unchanged from the number of futures companies at the end of 2018. From the analysis of the data in the past three years, the SFC should encourage mergers and acquisitions rather than the establishment of new futures companies, 149 futures companies are carrying out brokerage business, the number of business departments is 1,903, 115 futures companies are qualified for investment advisory business, 129 futures companies are qualified for asset management business qualification, 84 futures companies completed the risk management company business pilot filing, and a total of 86 risk management subsidiaries were established. 2019 saw a breakthrough in financing for futures companies through the main board of the domestic capital market, with South China Futures listed on the main board and Rui Da Futures listed on the SME board. As of the end of 2019, the H-share listed companies were Luzheng Futures and Hongye Futures, and 15 futures companies were listed on the New Third Board, namely Genesis Futures, Yongan Futures, HNA Futures, Tianfeng Futures, Hualong Futures, Dayoshi Futures, Xianrong Futures, Guangzhou Futures, Maike Futures, Bohai Futures, Fuyang Futures, Chaos Tiancheng, Jinyuan Futures, Changjiang Futures and Haitong Futures.

Comparison of the number of futures companies and business departments in the past three years

Source: Securities and Futures Commission (SFC), Mid-term Association (MEA), Thousand International Investment Bank

As of December 31, 2019, the number of practitioners registered with the China Futures Association ("CFA") ("Association") was 64,992, with 61 foreign nationals, Hong Kong, Macau and Taiwan working for futures companies.

Risk and Compliance Management

As of the end of 209, the net capital of futures companies was 71.746 billion yuan, and 22 futures companies had net capitalization of more than 1 billion.

According to the "Regulations on Classification and Supervision of Futures Companies" issued by CSRC in February 2019 (revised on February 15, 2019), CSRC determines the classification and supervision category of each futures company based on the risk management capability of the futures company, combined with the company's ability to serve the real economy, market competitiveness, and continuous compliance status.In 2019, among 149 futures companies in the industry, the number of Class A futures The total number of companies is 37, the same as in 2018, with the number of AA-rated futures companies decreasing to 14 from 19 in 2018; there are 91 Class B futures companies, 14 Class C and 7 Class D.

On October 1, 2017, the CSRC implemented the Measures for the Management of Risk Supervision Indicators of Futures Companies, which further improved the adaptability and effectiveness of the risk supervision indicator system of the futures industry. The status of the measured, risk-based regulatory indicators for each futures company is as follows.

1. Net capital are higher than RMB 30 million

As of the end of 2019, the net capital of 149 futures companies nationwide was RMB 71.746 billion, or an average of 482 million each, with all futures companies having a net capital higher than RMB 30 million, of which CITIC Futures had the highest net capital of RMB 4.3 billion and Orient Capital had the lowest net capital of RMB 36.8771 million

2. Net capital and risk-based capital reserve ratio are both higher than 100%

By the end of FY29, the risk capital reserve of 149 futures companies nationwide was 7.13 billion yuan, and the ratio of net capital to risk capital reserve of all futures companies was between 08.1% and 3806%, all of which met the regulatory requirement that the ratio of this to risk capital reserve was higher than 100%.

3. Net capital and net assets ratio are higher than 20%

All 149 members nationwide, meet the regulatory requirement that the ratio of net capital to net assets should not be less than 20%.

4. The ratio of current assets to current liabilities is above 100%.

As of 2019, 149 futures companies nationwide had current assets (net of customer equity) of $99.074 and current liabilities (net of customer equity) of $1.574 billion, with a ratio of current assets to current liabilities of 5,636.36% as of the end of 2019. The ratio of current assets to current liabilities of all futures companies ranged from 169.30% to 8550.3%, all of which met the regulatory requirement that the ratio of current assets to current liabilities should not be less than 100%.

5. The ratio of liabilities to net assets of futures companies are less than 150%

As of 2019, the ratio of liabilities (net of customer equity) of 149 futures companies nationwide was $17.065 billion to net assets of 14.10%. The ratio of liabilities to net assets of all futures companies ranged from 1.20% to 119.50%, all meeting the regulatory requirement that the ratio of liabilities to net assets should not be higher than 150%.

Main business: Brokerage business

National futures companies' brokerage business receipts in 2019 were 12.90 billion yuan, up 3.06% year-on-year, accounting for 47.16% of total operating revenues. Futures companies traded $273.88 trillion in agency transactions, up 38.56% year-on-year.

Source: Securities and Futures Commission (SFC), Mid-term Association (MEA), Thousand International Investment Bank

Main business: Investment consulting business

In 2019, 59 futures companies achieved receipts from investment advisory business, totaling 149 million yuan, down a total of 1.98% year-on-year and accounting for 0.54% of business receipts. Among them, there were four companies with receipts of more than 10 million yuan from this business.

Source: Securities and Futures Commission (SFC), Mid-term Association (MEA), Thousand International Investment Bank

Main business: Fund management business

In 2019, 121 futures companies achieved receipts from their asset management business, totaling $773 million, down 3.38% year-on-year, with a total of 18 companies with receipts of more than $10 million from this business.

As of the end of 2018, 112 futures companies and their custody subsidiaries were engaged in asset management business, and as of the end of 2018, 112 futures companies and their custody subsidiaries were engaged in asset management business, and 1,809 custody products of futures companies were in existence, with the scale of assets under management of 127.6 billion yuan, and the scale of investment in the securities market of custody products of futures companies was 64.6 billion yuan, accounting for the management of futures custody business The scale of investment in the securities market by futures companies was RMB 64.6 billion, accounting for 50.6% of the management scale of futures management business. Among the securities market investments, the scale of investment in stocks was 13.2 billion yuan, accounting for 10.3% of the total scale of futures management; the scale of investment in bonds was 37.4 billion yuan, accounting for 29.3%; the scale of investment in securities investment funds was 5.6 billion yuan, accounting for 4.4%; and the scale of investment in futures was 1.9 billion yuan, accounting for 1.5%. The top 20 futures companies accounted for 78.1% of the total.

Top 10 futures companies in terms of private equity management size and their size at the end of 2018

Source: China Securities Investment Fund Association AMAC Thousand International Investment Bank

Main Business: Risk management business

As of the end of 2019, a total of 86 risk management companies have filed through the association, of which 74 companies have filed warehouse receipt service business, 80 companies have filed basis trade business, 46 companies have filed cooperative hedging business, 64 companies have filed OTC derivatives business, and 45 companies have filed market making business. 86 risk management companies have total assets of 62.174 billion yuan, up 81% year-on-year; net assets of 21.949 billion yuan, up 39% year-on-year. The total assets of 86 risk management companies were RMB 62.174 billion, an increase of 81% year-on-year; net assets were RMB 21.949 billion, an increase of 39% year-on-year. The annual business revenue was 178.004 billion yuan, up 57% year-on-year; the annual net profit was 405 million yuan, up 130% year-on-year.

The cumulative new notional principal amount of OTC derivatives business in 2019 for forwards, swaps and options all achieved growth, with the swaps business growing the fastest at 235% (see Table 2-2-3).

New Changes in OTC Derivatives Business of Risk Management Companies 2018-2019

The risk subsidiary business can be benchmarked against trade finance companies, such as international Canco and domestic Yuanda Holdings.

Kanone

Canadean Strata AG is a global commodity trading giant. Founded in 1974 and headquartered in Baar, Switzerland, it is a leading producer and operator of commodities worldwide. Initially engaged in the physical marketing of ferrous and non-ferrous metals, Canco soon expanded into minerals, crude oil and petroleum products. In the early 1980s, Canco established the Dutch trading company for grain purchases and formed the Basic Agricultural Products Group.

Canco's Global Marketing Operations has over 50 offices in more than 40 countries and employs over 2,000 people, while its Industrial Operations has 15 plants in 13 countries and employs over 50,000 people. 2010 revenues were US$145 billion. Total assets amounted to US$79.8 billion, and the total capital of Canadean's shareholders was US$19.6 billion as of December 31, 2010. The company's customers are located all over the world and are involved in a wide range of industries, such as automotive, oil, power, steel production and food processing.

Canco also holds a number of publicly traded companies, including a 34.5% interest in Xstrata PLC, one of the world's largest mining companies; a 44% interest (39% voting rights) in Century Alunimun, Switzerland; a 70.6% interest in Minara Resources, Australia; a 72.2% interest in Katanga Mining, DRC; and a 32.2% interest in Recylex, France. 70.6%, Katanga Mining (DRC) 72.2% and Recylex (France) 32.2%.

Far Eastern Holdings

Ltd. (hereinafter referred to as: the Company) was established in June 1994, and the Company's A shares were successfully issued and listed on the Shenzhen Stock Exchange in October 1996 (stock code: 000626, stock abbreviation: Yuanda Holdings).

Ltd. (hereinafter referred to as "Yuanda Logistics"), a wholly-owned subsidiary, is the core business entity of the company. Ltd. (hereinafter referred to as "Yuanda Logistics") is mainly engaged in commodity trading, export and warehousing and logistics business. After more than 20 years of development, Yuanda has established strategic partnerships with many Fortune 500 companies or industry giants upstream, has more than 30 wholly-owned and holding subsidiaries across the country, and has set up business organizations in many overseas regions, and its annual sales have exceeded RMB 100 billion, and has been continuously listed among the top 500 Chinese enterprises.

Financial analysis of futures company operations

In recent years, the scale of China's futures and derivatives market has been steadily expanding, and the ability to serve the real economy has been improving. At present, there are 77 futures and options listed, basically covering agriculture, energy and chemicals, metals, finance and other important areas of the national economy. Chinese futures prices represented by copper, iron ore, PTA, crude oil, gold, oil and oilseeds, etc. have gradually played an international influence, better promoting China's real enterprises in international trade and fair competition, the financial market transactions are also exceptionally active, is a financial market with international height and influence.

By the end of 2019, futures companies totaled 149, with total assets of 645.246 billion yuan and net assets of 121.429 billion yuan, up 25.52% and 10.34%, respectively, year-on-year, with enhanced capital strength.

The 43 futures companies counted as of May 2020 had a combined net profit of 4.513 billion yuan in 2019, of which 16 futures companies had a net profit of over 100 million yuan. 149 futures companies nationwide achieved a total net profit of 6.05 billion yuan in 2019, up 365.24% from 1.299 billion yuan in 2018.

The major businesses of futures companies include brokerage business, investment advisory business, asset management business and risk management company business. Overall, the revenue of traditional brokerage business has declined, while the revenue of risk management company business among the innovative businesses has continued to improve and has become the main performance highlight of futures companies (Table 10). Specifically, the revenue from brokerage business in 2019 was 12.843 billion yuan, up 2.44% year-on-year; the revenue from investment consulting business was 142 million yuan, down 9.55% year-on-year; the revenue from risk management business was 773 million yuan, down 3.38% year-on-year, and the number of risk management products totaled 1,217 as of the end of December, with a product size of 142.963 billion yuan, compared with the end of 2018 127.634 billion yuan, an increase of 12.01%; risk management company business income of 178.004 billion yuan, an increase of 57.18% year-on-year.

Table 3 Classification of business income of futures companies

Source: China Futures Industry Association Thousand Interbank Asset Information Network

IV. Valuation of futures companies

4.1.1 Value analysis: is it scarce?

At present, the SFC licensed a total of 149 futures companies, a total of 161 futures in 2011, the number of futures companies in the last decade has not increased but decreased, from the data analysis of the last decade the SFC should encourage mergers and acquisitions rather than new futures companies, of which nearly 70 brokerage firms class, and strategic investors such as mining and spot enterprises, the potential sale of futures companies less than 10, while the potential demand side of 4,000 banks, local 30 financial control groups, large spot enterprises trade groups at least hundreds of potential demand parties such as more than 300, more strongly is the total of 133 securities companies and 60 have not yet obtained supporting futures companies, is expected to further intensify the competition for existing futures companies mergers and acquisitions, so the futures companies controlling interest for sale is a strategic scarce assets.

4.1.2 Price assessment: What is the right price? What is the future rate of return?

A combination of income approach, PE, PB, growth rate, and return on net capital can be used for valuing bank assets.

After years of development, a large number of futures companies have gained the favor of the capital market and are listed on the New Third Board, A-share and Hong Kong stock markets.

Table 4 Statistics of futures companies listed

Source: Thousand Interbank Asset Information Network (Applet: Asset Information)

Table: Statistical description of comprehensive enterprise assessment

Data source: wind 千際投行

The market is very much in pursuit of futures companies, with valuation multiples far exceeding those of banks, insurance, securities, trusts, spot companies, integrated financial control groups, etc. The main reason is that the scale of the futures market is expanding, and contracts and varieties as well as innovative categories of financial instruments are being generated, and the difference between the Chinese derivatives market and the products and services of developed international financial markets is still large. Adding up several mainstream items, it is expected that the annual net income of occupying 1% of the market share is more than 154 million, which should be worth 1 billion according to the PE valuation of 123 times 1% discount of A shares, and should be worth 400 million according to the PB valuation of 4 times 1% discount of A shares, with a comprehensive arithmetic average of 640 million. By paying about 400 million license fee is far below the intrinsic value.

Table: Valuation and financial analysis

Source: Thousand Interbank

If you follow the return on equity bank ROE assets, such as a listed commercial bank ROE is 15.12% in 2019, assuming 400 million yuan to purchase, income less management fees labor costs 20%, taxes 25%, occupying 1% of the market can reach the remaining net profit of 0.85 billion per year; ROE reached 20%, more than the existing business profit ROE, is a good pry profit to improve ROE tool. And the license does not produce depreciation like machinery and equipment, and it is highly likely that the market price is getting higher.

The growth indicator PEG can be referenced by the annual trading volume and transactions in the derivatives market, with an average annual growth of more than 20% regardless of price increases or decreases (net of the decline due to policy restrictions on the China Financial Futures Exchange). The overall market growth rate is also higher than the current 2.39% of a listed commercial bank.

So it is good value for money in terms of intrinsic value, ROE valuation, and growth metrics that substantially exceed traditional banking metrics. If you can buy it at the right price, you can achieve the role of value preservation and appreciation.

V. Analysis of futures company holding subjects

Bank participation in futures business

There are still some restrictions on the participation of commercial banks in futures companies in China, so far only Construction Bank's Jianxin Futures and Industrial Bank's Industrial Futures, banks still hold shares in futures companies indirectly, but looking at the international commercial banks are the largest participants in the futures market.

According to the Bank for International Settlements (BIS) data, as of the end of 2019, the global OTC derivatives outstanding notional contracts amounted to $558.5 trillion, according to the World Bank public information,2019 the total global economy is about $87.752 trillion, the total amount of derivatives far exceeds the real economy and the total amount of funds, from the experience of U.S. commercial banks, commercial banks put traditional business and derivatives trading, clearing and brokerage business depth combination to become an important player in the market, as of the end of 2019 U.S. commercial banks hold derivatives notional contracts amounted to 171.5 trillion U.S. dollars, converted into RMB 1166 trillion yuan, is a blue ocean market, but also one of the core competencies of the top U.S. commercial banks, domestic commercial banks have begun to merge futures companies Futures commission merchants FCM statistics of the U.S. derivatives business customer capital size has exceeded $200 billion, banks account for more than 92%, commercial banks are important participants in the derivatives market, derivatives business brings lucrative profits for commercial banks.

The top ten U.S. brokerage companies doing futures are investment banks or companies with a banking background, like Chase, JP Morgan, Goldman Sachs, Fabon, Citi and other companies with a banking background, which is in the top ten in terms of the size of its trading volume. The brokerage companies that really focus on brokerage business and do channel service business are after ten, and its scale is also much smaller than the scale of the top ten companies.

Why did such a pattern emerge? It also reflects the development of the U.S. market to a certain extent, a large number of transactions through the bank, through a series of product operations, a very noteworthy phenomenon is that, for example, Goldman Sachs futures business in its securities investment department under the management of the derivatives department, its back office, research and development have been integrated into the entire company system to go. This department is already a department in operation, but the business variety and business integration has been integrated into the whole company system, not an independent company, but the business volume is very huge.

Goldman Sachs, for example, does not have marketing staff, and does not need to do marketing and pull clients like general domestic futures companies, which do not have these. It is a very large capital management group, including customer asset management, business innovation, variety management, in the process of mergers and acquisitions and OTC market betting management has been incorporated into the system. Therefore, the entire trading volume, asset size can attract high-end customers and corporate institutions, of course, Goldman Sachs is only a corporate institutional clients, general retail investors do not do, it has been very large scale.

Other similar like JP Morgan is also the same, it through the bank or investment banking background, its customer resources and customer volume are very powerful, and some small brokerage companies are very difficult, the United States 10-30 brokerage companies are relatively good days, there is a profit, but ranked more than 30 brokerage companies after this year or two of the business situation is not too ideal. The U.S. market in the past one or two years, the entire level of trading volume is declining, the level of commissions is declining, the main source of interest income for brokerage companies is almost gone. This situation also led to a large number of small and medium-sized U.S. brokerage companies operating very difficult, and confidence in the market is not very full.

There is a lot of potential for banks to participate in the futures market.

Participation of foreign institutions in the futures market

In 2019, the China Securities Regulatory Commission (CSRC) will orderly promote the implementation of the "" related work, handling a total of seven new futures companies to set up or increase the capital of overseas operating institutions for the record, and supporting eligible futures companies to set up subsidiaries in countries and regions along the "Belt and Road".

The SFC announced that since January 1, 2020, the restriction on foreign shareholding in futures companies will be abolished, and the relevant entities may submit applications for administrative licenses to me in accordance with the relevant provisions, and the proportion of foreign investors holding equity in futures companies may be up to 100% if they meet the conditions. The SFC further clarified that since April 1, 2020, the restriction on the ratio of foreign investment in fund management companies will be abolished nationwide; since December 1, 2020, the restriction on the ratio of foreign investment in securities companies will be abolished nationwide.

Table: List of Foreign Futures Firms

Participation of local financial control groups and other large financial institutions in the futures market

The participation of local financial holding groups in futures companies is an important part of building a complete local financial system and promoting the development of the local financial industry. The acquisition of futures companies by some trusts and corporate financial control platforms also lays the foundation for complete product lines and service content.

Table: Local financial control platform participation in futures companies

Participation of securities companies in the futures market

The core spot of the futures market is stocks, stock indices, bonds, etc., while the securities market needs to hedge, arbitrage and add or subtract leverage through the futures market, so securities trading and futures trading complement each other and are the most core part of the OTC exchange, and the scope of business of securities companies is indispensable for futures options derivatives. Almost all top-ranked securities companies have already acquired futures companies, so some people say: securities companies either have already acquired futures companies or are on the way to acquire futures.

Table: Securities-based futures companies

Data source: Thousand Interbank

Commodity-related companies participate in the futures market

The origin of futures comes from the U.S. commodity trade. The most varieties of futures market are non-ferrous metals, precious metals, ferrous metals, agricultural products, livestock, energy, chemicals, primary industrial raw materials and other commodities, etc. The most contracts in the futures market are also commodity futures. A large number of commodity production, trade and supporting service enterprises have set up futures companies or business departments to serve the company's operations.

Table: Commodity-based Futures Firms

Sixth, the futures company equity M & A project target recommendation

Item 1: License Name: Futures Company

Transaction method: Equity transaction, 51%-100% can be offered

Quote: 400 million.

Source: Asset Information Network License and Shell Resources section (applet: Asset Information)

Item 2: License Name: Futures Company Equity Transfer

Transaction method: Equity transfer.

Price: 750 million

Source: Asset Information Network Licensing and Shell Resources section (https://www.zichanxinxi.com/sale/list_t81v.html)

VII. Conclusion

With $558.5 trillion in global OTC derivatives notional contracts outstanding, six times the size of the real economy, the derivatives market is huge bringing potentially huge revenue and profit opportunities.

At present, the SFC licensed a total of 149 futures companies, a total of 161 futures in 2011, the number of futures companies in the last decade has not increased but decreased, from the data analysis of the last decade the SFC should encourage mergers and acquisitions rather than new futures companies, of which nearly 70 brokerage firms class, and strategic investors such as mining and spot enterprises, the potential sale of futures companies less than 10, while the potential demand side of 4,000 banks, local 30 financial control groups, large spot enterprises trade groups at least hundreds of potential demand parties such as more than 300, more strongly is the total of 133 securities companies and 60 have not yet obtained supporting futures companies, is expected to further intensify the competition for existing futures companies mergers and acquisitions, so the futures companies controlling interest for sale is a strategic scarce assets.

Whether in terms of intrinsic value valuation, ROE valuation is value for money, and growth indicators also significantly exceeded the indicators of other types of financial institutions. If purchased at an appropriate price, it can achieve value preservation and appreciation.

Mergers and acquisitions of futures companies have important strategic and commercial value, and the situation is pleasing, compelling and not waiting for others. It has become an important business area indispensable for financial and spot enterprises, and it is imperative for commercial banks, investment banks, foreign banks, financial control groups, commodity industry chain institutions and Internet groups to build derivatives platforms.

Thousand Interbank: Qualified M&A Services Specialist

Qianji Investment Bank is a leading investment bank in China, providing investors with financial license buying and selling intermediation, company equity and debt M&A buying and selling, transactions of non-performing assets and stock assets, real estate value analysis reports, M&A restructuring and the whole process of investment and financing financial advisory and consulting services. The professional team is the first choice of many institutions and has a high success rate.

The service targets are: company acquisition and disposal, securities consulting, securities companies, futures companies, private equity funds, fund sales companies, SGS members, banks, trust companies, insurance companies, third-party payment, financial leasing companies, loan companies, shell resources of listed companies, shell resources of Hong Kong and U.S. stocks, pawn companies, auction companies, guarantee companies, real estate mergers and acquisitions, investment strategy consulting, etc.

Provide recommendation and full process service of M&A targets for comprehensive members of Shanghai Gold Exchange. Provide gold member business and management consulting, trader and executive talent recommendation services.

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