HTSC posts record profits in 2020, on the back of digitalisation push
Published 25 March 2021
On the back of a strong digital push, Chinese financial services major HTSC posted record profits in 2020.
For the whole year, Net Profit grew 20.23 per cent, the company said. This growth was possible due to a combination of factors- with digital push being the strongest one.
During the year, ZhangLe Wealth, HTSC’s flagship wealth management App, has seen monthly active users also set a new securities industry record, exceeding 10 million in July 2020, and continuing to lead the industry for the fifth consecutive year. ZhangLe Wealth is now fully integrated with HTSC’s investment advisory cloud system, providing investment advisors with a platform that greatly supports their decision making and improves their work efficiency, the company said. Also, ZhangLe Global now enables users to tap into the Hong Kong and US stock markets with various offerings.
HTSC saw 3.23 million new clients in 2020, and now boasts a total base of over 17 million. Total assets of client accounts grew significantly to RMB 4.47 trillion, up 41 per cent year-on-year, while the scale of financial products sold increased by 88% year-on-year, amounting to RMB 705.33 billion.
Buoyed by this surge in new users, HTSC’s trading volume of stocks and funds was RMB 34.19 trillion, an increase of 66 per cent year-on-year, maintaining the securities industry’s top spot. Zhou Yi, CEO of HTSC said: “Standing at the new starting point of the 30th anniversary, we are firmly convinced that technology is a key variant in breaking traditions and triggering the reform of business models. We will continue to deepen the technology-empowered ‘two-pronged’ strategy, refine the full-service chain system with the platform-based and ecological development philosophy and build unique brand and competitiveness.”
New frontier with Digital
The advent of the global COVID-19 pandemic hastened the digital transformation and platformization of HTSC’s institutional services, further augmenting the company’s core advantages and adding new value to the overall business chain. HTSC’s US subsidiary AssetMark – a leading US turnkey asset management platform (TAMP) and another advanced digital platform within the Company’s arsenal – also grew steadily, with total assets under management reaching USD 74.52 billion at the end of 2020, up 20.96 per cent year-on-year, bolstering HTSC’s global revenue.
The value of HTSC Connect App, developed for institutional services, was prominently featured amid the ongoing pandemic. HTSC Connect is an open platform which features online application of IPOs, private placement and convertible bond deals, client engagement in research activities, and customization of financial products.
These offerings and services were widely accepted by institutional clients, with registered users of HTSC Connect increasing 24-fold by the end of 2020 compared to the previous year, and more than 200 roadshow livestreams were conducted for listed companies, the company said. HTSC’s digital platforms have bolstered the competitiveness of securities lending business, significantly augmenting the balance of the business, which increased by 984.97 per cent on a yearly basis, to reach RMB 25.41 billion and gain 18.55 per cent of the market share.
Investment trading biz
HTSC’s investment trading business also benefited from the ongoing digital transformation and platformisation, as evidenced by the industry leading OTC (Over The Counter) derivatives and OTC options trading volume in 2020. Since 2015, HTSC has worked with WuXi App Tech on a wide range of projects including its US stock privatization as well as its Shanghai and Hong Kong IPOs, indicating its contribution to the new economy in China.
In 2020, HTSC furthered its support of China’s new economy by facilitating WuXi App Tech in securing over RMB 10 billion in equity financing. HTSC’s 2017 investment in RemeGene has been similarly fruitful, with the Company being the only Chinese sponsor for its Hong Kong IPO in 2020.