THREE Chinese securities companies published their initial public offering (IPO) plans ahead of listings on the Shanghai Stock Exchange, kicking off a fresh round of capital raising for the nation’s brokerages as they fund operations to compete with other financial institutions.

    Guotai Junan Securities, China’s third-largest brokerage by total assets, plans to sell up to 1.525 billion A shares, or 20 percent of its enlarged capital, to shore up its capital base and supplement its working capital, the house said in a preliminary prospectus posted on the website of the China Securities Regulatory Commission (CSRC) late Tuesday.

    The proceeds will go toward improving its underwriting capability, expanding its asset management business and developing innovative business, research and IT systems.

    Guotai Junan has 195 security brokering outlets nationwide. Its 2013 net profit rose 15 percent from the year before to 2.87 billion yuan (US$460 million), or 0.47 yuan per share, while revenue in 2013 grew 15 percent to 8.99 billion yuan.

    Meanwhile, Orient Securities said it plans to sell up to 1 billion shares while Dongxing Securities said it proposed to offer up to 500 million shares, according to their filings to the CSRC.

    Orient Securities is ranked the 12th by total assets among China’s 100-plus securities companies, while Dongxing Securities is ranked 30th.

    None of the three disclosed their fundraising targets or timetables for their listings.

    China’s securities industry bottomed out in 2013 after years in the doldrums as trading volumes picked up while margin trading and short selling transactions increased.

    The combined net profit of China’s 115 securities companies for 2013 was 44 billion yuan, up 34 percent year on year, marking the first rise in earnings in four years, according to unaudited data from the Securities Association of China in January.

    The CSRC posted draft initial public offering prospectuses for 18 firms Monday after the regulator released draft prospectuses for 28 firms Saturday.

    The anticipated IPO resumption follows a two-month flurry of new listings in January and February this year, after regulators let the IPO market go dark for 14 months beginning in 2014, which some said was an attempt to boost sagging stock indices. (SD-Agencies)