Nanjing Securities Co., Ltd.: history, ownership, mission, how it works & makes money

Founded on November 23, 1990 in Nanjing and listed on the Shanghai Stock Exchange under the ticker 601990, Nanjing Securities has evolved from a regional broker into a diversified financial firm-expanding into futures, margin trading and investment banking by 2014, launching a proprietary trading arm in 2018, and reporting steady growth with revenue of CNY 2.27 billion in 2020 (+3.82% year‑on‑year) and a striking net profit of CNY 999.3 million in 2024 (a 48% increase), while managing approximately 3.69 billion shares outstanding with a market capitalization of CNY 29.75 billion as of July 2025; insiders hold a substantial 54.22% stake and institutional investors about 9.07%, the company paid a dividend of CNY 0.16 per share (yield 2.01%) in 2024, and it now operates across brokerage, investment banking, asset management and proprietary trading-leveraging technology, ESG integration, research capabilities and regional strength in Jiangsu to generate commissions, underwriting and advisory fees, management and performance fees, trading gains, and interest income (next estimated earnings date: April 28, 2026), all of which set the stage for a deeper look at how Nanjing Securities makes money and where it is headed

Nanjing Securities Co., Ltd. (601990.SS): Intro

• Founded on November 23, 1990 in Nanjing, entering China's securities market as a regional broker-dealer.
• Listed on the Shanghai Stock Exchange in 2007 under ticker 601990, increasing capital access and public profile.
• By 2014 expanded services to include futures brokerage, margin trading, and comprehensive investment banking, diversifying revenue sources.
• Launched a proprietary trading division in 2018 to capture short- to medium-term market opportunities and enhance trading profits.
• Reported revenue of CNY 2.27 billion in 2020, a 3.82% increase year-over-year, signaling steady growth amid market headwinds.
• Achieved net profit of CNY 999.3 million in 2024, up 48% from the prior year, reflecting improved margins and higher trading and advisory income.

• Share structure: publicly traded A-shares on SSE (601990.SS); mix of institutional investors, retail shareholders, and state-affiliated stakeholders.
• Major shareholder categories (illustrative split): state-affiliated/municipal investors ~30-40%, domestic institutional investors ~25-35%, retail and others ~25-40%.
• Board and management: typical China securities governance with independent directors, audit and risk committees, and senior management overseeing trading, wealth management, and investment banking units.

• Mission: provide professional capital market services that support corporate financing, market liquidity and investor needs while managing risk prudently.
• Vision: be a leading regional full-service securities firm with national capabilities across brokerage, asset management, and investment banking.
• Core values: integrity, client-centricity, risk discipline, innovation, and market responsiveness.

• Client segments: individual retail investors, institutional investors, corporates, and high-net-worth clients.
• Primary business lines:
  • Brokerage: commissions and fees from equity, bond and futures trading.
  • Investment banking: underwriting fees, advisory fees (M&A, IPOs, bond issuances).
  • Proprietary trading: trading profits and market-making spreads (division added in 2018).
  • Wealth and asset management: management fees for discretionary and advisory portfolios.
  • Margin financing and securities lending: interest income and financing fees.
• Support functions: research, risk management, compliance, and IT/trading systems that enable order execution, risk controls and product distribution.

• 2020 revenue: CNY 2.27 billion (up 3.82% vs. 2019), indicating modest top-line growth during that period.
• 2024 net profit: CNY 999.3 million (up 48% vs. prior year), reflecting margin expansion from higher trading profits, improved investment banking fees, and operational efficiencies.
• Profitability drivers: increased proprietary trading gains since 2018, expanded fee-based services (margin, futures, wealth management since 2014), and scalable back-office systems.

• Market risk: income sensitive to overall market turnover, volatility and capital-raising cycles.
• Credit and counterparty risk: margin financing and securities lending expose the firm to borrower default risk.
• Regulatory risk: China securities regulations, capital adequacy, and conduct rules can materially affect permissible activities and capital deployment.
• Operational risk: trading systems, compliance and risk management capacity are critical as proprietary and margin activities scale.

Nanjing Securities Co., Ltd. (601990.SS): History

• Founded and focused on serving institutional and retail clients across equity, fixed income and wealth-management channels.
• Expanded into investment banking and asset management to capture fee-based revenue streams and reduce reliance on trading income.
• Maintains a strong regional presence while participating in national capital markets initiatives.

• Shares outstanding (Jul 2025): 3.69 billion
• Market capitalization (Jul 2025): CNY 29.75 billion
• Insider ownership: 54.22% - indicates heavy internal control and alignment with management
• Institutional ownership: 9.07% - reflects professional investor interest
• Public/free float: 36.71% - provides trading liquidity and retail/institutional access

• Brokerage commissions: retail and institutional equity and fixed-income trading fees.
• Proprietary and market-making trading: revenue from trading positions, arbitrage and liquidity provision.
• Investment banking fees: underwriting, advisory, M&A and IPO services for corporate clients.
• Asset management and wealth products: management fees and performance fees from discretionary and pooled funds.
• Margin financing and securities lending: interest income and financing spreads from margin loans to clients.

Nanjing Securities Co., Ltd. (601990.SS): Ownership Structure

Nanjing Securities Co., Ltd. (601990.SS) is a full-service securities firm offering brokerage, investment banking, asset management, proprietary trading and wealth management. The firm emphasizes internet finance and financial derivatives, strong regulatory compliance, customer-centric solutions and ESG integration.

• Mission: Deliver comprehensive securities finance and related services with innovation, integrity and client focus.
• Core values: Integrity, compliance, customer-centricity, innovation, sustainability and continuous improvement.
• Strategic focus: Internet finance platforms, derivatives products, digital client interfaces and ESG-aligned asset management.

How it works and makes money:

• Brokerage: Commissions and fees from retail and institutional trading on equities, bonds, funds and derivatives.
• Investment banking: Underwriting, M&A advisory, and IPO services generating advisory and underwriting fees.
• Asset management: Management fees and performance fees from mutual funds, private funds and discretionary accounts.
• Proprietary trading and market-making: Trading profits and spread income across equities, fixed income and derivatives.
• Wealth management and fintech services: Fee income from advisory, online platforms and structured products.

Governance, sustainability and culture:

• Compliance: Strong emphasis on regulatory adherence and internal controls to maintain market credibility.
• ESG integration: Investment processes and product design incorporate environmental, social and governance criteria.
• Talent and technology: Ongoing investment in employee development and digital infrastructure to enhance client service and operational efficiency.

For a deeper ownership and investor breakdown, see: Exploring Nanjing Securities Co., Ltd. Investor Profile: Who's Buying and Why?

Nanjing Securities Co., Ltd. (601990.SS): Mission and Values

• Brokerage services: Nanjing Securities provides cash securities trading, futures brokerage, margin trading, stock repo (repurchase agreements) and related client-clearing services, generating commission and transaction-fee income.
• Investment banking: The firm underwrites equity and bond issuances, conducts M&A and restructuring advisory, and structures financings for corporates and local governments, earning underwriting fees, advisory fees and placement commissions.
• Asset management: Product lines include collective asset management (public funds), directional and special-asset management products, and private equity fund management, producing management fees and performance fees.
• Proprietary & trading: Principal trading and market-making activities contribute trading income from inventory positions, derivatives and fixed-income portfolios.
• Research & advisory: A dedicated macro and sector research team supports client-facing sales, investment banking origination and in-house portfolio decisions, enhancing fee-based advisory services.
• Technology & operations: The company invests in trading systems, risk management platforms, and digital client interfaces to reduce execution costs, improve compliance and expand retail/wholesale distribution.

• Securities agency trading: multi-asset trading access for institutional and retail clients across A-shares, bonds and ETFs.
• Futures brokerage: client access to commodity and financial futures with margin and clearing services.
• Margin financing & securities lending: margin loans and stock-lending facilities to boost client leverage and liquidity.
• Repurchase agreements: short-term funding and liquidity management for clients and proprietary desks.
• Bond issuance & equity financing: underwriting and syndication services for corporates, SOEs and municipal financings.
• Private equity & special asset management: tailored funds for high-net-worth and institutional investors seeking alternative exposures.

• Brokerage commissions and trading-related income typically account for 35-45% of operating income in a normal market year, driven by client turnover and product mix.
• Investment banking fees (underwriting and advisory) fluctuate with capital markets activity; in 2023 they contributed roughly 20-25% of fees amid active bond issuance and selective equity deals.
• Asset management fees and performance fees contribute 15-25% depending on AUM growth and product performance.
• Proprietary trading and market-making deliver residual trading income; volatility spikes can materially affect this component.

• Trading platforms: low-latency order routing and multi-venue connectivity for A-share and bond markets, with mobile/online interfaces for retail clients.
• Risk systems: real-time position monitoring, margin analytics and counterparty exposure controls to comply with regulatory capital and client-protection rules.
• Data & analytics: quantitative toolsets, algorithmic trading modules and client-analytics dashboards to optimize execution and product distribution.
• Research team: macro, fixed income, equity and sector analysts produce regular reports used by sales, institutional clients and internal portfolio managers.

• Commissions & fees: recurring commissions from trading, underwriting fees from capital markets activity, and management/performance fees from AUM.
• Interest & financing: net interest margin from margin lending, repo financing and treasury operations.
• Trading profits: proprietary and inventory trading across equities, fixed income and derivatives.
• Advisory fees: one-off M&A and restructuring advisory mandates with high margin potential.
• Economies of scale: incremental technology investments and expanded distribution can lower unit costs and improve cross-selling, increasing profitability per client.

Nanjing Securities Co., Ltd. (601990.SS): How It Works

• Core client-facing services: brokerage, margin financing, wealth management and financial advisory to retail and institutional clients across equities, bonds, funds and futures.
• Capital markets/intermediary services: underwriting, M&A advisory, placement and private placements for corporates and state-owned enterprises.
• Asset management: public and private funds, discretionary mandates, and structured product distribution.
• Proprietary and principal trading: market-making, directional trading and structured product inventory management.

• Brokerage commissions and transaction fees - collected on securities and futures trades executed on behalf of clients; a high-frequency source tied to market turnover and client activity levels.
• Investment banking fees - earned from underwriting (IPO, bond issuance), financial advisory and placement services; fees are event-driven and often concentrated in quarters with deal flow.
• Asset management fees - management fees (AUM-based), performance fees on outperformance, and profit shares for private funds; recurring revenue that scales with AUM growth.
• Proprietary trading profits - realized and unrealized gains (and losses) from the firm deploying its own capital across equities, bonds, derivatives and repo books.
• Margin trading and repo interest - interest spread earned when providing leverage and securities financing to clients; also drives prime-brokerage flows.
• Financial advisory and consulting fees - M&A, restructuring and strategic advisory for corporates and local governments, typically billed on a success or retainer basis.

• Reported operating income (latest fiscal year): approximately RMB 7-8 billion (reflecting commissions, fees, trading gains and interest income combined).
• Net profit attributable to shareholders (latest fiscal year): approximately RMB 1.5-2.0 billion, influenced by market cycles and trading performance.
• Assets under management (AUM) across funds and discretionary mandates: in the order of RMB 100-300 billion, driven by mutual funds, private funds and institutional mandates.
• Balance-sheet lending and margin exposure: typical margin loan book in the tens of billions RMB, with repo and securities financing adding additional scale to liabilities.

• Market turnover and volatility - boosts brokerage commissions and trading profits in active periods.
• Capital markets issuance cycles - a primary determinant of investment banking fees in any given year.
• Interest-rate environment - influences margin financing spreads, repo rates and valuation of trading books.
• Regulatory changes - rules on margin, proprietary trading, asset management product structures and capital requirements can materially shift revenue composition.
• Distribution reach and digital channels - scale retail/customer acquisition costs and recurring wealth-management fee income.

• Proprietary trading and principal investments are high-return but volatile and capital-intensive.
• Investment banking is high-margin but lumpy and deal-dependent.
• Asset management produces steady, scalable fees but requires retention of client mandates and consistent performance.
• Margin financing expands interest income but raises credit and market risk in downturns.

Nanjing Securities Co., Ltd. (601990.SS): How It Makes Money

• Core business lines: brokerage, investment banking (ECM/DCM/M&A advisory), asset management, proprietary trading and market-making, wealth management, and financial derivatives.
• Competitive advantages: deep client relationships in Eastern China, customized local corporate coverage, and investment in digital platforms to serve retail and institutional clients.
• Strategic focus: expand internet finance services, scale derivatives and structured products, and broaden AUM via fund distribution and discretionary mandates.

• Brokerage commissions: fees from retail and institutional trading - stable base tied to regional market share and online trading growth.
• Investment banking fees: underwriting and advisory income from IPOs, bond issuance and M&A - cyclical but high-margin.
• Asset management fees: recurring management and performance fees from mutual funds, private funds and discretionary mandates.
• Proprietary trading and market-making: trading gains and spreads in equities, bonds and derivatives - provides opportunistic upside.
• Internet finance & digital services: subscription, platform fees, margin financing and fintech-driven product distribution.

• Regional strength: dominant presence in Jiangsu with extensive branch and client network-critical for fee generation and retail deposits.
• Diversification: multiple revenue streams reduce volatility exposure; IB and asset management help during low trading volumes.
• Digital transition: investments in trading infrastructure, mobile platforms and derivatives desks position the firm to capture fintech-driven growth.
• Growth initiatives: expanding into new provincial markets, scaling institutional sales, and enhancing employee training to improve service quality and compliance.