GF Securities: A Success Story of an Ordinary Unprivileged Business

Hard-Earned Success

Unlike the government-owned Wanguo Securities and the military-backed Jun'an Securities, GF Securities can trace its history back to the Securities Department the Guangdong Development Bank created on September 8, 1991. Back then, there were only six employees and CNY 10 million in capital.

Over the past 20 years, GF Securities has continued growing by its own efforts and through several market-based mergers and acquisitions. Its revenue has increased from CNY 4 million to 10.219 billion. Its business offices have increased in number from 1 to 199. The 6 employees have increased to 11,000, providing services to more than 3.5 million customers. Its main business activities have expanded from single-line securities brokerage to a full range of securities-related activities that cover stocks, bonds and debentures, funds, futures, and equity investment. The company now consists of wholly owned GF Futures, GF Hong Kong, and GF Xinde, and partially owned GF Fund and E-Fund management companies. It has the business structure of an emerging financial holding conglomerate involved in business activities in securities, funds, futures, and equity investments. According to its consolidated financial statements as of December 31,2010, GF Securities has total assets of CNY 95.947 billion, which have been increased by 181 times, for an average growth of 136 percent per annum in the past 17 years for which statistical data are available. Its net assets are CNY 19.401 billion, which have increased 692 times, for an average growth of 147 percent per annum in the past 17 years. Its revenue is CNY 10.219 billion, which has increased 309 times, for an average growth of 140 percent per annum in the past 17 years. Its net profits are CNY 4.027 billion, which have increased 237 times, for an average growth of 138 percent per annum in the past 17 years. The company has improved its market share (in terms of stock trading amount) from 3.1 percent in 1999 to 4.18 percent at the end of 2010, ranking fourth in the market.

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