Cnps Securities 2024 Leverage Risk Control Analysis

I have now obtained relevant data on Cnps Securities and risk control in the securities industry. Let me conduct a detailed analysis for you.

According to the 2025 Annual Tracking Rating Report of China Post Group Corporation Limited, the financial data of Cnps Securities as of the end of 2024 is as follows [1]:

Indicator	Value	YoY Change
Total Assets	RMB 25.269 billion	+19.5%
Net Assets	RMB 8.031 billion	Significantly improved
Operating Revenue	RMB 1.033 billion	Steady growth
Net Profit	RMB 107 million	Stable profitability
Annual Capital Injection	RMB 459 million	Enhanced capital strength

The

and you mentioned are compared with industry data as follows:

Comparison Dimension	Cnps Securities	Industry Average (2024)
Asset-Liability Ratio	54.48%	74.23%
Financial Leverage Multiple	Approximately 2.1x	Approximately 3.0x
Proportion of Short-Term Borrowings	6.63%	Volatile across the industry

Cnps Securities’ asset-liability ratio is

, reflecting a relatively prudent financial strategy [2].

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• In 2024, Cnps Securities received a capital injection of RMB 459 million from its parent company, with net assets reaching RMB 8.031 billion, significantly enhancing its net capital strength
• In 2023, the financial leverage multiple decreased from 2.69 at the beginning of the year to 2.51, with the leverage level continuously optimized [3]

• According to Cnps Securities’ 2023 Annual Report, the company adheres to the principles of “safety, liquidity, and profitability” in liquidity management
• Sets scale limits and risk limits for capital-intensive businesses such as proprietary trading, asset management, and margin trading
• Conducts monthly stress tests to ensure real-time compliance with liquidity regulatory indicators [3]

• Short-term financing channels: interbank lending, bond repurchase, short-term financing bills, margin financing, etc.
• Long-term financing channels: capital increase and share expansion, corporate bonds, subordinated debt, etc.
• Has established stable credit relationships with financial institutions, ensuring smooth financing channels [3]

Risk Factor	Risk Level	Description
Debt Maturity Structure	Medium	The proportion of short-term debt needs continuous monitoring
Market Risk Exposure	Medium	The scale of proprietary trading business needs to match capital
Liquidity Risk	Low	Liquidity management measures are sound
Credit Risk	Low	Asset quality is high, and impairment provisions are sufficient

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According to the Measures for the Administration of Risk Control Indicators of Securities Companies, securities companies must continuously meet the following core indicators [4]:

Regulatory Indicator	Regulatory Standard	Cnps Securities’ Performance
Risk Coverage Ratio	≥100%	Expected to meet the standard
Capital Leverage Ratio	≥8%	Expected to meet the standard
Liquidity Coverage Ratio	≥100%	Expected to meet the standard
Net Stable Funding Ratio	≥100%	Expected to meet the standard
Net Capital/Net Assets	≥20%	Expected to meet the standard
Net Capital/Liabilities	≥8%	Better than the standard

• Implements dynamic management of the scale and structure of assets and liabilities
• Focuses on matching the scale, structure, and maturity of fund sources and applications
• Sets scale limits and risk limits for capital-intensive businesses [3]

• Implements real-time dynamic monitoring of net capital and risk control indicators
• Conducts regular stress tests to ensure controllable risks
• Conducts risk indicator assessments before major businesses and profit distribution [4]

• Financial asset allocation is mainly based on highly liquid assets
• Other debt investments account for 39.63%, and trading financial assets account for 24.79%
• Monetary funds account for 14.80%, with good asset liquidity [3]

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In view of the indicator that short-term borrowings account for 6.63% of assets you mentioned, it is recommended to focus on the following:

Recommended Measures	Details
Maturity Structure Optimization	Moderately increase the proportion of medium- and long-term financing to reduce maturity mismatch risk
Liquidity Reserve	Maintain sufficient monetary funds to ensure short-term solvency
Credit Line Maintenance	Maintain good cooperative relationships with financial institutions to ensure smooth financing channels

• Fully utilize the capital support from the parent company (China Post Group)
• Consider introducing strategic investors at an appropriate time to enhance capital strength
• Focus on profit retention and capitalization of retained earnings [1]

• The scale of proprietary trading business should maintain a reasonable ratio with net capital
• Strictly control the leverage multiple for credit businesses (margin trading and securities lending)
• Avoid high-leverage products in asset management business [4]

• Continue to improve the stress test mechanism
• Establish a risk early warning indicator system
• Take timely control measures for abnormal indicators

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Cnps Securities’ current leverage risk is generally

:

1. The asset-liability ratio of 54.48% is
   about 20 percentage points lower than the industry average
   , with relatively prudent financial policies
2. The
   proportion of short-term borrowings of 6.63%
   is within a reasonable range, and with the RMB 459 million capital injection received in 2024, short-term solvency is guaranteed
3. The company has established a relatively sound risk control system, and all regulatory indicators are expected to meet the standards
4. As a securities subsidiary absolutely controlled by China Post Group, it has strong shareholder background support

: Although the current risk is controllable, continuous attention should be paid to the following:

• The impact of market fluctuations on proprietary trading business
• Risk exposure brought by the growth of credit business scale
• Real-time changes in liquidity management indicators

It is recommended that Cnps Securities continue to adhere to prudent financial policies, and while supporting business development, ensure that risk control indicators always meet regulatory requirements and maintain an appropriate safety margin.

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[1] 2025 Annual Tracking Rating Report of China Post Group Corporation Limited (http://qxb-pdf-osscache.qixin.com/AnBaseinfo/8302ecd0d947a9ead8cdc5f3eb828312.pdf)

[2] Deloitte China Securities Industry 2024 Review and 2025 Outlook (https://www.deloitte.com/cn/zh/Industries/financial-services/perspectives/chinese-securities-sector-2024-review-and-2025-outlook.html)

[3] 2023 Annual Report of Cnps Securities Co., Ltd. (https://cnpsec.com/plat_files/upload/png_upload/20241212/202412121733997661349.pdf)

[4] Measures for the Administration of Risk Control Indicators of Securities Companies (http://www.csrc.gov.cn/csrc/c106256/c1653957/content.shtml)