ATIC Securities Company is a wholly-owned subsidiary of ATIC. It was established on November 11, 1993. ATIC used the prestige of acquiring GG to go public and applied to the FED, SEASD and CFTC to establish ATIC Securities Company and was approved.
It has a registered capital of US$500 million and 42 employees.
ATIC Securities' business includes corporate finance, stocks, commodity futures, foreign exchange brokerage and asset management.
The first securities sales department located at ATIC's headquarters was officially opened on November 18, 1993.
After two years of development, ATIC Securities has successively established a securities business department in Los Angeles, San Francisco and Chicago. The number of employees has increased to 162, and the registered capital has increased to US$1.5 billion.
Under the leadership of Yu Jianguo and Li Huabin, ATIC Securities achieved a profit of US$19.35 million in 1994. Employees were highly motivated and requested investment to establish three more securities business offices in Philadelphia, Houston and Boston.
Sun Jian promised at that time that if ATIC Securities could achieve a profit of US$30 million in 1995, the company would transform into a joint-stock system, introduce strategic investors, and implement full employee shareholding.
In 1995, there were more than 9,900 banks in the United States, 80% of which were small and medium-sized banks, with total assets of more than 4.4 trillion US dollars; there were more than 10,600 credit unions in the United States, with total assets of more than 1.3 trillion US dollars; and there were more than 2,800 securities companies (dealers) in the United States. and brokers), with a total registered capital of more than 1.2 trillion US dollars. The top five are Merrill Lynch, Searsson Securities, Dean Witter Securities, Pratt & Whitney and Goldman Sachs Group.
In 1995, Merrill Lynch had 247 securities offices in the United States, with total assets of US$227 billion; Goldman Sachs Group had 217 securities offices, with total assets of approximately US$182 billion.
ATIC Securities, with total assets of nearly US$3 billion and four securities business departments, is not ranked among the top 500 U.S. securities companies!
I don’t know, I don’t know, but I’ll be shocked to know that the comprehensive strength of the U.S. banking industry and securities companies is so powerful! If the country opens the door to the financial system and conducts business in accordance with market rules, domestic banks and securities companies that have not yet matured will be eaten up by Wall Street investment banks.
The main purpose of establishing ATIC Securities Company is to invest in Dow Jones stock index futures, Nasdaq stock index futures and U.S. stocks for convenience and safety. The targets and amounts of each investment are well known to the managers of Merrill Lynch Securities Company, as if they are being stabbed!
In addition to labor costs that are about 10 times higher than in China for large-scale land staking, holding real estate in the United States requires paying a property tax of 1-3% every year, renting out a house requires paying a rental tax of 30%, and property transfers also charge 15%. % capital gains tax and 1% to 5% business tax on the transaction price! Unlike in China, if the house you buy is vacant for ten years, the price can double.
Sun Jian has long understood that if ATIC Securities wants to stand out in the U.S. securities industry, it can only take shortcuts and take a new path as an Internet securities company!
Although the high-speed Internet highways in the United States are still under intensive construction, telephones in the United States have long been popular. Telephone and Internet charges are low. The Internet speed has been upgraded to 128K. ISDN is a dual line. You can surf the Internet and make calls at the same time. The stability is also It is better than the telephone. The Internet fee is the same as ordinary dial-up Internet access. You can also use two lines to access the Internet at the same time, and the speed becomes 256k. The securities company provides stock trading systems and stock receiving cards, which can satisfy investors without leaving home. Transaction needs.
Since the management such as Yu Jianguo and Li Huabin are very motivated, Sun Jian, who has a lot of money, will not dampen everyone's enthusiasm.
On November 11, 1995, on the second anniversary of its establishment, ATIC Securities Company publicly announced that it would cooperate with PENG and GPIC to become the world's first interconnected securities company and provide free Kunpeng Securities trading software and Kunpeng stock securities cards. You can also see stock price fluctuations in real time on GPIC. You can invest in stocks at home using computers and phone lines, with a commission rate of 1‰, which has aroused strong response in the industry.
In 1975, the "Securities Law Amendment" was promulgated, and transaction commissions were marketized. Large U.S. securities firms made full use of price discrimination strategies to increase transaction size.
Smaller individual investors charge higher commissions, and institutional investors with larger transaction sizes receive significantly lower commission rates to attract large mutual fund account opening transactions and maximize overall commission income.
Small and medium-sized securities firms have seized on the pain points of individual investors being sensitive to commission prices, quickly occupied the retail brokerage market through low-commission strategies, established trading infrastructure and retail distribution networks, and achieved economies of scale.
Discount brokerages sprung up in the United States.
Today, the commission rate of large American brokerage firms is generally 2‰, and that of discount brokerage firms is 1.5‰.
Yu Jianguo and Li Huabin also lived up to expectations. In 1995, ATIC Securities achieved a profit of US$32.5 million.
ATIC Securities Company carried out shareholding reform on January 18, 1995. After evaluation, ATIC Securities Company's fixed assets and intangible assets were worth US$3.25 billion, which was converted into 1 billion shares at US$3.25 per share.
ATIC holds 600 million shares, accounting for 60% of the shares, and is the largest shareholder.
PENG invested US$487.5 million and holds 150 million shares, accounting for 15% of the shares, making it the second largest shareholder.
GPIC invested US$390 million and held 120 million shares, accounting for 12% of the shares, making it the third largest shareholder.
GCA invested US$357.5 million and held 110 million shares, accounting for 11% of the shares, making it the fourth largest shareholder.
TIC invested US$32.5 million and held 10 million shares, accounting for 1% of the shares, making it the fifth largest shareholder.
ATIC Employee Stock Ownership will invest US$19.5 million and allot 6 million shares at a price of US$3.25, accounting for 0.6% of the shares, making it the sixth largest shareholder.
HTIC Employee Stock Ownership will invest US$13 million and allot 4 million shares at a price of US$3.25, accounting for 0.4% of the shares, making it the seventh largest shareholder.
The 10 million shares held by TIC will be used as incentive shares. ATIC Securities will introduce outstanding talents and reward outstanding employees.
ATIC promised that the allotments given up by ATIC Employee Stock Ownership Association and HTIC Employee Stock Ownership Association would be funded by ATIC.
As listed companies, PENG, GPIC and GCA simultaneously issued announcements on investing in ATIC Securities Co., Ltd. on January 10. When the Dow Jones stock index and the Nasdaq stock index fell by 2% and 1.14% that day, the three listed companies The stock price also increased by 1.25%, 2.13%, and 1.12% respectively, which was recognized by three institutional investors.
The management and ordinary employees of ATIC Employee Stock Ownership Association and HTIC Employee Stock Ownership Association have seen the development prospects of ATIC Securities Company, and no one has given up on the allotment of shares.
Old friends from Citigroup, Wells Fargo, JP Morgan, KKR, Goldman Sachs Group, Morgan Stanley, Bank of America, DaiorateI, AbuDhabiIhority and other companies were optimistic about the concept of the world's first Internet brokerage, and they came to visit or called Sun Jian one after another. When asked to invest in ATIC Securities Company, he replied with a smile that when ATIC Securities Company's securities business departments reach 30, he will personally invite everyone to invest in shares.
The Internet bubble has not yet arrived. Fruit trees can only be sold at a good price when they grow up. Sun Jian, a second-generation man, will not let these big capitalists buy shares cheaply.
ATIC received US$1.3 billion in funding, and Yu Jianguo and Li Huabin let go of their hands to compete for land.
