Regulators reveal new data on brokerage research business, public fund commission reduced by 20%, while analysts increased by 20%.

Although it is already the second half of 2025, the latest disclosure from the China Securities Association on the securities research business in 2024 provides a comprehensive review of the research business from an official statistical perspective and still has reference value. Firstly, it answers the trend of how the "cake" is divided under the fee reduction; secondly, it provides detailed information on industry personnel changes, such as analysts; and thirdly, it presents the latest development trends in research business, including some details in the industry that are rarely focused on. After the detailed analysis by reporters from Caixin Media, the China Securities Association's analysis core findings presented four conclusions. Mutual fund fee reductions dominate, institutional commission income under pressure. In 2024, overall institutional client commission income related to securities research reports decreased, with institutional client commission income totaling 19.865 billion yuan by the end of 2024, a decrease of 22.48% from 24.868 billion yuan at the end of 2023. Among them, commission income from mutual fund companies decreased by 5.003 billion yuan, a decrease of 20.12%, mainly due to the advancement of mutual fund fee reduction reforms. In 2023, the average commission rate for mutual funds was 7.37, which decreased to 5.19 in 2024; coupled with a nearly 10% decrease in fund stock trading volume in 2024 compared to 2023, these two factors led to a reduction in mutual fund commission income. Industry concentration is increasing, with a clear head effect. Competition in the securities research business intensified in 2024, and the industry concentration showed an increasing trend in terms of personnel and income: in terms of personnel, the top 30 securities firms accounted for 70.08% of all analysts in the industry, indicating that top securities firms have enhanced their ability to attract analysts; in terms of income, the top 10 securities firms accounted for 47.38% of mutual fund commission income clearing, indicating that fund companies tend to concentrate commission resources to acquire high-quality research report services, accelerating the industry's shift towards concentration at the top. Cross-border research is accelerating, with integrated layout being promoted. With the increasing linkage of domestic and foreign capital markets and the enhanced influence of global technology enterprise industrial chains, securities firms are continuously increasing research coverage of Hong Kong stocks, US stocks, and other regional market stocks. Although the number of domestic research reports in the industry decreased by 5% in 2024, the number of securities firms publishing research reports on overseas-listed companies (60, an increase of 2 from the previous year) and their total research reports (14,732, an increase of 5.37% from the previous year) both showed growth; large securities firms are accelerating the integration of research on A-shares, Hong Kong stocks, and US stocks internally, improving cross-border market research efficiency by coordinating domestic teams for foreign research. Securities firms are increasing their forward-looking and strategic research layout. In 2024, 11 securities firms established industry research institutes, aiming to build industry development think tanks by relying on research institutes, technical experts, industry experts, etc. Furthermore, securities firms are actively supporting national ministries and local governments through research, and bolstering teams in industrial research, policy research, and other specialized areas to enhance forward-looking research in areas such as regional coordination, city group development, new quality production forces, and artificial intelligence. To examine various data details one by one. Focus 1: Buy-side "cake" income reduced by 5 billion yuan The most focused area is how much money the research business made in 2024 and how the cake was divided? The answer is a decrease. By the end of 2024, institutional client commission income amounted to 19.865 billion yuan, a 22.48% drop from 24.868 billion yuan in 2023. Among them, commission income from mutual fund companies decreased by 5.003 billion yuan, a decrease of 20.12%. The significant reduction in commission income is mainly due to the advancement of mutual fund fee reduction reforms. In addition, the average commission rate for mutual funds decreased from 7.37 in 2023 to 5.19 in 2024, and the trading volume of fund stocks in 2024 decreased by nearly 10% compared to 2023. In terms of commission income, there was a significant differentiation, with commission income from mutual fund clients (including fund separate accounts) decreasing by 31.67% year-on-year. The combined commission income of the top 10 securities firms accounted for 47.38% of the total industry, indicating an increase in industry concentration compared to 2023. Commission income from non-mutual fund clients (insurance companies, insurance asset management, QFII/RQFII, private equity funds, etc.) increased slightly by 6% over 2023, with the increase mainly coming from the continued growth of investment volumes by non-mutual fund institutions. It is also important to note that the number of service organizations providing research reports to institutional clients remained stable in 2024. The customer base showed the characteristics of "mutual fund growth, insurance stability, QFII/RQFII decline": 92 securities firms providing research report services to mutual fund companies (an increase of 2 from the end of 2023), 59 firms serving insurance companies and insurance asset management companies (unchanged from the end of 2023), and 37 firms serving QFII and RQFII institutions (a decrease of 1 from the end of 2023). Focus 2: Analysts expand against the trend, with a 21% increase in new hires Personnel changes have always been a concern for the research line in the industry. Overall, there was a slight decrease in total personnel, an expansion of analysts against the trend, an increase in turnover rate, and a shrinking recruitment scale. By the end of 2024, 102 securities firms set up independent research departments (including research subsidiaries), with a total of 9,619 research department personnel, a decrease of 1.05% from the end of 2023. There was significant variation in the distribution of personnel in the department, ranging from a maximum of 423 people to a minimum of just 3 people, with a median of 51 people. There were 5,628 analysts, a 20.69% increase in analysts compared to the overall decrease in securities industry personnel. They accounted for 58.51% of the total research department personnel. The number of analysts in each securities firm ranged from 0 to 294, with a median of 32 people. The total number of analysts from the top 30 securities firms accounted for 70.08% of all analysts in the industry, a slight decrease from the end of 2023. Positions related to risk control also saw an increase in personnel, with 314 personnel for research report quality audit, an 8.65% increase, and 271 personnel for compliance review, an increase of 11.07%, indicating an enhanced focus on the compliance and quality control of research reports. Based on Caixin Media's observation in recent years, the standards for compliance and quality audits of securities research reports have been continuously improving, especially with the ongoing growth in the number of personnel involved in industry and research report quality audits and compliance reviews. This reflects an increase in industry institutions' awareness of compliance and an enhancement of compliance management levels. Additionally, 42 securities firms appointed chief economists, with the majority responsible for daily management in research departments, while a few were under direct management by the securities firms. Leading securities firms still have an advantage in terms of reserves of leading research talent. Research sales showed an "explosive growth." By the end of 2024, out of 102 securities firms, a total of 2,172 research salespersons involved in research-related businesses had been added, a significant increase of 221% from the end of 2023. The number of research salespersons in each securities firm ranged from 1 to 174, with 28 firms setting up primary research sales departments and 31 setting up secondary research sales departments, further improving the research sales system. Focus 3: Increase in turnover rate, reduction in recruitment scale The turnover rate of analysts in securities firms in 2024 remained high, with a focus on personnel with a decline in job tenure. In terms of job tenure distribution within the company, there were 2,223 analysts (39.50%) with more than 3 years of experience, 2,148 analysts (38.17%) with 1-3 years of experience, and 1,257 analysts (22.33%) with less than 1 year of experience, indicating that nearly 60% of analysts had less than 3 years of work experience. The personnel turnover data further confirms this trend. In 2024, a total of 988 analysts left various securities firms, a 29.66% increase from 2023, while the number of new recruits for research department personnel decreased by 29.01% to 1,786 hires during the same period. Under the trends of industry reform on the supply side and downsizing due to salary reduction and layoffs, analysts from small and medium-sized securities firms are moving to larger firms at an accelerated pace. At the same time, major securities firms are reducing the scale of their research department personnel, leading to a pattern of "high turnover rate, reduced new hiring scale." Focus 4: Reduction in overseas personnel, differentiation in domestic and overseas research report releases Regarding overseas expansion, 33 securities firms established subsidiaries overseas, an increase of 2 from the end of 2023, but the scale of overseas research personnel shrank - 20 overseas subsidiaries had independent research departments with a total of 481 persons, a reduction of 25 people from the end of 2023. This change is a result of securities firms consolidating their overseas business: reducing non-key local positions while promoting integrated research on A-shares, Hong Kong stocks, and US stocks primarily led by domestic research teams, shifting the focus of overseas research business towards a "domestically coordinated" model. In terms of research reports on domestically listed companies, 83 securities firms released a total of 96,156 reports on domestically listed companies in 2024, a decrease of 5% from 2023, but still with a relatively comprehensive coverage. In terms of the distribution of research report numbers, there were 2 securities firms with over 5,000 reports, 5 firms with 3,000-4,000 reports, 11 firms with 2,000-3,000 reports, 18 firms with 1,000-2,000 reports, 33 firms with 100-1,000 reports, and 14 firms with 1-100 reports; in terms of the number of domestically listed companies covered, 5 firms covered 1,000-2,000 companies, 27 firms covered 500-1,000 companies, 30 firms covered 100-500 companies, and 20 firms covered less than 100 companies. In terms of industry coverage, the firm covering the most industries covered 76 industries, while the one covering the least covered only 1 industry. Among them, 9 firms covering over 60 industries, 21 covering 20-60 industries, 35 covering 10-20 industries, and 22 covering less than 10 industries. The output scale of reports on the Beijing Stock Exchange and the New Third Board was relatively limited, with 45 securities firms releasing 1,166 reports on companies listed on the Beijing Stock Exchange and 5 firms releasing 18 reports on companies listed on the New Third Board. This indicates that the attention given to research on companies in the innovation layer and basic layer is still in need of improvement. Reports on overseas listed companies showed a "concurrent increase in quantity and quality" trend, with 60 securities firms issuing 14,732 reports on Hong Kong and other overseas listed companies in 2024, an increase of 5.37% from 2023, with an increase of 2 firms from 2023. In terms of the number of overseas listed companies covered, 1 firm covered over 500 companies, 15 firms covered 100-500 companies, 34 firms covered 10-50 companies, 10 firms covered less than 10 companies, demonstrating the significant advantage of leading securities firms in overseas research coverage. Macro and strategic research reports serving as the core output of "think tank" type production, with a total of 29,441 reports released by 93 securities firms in 2024, including 4 firms releasing over 1,000 reports, 14 firms releasing 500-1,000 reports, 50 firms releasing 100-500 reports, and 25 firms releasing less than 100 reports, serving as an important vehicle for guiding market expectations and macro decision-making. Focus 5: Focusing on the "Five Major Articles" and playing the role of a think tank In 2024, securities firms actively aligned their research reports with national strategies, conducting multi-field research around the "Five Major Articles": - Financial Technology: Over 30 securities firms focused on serving new quality production forces, updating the valuation system for science and technology innovation companies, and some firms developed a diverse science and technology innovation index to provide reference for the valuation of science and technology innovation companies. - Green Finance: Many securities firms established ESG industry research teams, released a series of green finance research reports and whitepapers. For example, Shenwan Hongyuan Group collaborated with research and wealth management forums of 50 people to compile the book "Doing the 'Five Major Articles' in Finance", promoting the conversion of research results in green finance. - Pension Finance: Over 20 securities firms conducted research on pension-related institutions and products, tracking the scale, returns, and product design of individual pension products regularly, to provide data support for the development of the pension finance market. - Inclusive Finance: Securities firms such as Shenwan Hongyuan Group established specialized inclusive finance research teams, with institutions like the CICC Research Institute participating in research on rural revitalization and producing research reports, providing decision-making references for the development of county-level economies. - Digital Finance: Several securities firms strengthened research on the development path of the digital industry, forming industry chain research groups, enhancing the valuation pricing capability of digital elements, and promoting the integration of digital economy with the real economy. At the national level, securities firms such as CITIC SEC, CICC, and Shenwan Hongyuan Group actively provided information and submissions to the CPC Central Committee and the State Council, offering high-quality research decision-making support on economic reforms and major issues in the capital market. Numerous proposed drafts have been adopted and commented on. At the regional level, some regional securities firms deepened their engagement in the local economy, strengthened cooperation with provincial and municipal government departments, and proposed solutions for major policies and key issues in economics, finance, and society through topic research, project consulting, and forum exchanges. For example, Huafu Securities released the "Fujian High-Quality Development Index," published the "Research on the Development of New Quality Production Forces in Fujian Province," and collaborated with relevant units of the Fujian provincial government to complete multiple important tasks, becoming a "think tank" and "thought library" for local government. Focus 6: Specialization, differentiation, and internationalization as future directions In response to the challenges facing the industry such as business model challenges, increasing demands for professionalism and compliance, and homogenization of competition, the China Securities Association proposed development recommendations from three aspects, particularly urging to avoid a "game-like" competition around trading commissions and building a healthy market environment. The China Securities Association recommended that securities firms continuously enhance research report independence and professionalism. They should focus on research in industry chain linkage, creating professional advantages in specific areas; strengthen research on the science and technology innovation, service consumption, urban group development, regional economic vitality, and "Five Major Articles" strategic topics, outputting high-quality research reports to enhance the ability to serve national strategies and strengthen market think tank functions. The China Securities Association also recommended securities firms to transform their research report business in accordance with the new regulations for mutual funds. They should explore a transformation from single reliance on commissions to a diversified income model through consulting service fees, data product fees, and more; find their unique development directions based on their research features, talent reserves, regional advantages, and business focus to establish competitive advantages. The China Securities Association also advised securities firms to adapt to the trend of capital market connectivity. They should conduct global comparative analyses and asset pricing with an international perspective; strengthen research on global macroeconomics, international capital flows, cross-border industrial chain changes to enhance external impact forecasting capabilities; establish a framework for integrated research on A-shares, Hong Kong stocks, and US stocks to enhance China's global asset pricing capabilities, provide high-quality research reports for overseas investors, and support securities firms' international business layouts, facilitating the connection between China and global capital markets. This article is reproduced from Caixin Media; GMTEight editor: Chen Xiaoyi.