Over 80% of securities firms were profitable last year. Proprietary trading has been the main revenue source in the industry for three consecutive years.

Securities Times reporter Liu Yiwen

Securities Times reporter learned that the China Securities Industry Association (hereinafter referred to as the “CSIA”) has recently issued the “Analysis of the 2025 Operating Conditions of Securities Firms” (hereinafter referred to as the “Analysis”) to the industry.

According to the data disclosed in the Analysis, as of the end of 2025, the cumulative transaction amount under the securities swap facility totaled RMB 105 billion, bringing incremental capital to the A-share market, and enhancing the intrinsic stability of the capital market. In addition, overseas institutions and individuals held domestic stocks of nearly RMB 3.7 trillion, maintaining an upward trend, with the appeal of Chinese assets continuing to improve.

More than 80% of securities firms are profitable

The Analysis shows that in 2025, the securities industry’s direct financing services for the real economy exceeded RMB 8 trillion. As of the end of 2025, the total assets, net assets, and net capital of securities firms nationwide were RMB 1.483 trillion, RMB 334 billion, and RMB 244 billion, respectively; they increased year over year by 14.66%, 6.53%, and 5.27%, respectively. The industry’s capital strength continued to increase, and overall risk control indicators were better than regulatory and early-warning standards. The whole industry recorded operating revenue and net profit of RMB 541.171 billion and RMB 219.439 billion, respectively; they increased year over year by 19.95% and 31.20%, respectively, showing steady improvement in operating quality and efficiency. Of them, 128 securities firms recorded profits, with a profitability coverage rate of 85.3%. The industry’s average return on net assets (ROE) was 6.79%, up 1.29 percentage points year over year.

In terms of revenue growth rates, the brokerage business saw the largest increase. In 2025, the net income from brokerage business for the entire industry was RMB 182.284 billion, up 42.50% year over year, mainly benefiting from the rebound and improved outlook of the A-share market, as well as a significant increase in trading activity.

In terms of revenue structure, proprietary trading has ranked as the industry’s largest source of revenue for three consecutive years. In 2025, the proprietary trading revenue of the entire industry was RMB 185.324 billion, accounting for 34.24%. Among them, the scale of stock investments grew 36.47% year over year, and its share in the total proprietary investment scale increased by 2.28 percentage points year over year. Brokerage business, net interest income, investment banking business, and asset management business contributed 33.68%, 11.95%, 7.38%, and 4.41% of operating revenue, respectively, forming an industry income pattern of “diverse support and balanced structure.”

Average net commission rate drops to 2‱

The Analysis states that securities firms actively carry out operations under the securities swap facility, increase their countercyclical deployment, and stabilize and stimulate the market through practical actions, boosting investors’ confidence and helping the long-term healthy development of the capital market. As of the end of 2025, the cumulative transaction amount under the securities swap facility totaled RMB 105 billion, bringing incremental capital to the A-share market and enhancing the intrinsic stability of the capital market.

In recent years, securities firms have continued to implement the “reduce fees and commissions” policy. While lowering the cost for investors to participate, they have also increased service depth. As of the end of 2025, the securities industry provided custodial services for RMB 10.558 trillion in assets. The industry’s average net commission rate for the agency securities trading business for the full year fell to two per ten-thousand, and the results of fee reduction and benefits-sharing have been highlighted. Meanwhile, listed securities firms actively return value to investors, and multiple dividend payments within a year have become the norm. In 2025, cash dividends and share repurchases continued for the second consecutive year to exceed RMB 50 billion, enhancing investors’ sense of gain and helping guide investment philosophies to shift toward long-term value investing, accelerating the formation of a market ecosystem where financing and investment are more coordinated.

In recent years, tools for allocating large categories of assets have become increasingly diversified. As of the end of 2025, there were 1,381 ETFs listed and traded on domestic exchanges, with a size of RMB 6 trillion, reaching a historical high. The securities industry’s distribution of financial products under custody had a balance of RMB 4.69 trillion, up 35.30% year over year. Fund investment advisory services have shifted from scale expansion to quality improvement. Some companies have achieved breakthroughs in core indicators such as contracted sales scale, number of customers, and reinvestment rate, and investors’ trust in investment advisory services continues to rise.

As of the end of 2025, the total net value of assets under management on behalf of securities firms was RMB 10.21 trillion, up 5.49% year over year. Among them, collective asset management and special asset management contributed larger increments, growing 13.48% and 14.49%, respectively. From the business structure perspective, the share of scale in collective asset management (33.72%) first exceeded the share of scale in single asset management business (32.84%).

Service capability for Sci-Tech innovation keeps strengthening

The CSIA said that in 2025 the securities industry continued to enhance its ability to serve scientific and technological innovation. Relying on a multi-level capital market and comprehensively using financial instruments such as stocks, bonds, and merger and acquisition restructuring, it provided precise support to Sci-Tech innovation enterprises, injecting strong momentum into cultivating new quality productive forces and consolidating and strengthening the foundation of the real economy.

In 2025, the securities industry served 116 companies to complete IPO listings, achieving financing of RMB 131.771 billion. Of these, 78 companies listed on the Sci-Tech Innovation Board, the ChiNext Board, and the Beijing Stock Exchange, with financing of RMB 70.898 billion. At the same time, securities firms continued to optimize their layout for alternative investments business, increasing long-term capital support for growth-stage Sci-Tech innovation enterprises and small and medium-sized enterprises. In 2025, securities firms or their alternative investment subsidiaries participated as follow-investors in IPOs such as those on the Sci-Tech Innovation Board and the Beijing Stock Exchange, exceeding RMB 1.2 billion; their cumulative follow-investment in IPOs of Sci-Tech innovation companies exceeded RMB 370 billion.

In 2025, securities firms themselves issued 79 Sci-Tech Innovation bonds as issuers, raising RMB 834.40 billion. From bond issuance and capital investment to bond market making, they strengthened all-round support for Sci-Tech innovation enterprises. In 2025, securities firms underwrote 998 technology innovation bonds in total, with an aggregate amount of RMB 1.02 trillion, up 66.52% year over year, injecting sustained momentum into fostering and developing new quality productive forces.

As independent financial advisers, securities firms fully leverage their professional strengths. During the year, they served 82 listed companies to complete major asset reorganizations, with transaction amounts exceeding RMB 600 billion. By deeply participating in major transactions such as industrial chain integration and cross-regional/cross-border merger and acquisition reorganizations, they helped listed companies achieve expanded and leapfrogging development, providing financial support for building industrial clusters with international influence.

The appeal of Chinese assets keeps strengthening

The Analysis also mentioned that as of the end of 2025, 34 mainland securities firms had established 36 overseas subsidiaries. Total assets of overseas subsidiaries reached HKD 1.94 trillion, up 31.95%; in 2025, operating revenue was HKD 45.233 billion, up 6.15%. Overseas subsidiaries served a total of 113 enterprises that listed in the Hong Kong market during the year, raising financing of over HKD 280 billion, with a market share of over 90%, significantly improved compared with 2024, reflecting that the competitiveness and influence of China-funded securities firms in international markets continue to grow. At the same time, securities firms acted as agents for clients’ Hong Kong Stock Connect (Southbound) transactions with a transaction amount of HKD 2.870 trillion. Services provided by Hong Kong subsidiaries, including for Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect transactions, totaled RMB 5.033 trillion, playing an important role in promoting cross-border capital flows and facilitating global asset allocation.

As of the end of 2025, the industry had 16 foreign-invested securities companies with foreign parties holding equity interests. The total assets of foreign-invested companies were RMB 53.469 billion, up 5.44%. In 2025, operating revenue was RMB 10.579 billion, up 32.61%. Companies of different types, based on their respective advantages, serve overseas long-term funds such as sovereign wealth funds and pension funds to invest in China, helping optimize the structure of A-share investors and improve the corporate governance of listed companies. As of the end of 2025, overseas institutions and individuals held nearly RMB 3.7 trillion worth of domestic stocks, maintaining an upward trend, showing that the appeal of Chinese assets is continuing to improve.