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

The Securities Times reporter Liu Yiwen

The Securities Times reporter learned that the China Securities Association (hereinafter referred to as the “CSE”) has recently issued to industry participants the “Analysis of Securities Companies’ 2025 Operating Conditions” (hereinafter referred to as the “Analysis”).

According to the data disclosed in the “Analysis,” as of the end of 2025, the cumulative transaction amount of the securities companies’ swap facilities reached RMB 105 billion, bringing incremental capital to the A-share market and strengthening the market’s inherent stability. In addition, foreign institutions and individuals held nearly RMB 3.7 trillion worth of domestic stocks, maintaining a growth trend, as the attractiveness of Chinese assets continued to rise.

More than 80% of securities firms were profitable

The “Analysis” shows that in 2025, China’s securities industry service of the real economy directly financed over RMB 8 trillion. As of the end of 2025, total assets, net assets, and net capital of securities companies nationwide were RMB 1.483 trillion, RMB 37k, and RMB 244 billion, respectively, up year-on-year by 14.66%, 6.53%, and 5.27%, respectively. The industry’s capital strength continued to improve, and overall risk-control indicators were better than regulatory and early-warning standards. The whole industry achieved operating revenue and net profit of RMB 80k and RMB 148.3k, respectively, up year-on-year by 19.95% and 31.20%, respectively, with a steady improvement in operating quality and efficiency. Of them, 128 securities firms were profitable, with a profitability rate of 85.3%; the industry average return on net assets (ROE) was 6.79%, up by 1.29 percentage points year-on-year.

In terms of revenue growth rates, the brokerage business saw the largest increase. In 2025, net revenue from the brokerage business in the whole industry was RMB 33.4k, up 42.50% year-on-year, mainly benefiting from the rebound and favorable performance of the A-share market and a significant increase in trading activity.

In terms of revenue structure, proprietary trading has ranked as the largest source of industry revenue for three consecutive years. In 2025, revenue from proprietary trading in the whole industry was RMB 24.4k, accounting for 34.24%. Among them, the scale of stock investments grew 36.47% year-on-year, and its share of total proprietary investment scale increased by 2.28 percentage points year-on-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. The industry formed a revenue pattern of “diversified support and balanced structure.”

Average net commission rate falls to 2‱

The “Analysis” states that securities companies actively carry out swap-facility operations, increase counter-cyclical planning, take practical actions to stabilize the market and spur the economy, boost investors’ confidence, and support the long-term healthy development of the capital market. As of the end of 2025, the cumulative transaction amount of swap-facility operations reached RMB 105 billion, bringing incremental capital to the A-share market and strengthening the capital market’s inherent stability.

In recent years, securities companies have continued to implement the “reduce fees and commissions” policy. While lowering the participation costs for investors, they have also enhanced the depth of their services. As of the end of 2025, the securities industry provided custody services for RMB 10.558 trillion in assets. The average net commission rate for agency securities buy-and-sell business for the full year fell to two ten-thousandths. The effects of fee reduction and benefits sharing have become prominent. At the same time, listed securities companies actively return value to investors; multiple dividends per year have become the norm. In 2025, cash dividends and share buybacks continued for the second consecutive year with amounts exceeding RMB 50 billion, enhancing investors’ sense of gain. This helps guide investment philosophies to shift toward long-term value investing and accelerates the formation of a market ecosystem with more coordinated investment and financing.

In recent years, tools for allocating major classes of assets have become increasingly rich. As of the end of 2025, there were a total of 1,381 ETFs listed and traded on domestic exchanges, with a size of RMB 6 trillion, reaching a record high. The securities industry’s sales and distribution of financial products had an outstanding balance of RMB 4.69 trillion, up 35.30% year-on-year. Fund investment advisory (“fund investment advisors”) has shifted from scale expansion to quality improvement; some companies achieved breakthroughs in key metrics such as signed scale, number of clients, and reinvestment rates. Investors’ trust in investment advisory services has continued to increase.

As of the end of 2025, the total net value of assets under custody/entrustment for securities companies’ asset management business was RMB 1.021 trillion, up 5.49% year-on-year. Among them, collective asset management and special asset management contributed larger increments, increasing by 13.48% and 14.49%, respectively. In terms of business structure, the share of scale for collective asset management (33.72%) surpassed, for the first time, the share of scale for single asset management (32.84%).

Service capability for science and technology innovation keeps improving

The CSE stated that in 2025, the securities industry continued to enhance its ability to serve technological innovation. Relying on a multi-tier capital market, it comprehensively applied financial tools such as stocks, bonds, and merger and restructuring to precisely empower technology-innovation enterprises. This injected strong momentum to cultivate new productive forces and consolidate the foundation of the real economy.

In 2025, the securities industry supported 116 companies to complete IPO listings, raising RMB 541.17B in financing. Of these, 78 companies listed on the STAR Market, ChiNext, and the Beijing Stock Exchange, raising RMB 182.28B. Meanwhile, securities companies continued to optimize the layout of alternative investment businesses and increased long-term capital support for growth-stage technology-innovation enterprises and small and micro enterprises. In 2025, securities companies and/or their alternative investment subsidiaries participated in follow-on investments in IPOs of companies listed on the STAR Market and the Beijing Stock Exchange, with follow-on investment amounts exceeding RMB 1.2 billion; the cumulative follow-on investments in IPOs of technology-innovation companies exceeded RMB 37 billion.

In 2025, securities companies themselves issued 79 technology-innovation bonds as issuers, raising RMB 185.32B. From bond issuance and capital investment to bond market making, they strengthened all-round support for technology-innovation enterprises. Over the full year, securities companies underwrote 998 technology-innovation bonds, totaling RMB 1.02 trillion, up 66.52% year-on-year, injecting sustained momentum for cultivating and developing new productive forces.

As independent financial advisors, securities companies fully leveraged their professional advantages. Over the full year, they served 82 listed companies to complete major asset restructurings, with transaction values exceeding RMB 600 billion. By deeply participating in industrial-chain integration and major transactions such as cross-regional/cross-border merger and restructuring, they helped listed companies achieve outward-expansion and leapfrog development, providing financial support for building industrial clusters with international influence.

Attractiveness of Chinese assets continues to improve

The “Analysis” also noted that as of the end of 2025, 34 Mainland securities companies had established 36 overseas subsidiaries. Their total assets reached HKD 1.94 trillion, up 31.95% year-on-year; in 2025, overseas subsidiaries generated operating revenue of HKD 1.06M, up 6.15% year-on-year. Over the full year, overseas subsidiaries served 113 companies that listed in the Hong Kong market, with financing amounts exceeding HKD 280 billion and a market share of over 90%, significantly higher than in 2024. This reflects that Chinese securities firms’ competitiveness and influence in international markets continue to strengthen. At the same time, securities companies acted as agents for clients’ Hong Kong Stock Connect (Stock Connect) trading with a transaction amount of HKD 2.870 trillion. Services such as those provided by Hong Kong subsidiaries for Shanghai- Shenzhen-Hong Kong Stock Connect trading amounted to 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, there were 16 foreign-invested securities companies that had foreign participation in ownership or control. The total assets of foreign-invested firms were RMB 60k, up 5.44% year-on-year. In 2025, they achieved operating revenue of RMB 46.9k, up 32.61% year-on-year. Companies of different types have leveraged their own advantages to serve long-term capital investment in China by overseas sovereign wealth funds, pension funds, and others. This helps optimize the A-share investor structure and improve 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 a growth trend, demonstrating that the attractiveness of Chinese assets continues to rise.