Mei Ri Shang Bao·2025-06-23 05:53Core Viewpoint - The trend of securities firms closing down branches is accelerating, driven by the shift towards online operations and the need for cost reduction and efficiency improvement [1][4]. Group 1: Branch Closures - Caixin Securities announced the closure of three branches, contributing to over 50 branch closures by more than 20 securities firms this year [2][3]. - Other firms, such as Founder Securities, have also been actively closing branches, with a total of eight closures reported this year [2][4]. - The closures are part of a broader industry trend, with over 30 firms expected to announce branch closures in 2024, totaling more than 100 branch closures [4]. Group 2: Reasons for Closures - The closures are primarily aimed at optimizing branch layouts and resource allocation, with many firms transitioning to a centralized operation model for retail clients [3][4]. - The decline in traditional brokerage commission rates and high fixed costs are significant factors driving the need for branch closures [4]. - The rise of financial technology and the increasing adoption of AI in the industry have reduced the reliance on physical branches for services such as account opening and trading [4]. Group 3: Future Outlook - Despite the ongoing trend of branch closures, the industry does not foresee a complete disappearance of physical branches; instead, a hybrid model combining online and offline services is expected to emerge [5]. - Some firms are innovating by establishing branches that focus on digital wealth management while retaining essential offline services for high-net-worth clients [5].