Nan Fang Du Shi Bao·2025-08-19 10:32Core Viewpoint - The number of securities firms applying for fund custody qualifications has significantly decreased, with only Dongwu Securities remaining in the queue as of 2025, following a tightening of application requirements by the China Securities Regulatory Commission (CSRC) [2][3][8]. Group 1: Current Status of Fund Custody Applications - Currently, national commercial banks and a few securities firms hold approximately 80-90% of public and private securities investment funds [2]. - As of 2025, only Dongwu Securities is still in line to apply for fund custody qualifications, a reduction of six firms compared to 2024 [2][3]. - In 2024, there were seven firms, including Dongwu Securities, that were waiting for fund custody qualification, indicating a trend of withdrawal from applications [4]. Group 2: Regulatory Changes and Impacts - The CSRC has proposed to raise the application threshold for fund custody qualifications, aiming to enhance the industry ecosystem and protect investor interests [8][9]. - New requirements stipulate that commercial banks must have a net asset of no less than 50 billion RMB, while securities firms and other financial institutions must have at least 30 billion RMB, up from the previous requirement of 20 billion RMB [8]. - As of the end of 2024, only 23 listed securities firms met the new 30 billion RMB threshold, while 10 firms would not qualify under the new standards [8][9]. Group 3: Additional Regulatory Requirements - The revised regulations also introduce a requirement for securities firms to maintain a regulatory rating of A or above for the past three years to qualify for fund custody [9]. - The new rules include conditions under which fund custody qualifications can be revoked, such as failing to maintain an average fund custody asset scale of at least 5 billion RMB for 36 consecutive months after obtaining the license [9][10]. - The tightening of these regulations is expected to concentrate fund custody business among leading firms, posing challenges for smaller institutions [9].