Goldman Sachs(US:GS) Zhong Zheng Wang·2025-09-11 06:49Core Viewpoint - The regulatory authorities in China have initiated the classification evaluation of securities companies for 2025, with 107 firms participating in the assessment process [1][2]. Group 1: Evaluation Process - The self-assessment work papers have been completed by the participating securities firms [1]. - The evaluation criteria have been adjusted according to the revised regulations published on August 22, 2023, marking the fourth adjustment since the system's implementation in 2009 [1]. Group 2: Assessment Criteria - The self-assessment work papers consist of two main parts: add-on items and deduction items [1]. - There are 17 add-on indicators, which include rankings of the previous year's main business income, the proportion of equity assets in proprietary investments, and the growth of equity fund sales [1]. - Deduction items focus on capital adequacy, corporate governance, risk management effectiveness, information technology management, customer rights protection, disclosure quality, and any penalties from regulatory bodies [1]. Group 3: Regulatory Changes - The new regulations have removed the "operating income" add-on item, increased the emphasis on Return on Equity (ROE), and expanded the coverage of main business rankings from the top 20 to the top 30 [2]. - New indicators for equity investments have been introduced, emphasizing the regulatory direction of "supporting the strong and limiting the weak" and promoting differentiated development for small and medium-sized securities firms [2]. - Companies with significant violations will see a direct reduction in their evaluation results, while those that proactively correct issues may have their deduction scores reduced [2].