Zheng Quan Shi Bao·2025-09-22 00:48Core Insights - The number of securities analysts in China has reached a historical high, surpassing 6,000, with significant growth observed in recent years [2][3] - Despite the increase in analysts, the market environment is challenging, with a decline in commission income due to public fund fee reforms, necessitating a transformation in brokerage research departments [8] Analyst Growth - As of September 19, 2023, there are 6,162 analysts, with over 400 new additions this year [3] - The analyst count has shown rapid expansion, crossing 3,000 in 2018 and 4,000 in 2022, with projections indicating over 5,000 by 2024 [3] - The growth is attributed to the expansion of institutional investors and a significant talent gap in brokerage research, leading to large-scale recruitment, especially from recent graduates [3][5] Structural Changes in Recruitment - Large brokerages primarily focus on internal growth, while smaller firms are combining internal development with external recruitment [5] - Among firms with over 150 analysts, notable growth is seen in companies like CITIC Securities and Industrial Securities, with a majority of new analysts being internally trained [5][6] - Smaller firms like Guojin Securities and Dongfang Fortune Securities have also seen significant external recruitment, with many analysts transferring from other brokerages [6][7] Revenue Challenges and Strategic Shifts - The brokerage research environment is under pressure, with commission income dropping over 30% in the first half of 2023, highlighting the need for diversification in revenue sources [8] - Brokerages are exploring new profit growth points, including collaborations with local governments and expanding international and fintech operations [8] - Some firms are shifting towards comprehensive research models, balancing external revenue generation with internal services [8] Trends in Analyst Employment - The pace of recruitment among top brokerages has slowed, with firms like CICC and CITIC Securities showing minimal growth in analyst numbers this year compared to previous years [9] - A trend of experienced analysts moving to buy-side institutions or other sectors is emerging, indicating a rebalancing of talent within the industry [9]