Core Viewpoint - The Chinese capital market is undergoing a significant transformation, with a focus on high-quality development and the establishment of international first-class investment banks by 2035, driven by new policies and regulatory frameworks [1][2]. Group 1: Industry Transformation - In 2024, the total assets of the Chinese securities industry reached 12.93 trillion yuan, a year-on-year increase of 9.3%, while net profit surged 21.3% to 167.257 billion yuan, indicating high growth alongside a demand for quality development [2]. - The average commission rate has declined to 0.024%, and the number of brokerage outlets has decreased from a peak of 11,850 in 2021 to 11,647 in 2024, reflecting the diminishing returns of relying solely on scale expansion [2]. - New policies such as the "New National Nine Articles" and "Two Strong, Two Strict" have accelerated resource consolidation towards leading firms, with the top three, five, and ten firms accounting for 36%, 50%, and 74% of total industry revenue, respectively [2]. Group 2: Business Model Evolution - Securities companies are rethinking their business models across various sectors, including brokerage and wealth management, investment banking, asset management, and proprietary trading, as traditional growth strategies become less effective [3]. - The focus is shifting from asset and manpower expansion to creating differentiated competitive advantages, marking the beginning of the "Investment Banking 2.0" era in China [3]. Group 3: Core Competencies for Leading Investment Banks - Leading investment banks must develop core capabilities to meet the comprehensive needs of enterprises, institutions, and residents, including customized financing solutions and full-chain brokerage services [5]. - The emphasis is on enhancing institutional mechanisms and collaborative efficiency to respond to the structural demand upgrades in the real economy and household wealth [5]. Group 4: Technological and Demand-Driven Innovations - The Chinese economic strategy prioritizes high-quality development, with a focus on cultivating new productive forces, where technology finance plays a crucial role [6]. - Securities firms are expected to act as key players in channeling capital into innovative sectors, with examples like CICC serving over 6,100 specialized enterprises and facilitating significant green finance projects [6]. Group 5: Internationalization and Competitive Landscape - The goal of becoming a financial powerhouse includes nurturing first-class investment banks, with a clear roadmap set by the "New National Nine Articles" aiming for significant progress by 2035 [9]. - The evolution of the U.S. securities industry serves as a reference for Chinese firms, highlighting the importance of both comprehensive and specialized institutions in a competitive landscape [9][10]. - Leading firms like CICC are enhancing their international presence and capabilities, evidenced by their significant involvement in major IPOs and cross-border projects [12]. Group 6: Responsibilities and Long-Term Goals - As key players in the capital market, leading securities firms must embrace their roles as compliance benchmarks, industry ecosystem guardians, and conduits for regulatory policies [14]. - Achieving the status of a global first-class investment bank requires a long-term commitment to overcoming challenges and enhancing global competitiveness [14].
中资券商的下一个10年：做难而正确的事