Core Insights - The report highlights the operational status of the securities research business in 2024, indicating a significant decline in commission income from institutional clients and an increase in industry concentration [1][4]. Group 1: Industry Overview - In 2024, 83 securities firms published a total of 96,156 research reports on domestic listed companies, a decrease of 5% from 2023 [3]. - 60 firms published 14,732 research reports on Hong Kong and other overseas listed companies, marking a growth of 5.37% [3]. - 93 firms released a total of 29,441 macro and strategy research reports [3]. Group 2: Institutional Client Dynamics - The number of securities firms serving institutional clients remained stable, with 92 firms providing research reports to public fund companies, an increase of 2 firms from 2023 [2]. - Commission income from public funds decreased by 31.67% year-on-year, with the top 10 firms accounting for 47.38% of total industry commission income, indicating a rise in industry concentration by 0.8 percentage points [2][4]. Group 3: Key Characteristics of Research Business - The decline in commission income from institutional clients is attributed to the public fund fee reduction reform, with total commission income falling to 19.865 billion yuan, a decrease of 22.48% from 24.868 billion yuan in 2023 [4]. - The industry is experiencing increased concentration, with analyst resources and commission income becoming more concentrated among leading firms [4]. - Securities firms are enhancing their research coverage of Hong Kong and U.S. stocks, driven by the growing interconnectivity of domestic and international capital markets [4]. Group 4: Quality and Compliance Enhancements - There is a continuous improvement in the compliance and quality review standards for research reports, with an increase in the number of compliance personnel and enhanced awareness of compliance within the industry [5]. Group 5: Strategic Recommendations - The China Securities Association suggests that firms should enhance the independence and professionalism of their research, focusing on deep industry chain research and establishing a scientific valuation method for emerging industries [6][7]. - Firms are encouraged to diversify their revenue sources beyond commission fees, exploring consulting service fees and data product fees to avoid intense competition based solely on trading commissions [7]. - There is a call for firms to adapt to the needs of cross-border business development, enhancing global comparative analysis and asset pricing capabilities [7].