Core Insights - The China Securities Association conducted a statistical analysis of the securities research report business for 2024, highlighting structural changes and development directions in the industry during its transformation [1] Personnel Structure Optimization - By the end of 2024, 102 securities firms established independent research departments or subsidiaries, employing a total of 9,619 people, a decrease of 1.05% from the end of 2023 [2] - The number of analysts in these departments reached 5,628, representing a 20.69% increase despite an overall decline in securities personnel, with analysts making up 58.51% of the total research department staff [2] - The number of chief economists hired by firms reached 42, with most managed by research departments [2] Personnel Flow Data - In 2024, 988 analysts left their positions, a 29.66% increase from 2023, while new hires dropped by 29.01% to 1,786 [3] - There is a trend of analysts moving from smaller to larger firms, leading to a high turnover rate and a rapid decline in new hires [3] - The number of firms providing research reports to institutional clients remained stable, with 92 firms serving public fund companies and 59 serving insurance companies [3] Revenue Structure Changes - Commission income from public fund clients decreased by 31.67% in 2024, with the top 10 firms accounting for 47.38% of total industry commission income, indicating a rise in industry concentration [4] - Non-public fund commission income saw a slight increase of 6%, driven by growing investments from non-public institutional investors [4] - A total of 83 firms published 96,156 research reports on domestic listed companies, a 5% decrease from 2023, indicating a shift towards quality over quantity in research output [4] Globalization Efforts - The competition in the securities research business intensified, with a significant decline in commission income due to public fund fee reductions, which fell to 19.865 billion yuan, a 22.48% decrease from 2023 [5] - The number of firms publishing research reports on overseas listed companies increased, with large firms accelerating their research integration across A-shares, Hong Kong stocks, and U.S. stocks [6] - The China Securities Association proposed three development suggestions: enhancing research independence and professionalism, clarifying research positioning, and adapting to cross-border business needs [6]