Core Viewpoint - The Chinese capital market is undergoing a profound transformation from scale expansion to quality improvement, with a strategic goal of cultivating first-class investment banks and enhancing the functional positioning of the securities industry as outlined in the 2023 Central Financial Work Conference [1][2]. Group 1: Financial Strategy and Regulatory Changes - The 2023 Central Financial Work Conference introduced the goal of building a "financial power" and emphasized the cultivation of first-class investment banks, marking a historical shift in the functional positioning and development model of securities firms [2]. - The China Securities Regulatory Commission (CSRC) issued guidelines in March 2024 to strengthen the regulation of securities companies and public funds, prioritizing functional roles and setting specific requirements for market stability, professional capability enhancement, and long-term investor returns [2][3]. - The revised Securities Company Classification Evaluation Regulations, effective from August 2025, highlight the importance of functional performance and introduce new indicators to guide securities firms in enhancing their service capabilities [3]. Group 2: Business Transformation and Functional Enhancement - Investment banking is shifting from a focus on IPO underwriting to providing comprehensive lifecycle services, addressing the diverse needs of technology and green energy companies throughout their development stages [4][5]. - Wealth management is transitioning from a commission-based model to a client-centric advisory approach, emphasizing the importance of aligning services with clients' long-term wealth preservation and growth goals [6][7]. - Institutional business is evolving from basic trading services to a comprehensive capital intermediary model, driven by the diverse needs of institutional investors for integrated financial services [8]. Group 3: Professional Service Capability Improvement - The establishment of a unique financial culture and incentive mechanisms is crucial for supporting functional development, ensuring alignment with national financial reform and regulatory requirements [9][10]. - Enhancing business collaboration capabilities is essential for breaking down internal resource silos and maximizing comprehensive service efficiency, necessitating organizational adjustments and the establishment of collaborative management structures [11][12]. - Developing advanced financial technology capabilities is a key driver for functional construction, enabling a shift from traditional labor-intensive models to data-driven approaches that enhance client services, research analysis, and risk management [13][14].