Core Viewpoint - The number of brokerages applying for fund custody licenses has significantly decreased from seven to one due to heightened regulatory entry requirements, leading to a wave of withdrawals from applications [1][2][4][7]. Group 1: Regulatory Changes - The China Securities Regulatory Commission (CSRC) has raised the entry thresholds for fund custody qualifications, particularly increasing the net asset requirements for commercial banks to 500 billion and for securities companies to 300 billion [8][9]. - The new regulations also require institutions to have a regulatory rating of at least level 2 or A class over the past three years, along with substantial operational capabilities [8][9]. Group 2: Withdrawal of Applications - As of August 15, only Dongwu Securities remains in the queue for fund custody qualifications, while six other brokerages have withdrawn their applications due to inability to meet the new requirements [3][4][5]. - The withdrawal trend began in July, with institutions receiving regulatory guidance to retract their applications [1][5]. Group 3: Current Landscape - Currently, there are 68 institutions with fund custody qualifications, including 36 banks and 30 brokerages, indicating that most small and medium-sized brokerages still lack custody licenses [5][11]. - The majority of fund custody business is concentrated among a few large institutions, with national commercial banks and a few large securities firms managing 80% to 90% of public and private securities investment funds [11].

Core Viewpoint - The number of brokerages applying for fund custody licenses has significantly decreased from seven to one due to heightened regulatory entry requirements, leading to a "withdrawal wave" among institutions that could not meet the new standards [2][6][9]. Group 1: Regulatory Changes - The China Securities Regulatory Commission (CSRC) has raised the entry thresholds for fund custody qualifications, requiring commercial banks to have a net asset of at least 500 billion and securities companies to have at least 300 billion [9][10]. - The new regulations also stipulate that institutions must have a regulatory rating of level 2 or A class or above for the past three years and demonstrate substantial operational capabilities [10]. Group 2: Withdrawal of Applications - As of August 15, only Dongwu Securities remains in the queue for fund custody qualifications, while six other brokerages have withdrawn their applications due to inability to meet the new requirements [2][4][6]. - The withdrawal trend began in July when several institutions received regulatory guidance to retract their applications [2][6]. Group 3: Current Landscape - Currently, there are 68 institutions with fund custody qualifications, including 36 banks and 30 brokerages, indicating a concentration of custody business among larger institutions [7][12]. - The new regulations have led to a situation where the majority of small and medium-sized brokerages lack fund custody licenses, further consolidating the market among larger players [12].

Group 1 - The core viewpoint of the article highlights that several brokerages and banks have withdrawn their applications for fund custody licenses due to increased regulatory entry requirements since the beginning of the year [1] - Only one brokerage, Dongwu Securities, remains in the queue for fund custody qualifications, down from seven brokerages at the end of 2024 [1] - The withdrawal of six brokerages from the fund custody qualification application process indicates a significant tightening of regulatory standards in less than a year [1]