Core Viewpoint - The recent approval of eight additional securities firms for the comprehensive account pilot program indicates a significant acceleration in the transformation of wealth management within the brokerage industry, expanding the total number of participating firms from 12 to 20 [1][2]. Summary by Sections Expansion of Pilot Program - Eight securities firms, including Guolian Minsheng and Dongfang Securities, have been approved for the comprehensive account pilot, marking the third expansion since the program's inception [1]. - The pilot program was initially launched in December 2021 with ten firms, and the number has now increased to 20 [1][2]. Purpose and Significance of the Pilot - The comprehensive account pilot aims to optimize the account management system of securities firms, allowing for seamless internal fund transfers among various account types, enhancing customer experience and service efficiency [4][5]. - The pilot addresses the need for integration and optimization of the account system as brokerage services diversify and client accounts increase [4]. Performance of Newly Approved Firms - The newly approved firms have shown strong performance in brokerage and wealth management, with net income from brokerage services in the first half of the year reaching significant figures, such as 30.49 million for Ping An Securities, reflecting a year-on-year increase of 57.13% [6]. Impact on Client Experience - The optimization of securities accounts is expected to greatly enhance the efficiency and convenience of fund transfers for clients, allowing for direct transfers between different accounts without the need for intermediary steps [7]. - Clients will benefit from a comprehensive view of their assets, enabling better management and allocation of their wealth [7][8]. Competitive Advantage in Wealth Management - The optimization of account functions is seen as a way to enhance the competitiveness of brokerages in the wealth management sector, allowing for a more integrated financial management experience for clients [8]. - The pilot program supports the development of a comprehensive financial account that integrates various services, including stock trading and fund advisory [8][9]. Future Developments - Analysts predict that further optimizations may lead to a more integrated view of client assets and liabilities, potentially allowing for fund transfers across different brokerage accounts [9].

Core Insights - The recent expansion of the account management function optimization pilot program marks a significant step in the development of a comprehensive account service system among securities firms, increasing the number of qualified firms to 20 [1][4]. Group 1: Pilot Program Expansion - Eight new securities firms, including Dongfang Securities and Dongwu Securities, have been approved to join the account management function optimization pilot, bringing the total to 20 firms [2][4]. - The pilot program, initiated in December 2021, has seen a gradual increase in participating firms, with the first 10 firms approved in 2021 and additional firms added in 2022 [4]. Group 2: Regulatory Requirements - The China Securities Regulatory Commission (CSRC) has set strict guidelines for the participating firms, emphasizing the importance of client fund safety, identity verification, and compliance with regulations [2][5]. - Firms are required to implement robust risk management and investor education measures as part of the pilot program [2][5]. Group 3: Benefits of the Optimization - The optimization of account management functions aims to enhance the efficiency of fund allocation for investors and improve the overall client experience [5][6]. - Securities firms are developing integrated account systems that allow for seamless fund transfers and better asset management, which is expected to meet the diverse wealth management needs of clients [6]. Group 4: Industry Impact - The comprehensive account system is seen as a foundational element for the transformation of securities firms towards a client-centric model, facilitating operational efficiency and innovation [6]. - The pilot program's success is anticipated to strengthen the competitive advantage of participating firms by enabling one-stop management of various account types, thus breaking down financial barriers for investors [6].