Core Viewpoint - The securities investment advisory industry is facing significant challenges with high refund rates and increasing customer complaints, despite benefiting from a recovering capital market [1][2][5]. Group 1: Industry Performance and Challenges - The refund amounts in the securities advisory industry have increased significantly, reaching 1.348 billion yuan in 2021, 2.328 billion yuan in 2022, and 2.445 billion yuan in 2023, marking an 81.4% increase from 2021 to 2023 [2][5]. - Customer complaints have surged, with total complaints rising from 6,040 in 2021 to 23,531 in 2023, a growth of 290.2% [5][6]. - The Shanghai Securities Regulatory Bureau reported a dramatic increase in complaints against investment advisory institutions, from 88 cases in 2022 to 821 cases in 2024, an increase of 833% [2][6]. Group 2: Impact of Malicious "Proxy Rights Protection" - The rise in refunds and complaints is partly attributed to malicious "proxy rights protection" activities, where organizations exploit clients to file complaints and seek refunds [2][5][12]. - These proxy rights protection entities often use deceptive marketing tactics and collaborate with insiders to obtain client information, leading to increased complaints and refunds [8][17]. - The industry has seen a notable increase in refund rates, with one advisory firm reporting a 21.8% refund rate in 2024, up 1.8 percentage points from the previous year [11][12]. Group 3: Regulatory Response and Industry Outlook - Regulatory bodies have intensified scrutiny on the securities advisory sector, leading to an increase in penalties and warnings issued to firms [13][20]. - The financial regulatory authorities have launched initiatives to combat the rise of malicious proxy rights protection, including a six-month crackdown on financial "black and gray industries" [22][23]. - Industry insiders emphasize the need for improved compliance and service quality within advisory firms to mitigate the impact of these malicious activities [18].