China's Securities Companies in 2023: A "Winner's Hand" Competition

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1. Market environment, silence and pressure

In the first half of 2023, China's brokerage business hit a low point.Search engine rankingsAccording to market research, the industry's overall revenue continues to decline, and profitability is also facing huge challenges. Brokerage business performance has declined due to market fluctuations, investment banking business is striving to find a breakthrough amid intensified competition, credit business scale has shrunk, and proprietary business has become the only growth point.

2. The strategy of "winning hand" to maintain silence

Huachuang Securities Research Report predicts that the total operating income (excluding other business income) of 43 listed securities companies in the second quarter of 2024 will be 101.3 billion yuan (-9% year-on-year), and the net profit attributable to the parent company will be 37.5 billion yuan (-3.8% year-on-year). This reflects that securities companies must adopt a more pragmatic strategy under the pressure of the market environment.

Dongxing Securities Research Report pointed out that the trend of strict supervision continues, and multiple businesses such as brokerage investment banking and credit have been affected. Since the beginning of the year, the trading volume has shown a slow downward trend, which has put pressure on the wealth management business of brokerages. While building its own hard power, the investment banking business is waiting for signals of regulatory relaxation. Market fluctuations may continue, and asset allocation capabilities and risk control capabilities will become the key to the "winner" of brokerage investment.

Ran Zhaobang, an analyst at China Cinda Securities, believes that brokerage business performance may be under pressure due to the downward trend of market beta; IPO supervision is becoming stricter, and investment industry performance is under pressure; the scale of margin trading in the market is declining, and the scale of credit business is shrinking; proprietary trading is still the deciding factor, and the downward trend in interest rates may still contribute positive returns to securities firms' proprietary bonds.

3. Innovation and adaptation to meet new challenges

In this complex environment, securities firms need to enhance the resilience of their business through innovation and adaptation.

• Digital Innovation: The self-service platform can help brokers provide a more convenient and efficient service experience, while reducing operating costs and enhancing market competitiveness.
• Investment strategy: Combined with financial report analysis, investors and analysts can more accurately grasp the future development trends of securities companies and formulate more precise investment strategies.

4. Financial reports, insight into the truth

Finally, readers are advised to consult the financial reports of individual brokerage firms for more specific information on financial performance.

5. Looking to the future

China's securities industry is at a turning point. Only through innovation and adaptation can it survive and develop under the pressure of the market environment.

Additional Notes:

• The content of the article refers to the keywords and analysis points in the original text, and develops the discussion based on the keywords.
• The article uses the idea of ​​symbolic dead leaves to reflect the silence and pressure of industry competition.
• Some market analysis is included in the article to provide readers with more comprehensive information.
• Finally, it is recommended to consult the financial reports for more specific information on financial performance.