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From the perspective of the competitive landscape

Posted: Tue Feb 18, 2025 4:39 am
by Rina7RS
Securities are a capitalintensive industry, and the size of net capital is an important factor in determining the business scale of securities companies . Securities companies with capital advantages can further expand their business scale or enter new business areas through horizontal mergers and acquisitions, and continue to grow bigger and stronger, thereby improving their overall competitiveness and ability to resist risks.

In recent years, the net profit growth rate of leading securities firms has been significantly better than the industry average, with lower volatility and greater profitability across cycles.
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According to statistics from the China Securities Association and reports from listed companies, as of the end of 2023, the total assets of the top five securities companies in China by total assets accounted for approximately 40.02% of the entire industry, and the total operating income of the top five securities companies in terms of operating income accounted for approximately 46.74% of the entire industry, with a significant head effect.

Domestic securities firm mergers and acquisitions and restructuring are conducive to improving industry concentration, optimizing the market structure, enhancing capital strength, and reducing reckless price competition, thereby creating investment banks and investment institutions with international competitiveness and market leadership.