China’s brokerage sector sees mega-mergers but remains competitive and fragmented

China’s 12 trillion yuan ($ 1.6 trillion) will continue to be fragmented and competitive, despite the ongoing consolidation set by Beijing, according to S & P Global Ratings.

“In the next two years, the landscape will probably not change significantly,” the report reports on Friday. “The best players will catch a small market share, but the sphere will probably be fragmented and competitive.”

China’s securities field, more than 140 firms, collision with intensive competition for prices, services and signing standards, which prompts repeated regulatory warnings, said the firm said. “The practice of aggressive undersignation can increase the risks of securities firms.”

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Recently, some Chinese investment banks offered fees as much as 0.01%, Hong Kong Kong to sponsor and involve and involve the battery manufacturer of modern ampener technology (EV). It is said that CATL is looking for at least 5 billion users from the secondary listing.

In November, the China Securities Regulatory Commission fined Zheshang Securities for several shortcomings. Photo by Reuters Alt = China Securities Regulatory Commission fines Zheshang securities for several shortcomings in November. Photo, Reuters>

The Control Bureau of the China Securities Regulatory Commission fined Zheshang securities in November in November to prevent sufficient independence in certain sponsorships and significantly payments to industry standards.

On March 20, 2024, the CSRC provided guidelines to rebuild the industry to tighten its competitiveness and to build world-class investment banks until 2035.

At least six mergers have been registered since then. At the end of last year, Guotai Jun’s securities and Haitong Securities declared 103 billion yuan merging, China’s largest brokerage activities.

On Friday, Chinese media reported that the new organization will be called Gwotay Haitong.

Last month, Reuters reported that the Chinese State Capital Corpse would be united with the securities of the Galaxy of China, which were rejected by the two firms.

Transactions announced since 2023, at the end of June 2024, accounted for about 20% of the total assets of the sector, according to S & P.