Securities Industry Matthew Effect Deepens into Three-Tier Stability; CITIC Net Profit Equals Bottom 35

The Matthew effect in the securities industry continues to deepen, accelerating the reshaping of the industry landscape. Data from 45 comparable brokerages in the first quarter show that resources and business are further concentrating among the top players. CITIC Securities posted a quarterly net profit of RMB 10.216 billion, equivalent to the combined net profit of the bottom 35 brokerages; its proprietary trading income of RMB 11.679 billion also matched the total proprietary income of the bottom 32 firms. The top three brokerages accounted for 26.85% of total brokerage revenue, 57.21% of asset management revenue, and 88.53% of the total investment banking revenue of 42 firms.

IPO business this year has shown a highly concentrated trend. As of July 28, on the project side, the three brokerages Guotai Haitong, CICC, and CITIC Securities held underwriting shares close to 40%, while half of the brokerages with projects secured only one deal each. On the capital side, six brokerages with underwriting volumes exceeding RMB 10 billion captured over 70% of total fundraising, giving them core pricing power. On the revenue side, the top three collectively took more than half of underwriting and sponsorship income, leaving the remaining less-than-half market to be divided among the other 25 brokerages.

External M&A has become a key variable accelerating industry concentration. Since 2023, multiple modes of mergers have been implemented intensively, including the merger of Guotai Junan and Haitong Securities, the 'three-in-one' integration of CICC, the complementary integration of 'Guolian + Minsheng', and regional acquisitions such as Guohai Securities' purchase of Datong Securities, continuously providing incremental support for the rise in industry concentration.