Securities Association: Brokerage Research Model Relying on Fund Allocation Commissions Is No Longer Sustainable

Recently, the Securities Association of China issued the '2025 Statistical Report on the Operating Conditions of Securities Research Reporting Business by Securities Companies' to brokerages. The report indicates that in 2025, with the implementation of public fund fee reform policies, total industry income from public fund allocation commissions was only half of that in 2021. Affected by declining revenue, the total number of securities researchers has decreased, while staff turnover and departures have increased, leading to frequent personnel movement in the industry. High-quality analysts are migrating to buy-side institutions or overseas subsidiaries, exacerbating the shortage of research talent and resulting in a decline in both the volume and quality of research reports. The traditional profit model relying on allocation commissions is no longer sustainable, necessitating a transformation to explore new business development paths. (Caixin Global)