B[China Securities Association: In the first half of the year, brokerage business exceeded self-operated business and became the largest source of income for securities companies] On October 8, the China Securities Association issued an analysis of the operating conditions of the securities industry in the first half of this year to securities companies. According to the analysis, in the first half of the year, the industry's five major business incomes, including securities brokerage, proprietary investment, net interest income, investment banking, and asset management, accounted for 35.66%, 34.29%, 12.28%, 5.67%, and 3.68% of operating income respectively. Affected by the active market trading, the income from securities brokerage business increased significantly. The industry-wide securities brokerage business revenue reached 117.6 billion yuan, a year-on-year increase of 53.90%. (Securities Times) B[China Securities Regulatory Commission issued the "Measures for the Supervision and Administration of Futures Companies" and supporting implementation] On September 11, the China Securities Regulatory Commission revised the "Measures for the Supervision and Administration of Futures Companies" and formulated the "Announcement on Matters Related to the Implementation of the "Measures for the Supervision and Administration of Futures Companies". This revision of the "Measures" further improves the main institutional rules for the supervision of futures companies, and plays an important role in strengthening the supervision and management of futures companies, standardizing the behavior of futures companies, preventing risks of futures companies, protecting the legitimate rights and interests of customers, and safeguarding social and public interests. This revision mainly includes the following contents: First, the business of futures companies is divided into basic business (domestic futures brokerage, futures trading consulting) and trading business (futures market making, futures asset management, derivatives trading), and specifically improves the regulatory requirements for the establishment and change of futures companies, business access, etc. The second is to strengthen the supervision of shareholders and actual controllers of futures companies, strengthen shareholders’ explanation and reporting obligations, and improve the transparency of futures companies’ equity.
The third is to improve the corporate governance and internal control of futures companies, requiring futures companies to establish and improve organizational structures, and strengthen compliance management, risk management, internal control requirements, etc. of futures companies. The fourth is to strictly supervise the subsidiaries and branches of futures companies and strengthen filing management. The fifth is to improve the business rules of futures companies, improve general business specifications, and improve major business specifications such as domestic futures brokerage, futures market-making transactions, and futures asset management. Sixth, supervision and law enforcement were comprehensively strengthened and supervision, management and legal liability provisions were further improved. In order to implement the revised "Measures", the China Securities Regulatory Commission has simultaneously formulated the "Implementation Announcement", which stipulates futures companies' application for additional business administrative licenses, the application of regulatory rules for futures companies' overseas subsidiaries, and related business transition arrangements. B[Falling commission rate squeezes industry profits, China Securities Association coordinates research to explore differentiated service pricing transformation of securities companies] September 7th, the long-term downward trend of commission rates in the securities industry has not changed. The reporter learned that the China Securities Association is conducting a thorough investigation on the securities trading commission service model for investors of securities companies to explore the differentiated service pricing transformation of securities companies. The China Securities Association pointed out that homogeneous competition, online low-cost diversion, and insufficient wealth management value-added services are the core driving factors for the decline in commissions, which have caused negative impacts such as pressure on brokerage business income, impact on the quality and efficiency of basic services, and increased risks of unfair competition. This survey also collects information on how to improve the commission management system, including strengthening industry self-discipline, setting rate ranges, and supporting value-added services. It explores feasible plans for transforming from "channel commission" to "service pricing" and promotes the marketization and standardization of the commission pricing mechanism. (Reporter Lin Jian) B[UBS: You can now re-buy technology stocks, and you are more optimistic about A-shares than Hong Kong stocks] On September 1, Wang Zonghao, head of China equity strategy research at UBS, said at a media conference on Tuesday that you can now re-buy technology stocks, and taking into account factors such as funding, you are more optimistic about A-shares than Hong Kong stocks. Wang Zonghao said that the factors that previously triggered the correction of technology stocks include changes in the AI narrative, concentration of positions, and leverage reduction. All three factors have now changed. However, it is expected that investors will look for more non-AI sectors in the second half of the year, making the sector performance of the overall stock market less narrow than in the first half of the year. Compared with Hong Kong stocks, which have more IPOs and placements, A-shares have relatively abundant funds. At the same time, they are more optimistic about hardware stocks, and A-shares also account for a larger proportion of such stocks. Due to the dumbbell configuration, I am also optimistic about bank stocks, and recommend non-ferrous sectors that are not so closely related to AI, as well as overseas themes.
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