A-shares incremental funds reveal all! The China Securities Association: Broker-dealer swap convenience totals 105 billion yuan, with proprietary stock investment scale increasing by 36%

Recently, reporters learned that the CSRC (China Securities Association) has issued to the industry the “2025 Annual Operating and Business Performance Analysis of Securities Companies” (hereinafter referred to as the “Analysis”).

The “Analysis” shows that by the end of 2025, the cumulative operating amount of securities firms’ swap facilitation totaled RMB 105B, bringing incremental capital to the A-share market and enhancing the inherent stability of the capital market. Last year, the scale of securities firms’ proprietary equity investment increased year over year by 36.47%, and the proportion of equity investment scale in the total proprietary investment scale rose by 2.28 percentage points year over year. The cumulative annual turnover amount of the A-share market first exceeded RMB 400 trillion, up by more than 60% year over year. By the end of 2025, foreign institutions and individuals held nearly RMB 3.7 trillion worth of domestic stocks, maintaining an upward trend in recent years, reflecting a continuous improvement in the attractiveness of Chinese assets.

In 2025, the average net brokerage commission rate for agency securities trading business decreased to 2 per 10,000, and the effectiveness of fee reductions and benefit-sharing for investors was highlighted. Last year, about 15% of securities firms incurred losses.

About 15% of securities firms incur losses

The CSRC (China Securities Association) said that in 2025, the securities industry provided direct financing to the real economy exceeding RMB 8 trillion, and provided custody services for customers’ assets totaling RMB 105.58 trillion. By the end of 2025, the total assets, net assets, and net capital of securities companies nationwide were RMB 14.83 trillion, RMB 3.34 trillion, and RMB 2.44 trillion, respectively, increasing year over year by 14.66%, 6.53%, and 5.27%. The industry’s capital strength continued to grow, and overall risk-control indicators were better than regulatory and early-warning standards. The industry realized operating revenue and net profit of RMB 541.71 billion and RMB 4M, respectively, up by 19.95% and 31.20% year over year. Overall operating performance improved steadily.

128 securities firms were profitable, with a profitability penetration rate of 85.3%. The industry’s average return on net assets (ROE) was 6.79%, up 1.29 percentage points year over year. Judging from revenue growth rates, the brokerage business saw the largest increase. In 2025, the industry’s net revenue from brokerage business was RMB 37k, up 42.50% year over year, mainly benefiting from improved A-share index performance and a significant increase in trading activity.

In terms of revenue composition, proprietary business ranked as the largest source of revenue for three consecutive years. In 2025, the industry’s proprietary business revenue was RMB 80k, accounting for 34.24%. Among this, the scale of equity investments grew 36.47% year over year, and the proportion of the equity investment scale in the total proprietary investment scale increased by 2.28 percentage points year over year. The brokerage business, net interest income, investment banking business, and asset management business contributed 33.68%, 11.95%, 7.38%, and 4.41% of operating revenue, respectively, forming a revenue structure of “diversified support and balanced structure,” and the industry’s overall revenue structure remained stable.

Brokerage commission rate falls to 2 per 10,000

The “Analysis” states that securities companies actively carried out swap facilitation operations, strengthened counter-cyclical positioning, stabilized the market and promoted market development with practical actions, boosted investor confidence, and supported the long-term healthy development of the capital market. By the end of 2025, the cumulative operating amount of swap facilitation was RMB 1.06M, bringing incremental capital to the A-share market and enhancing the inherent stability of the capital market.

In recent years, securities companies have continued to implement policies of “reducing fees and commissions,” while lowering investors’ participation costs and improving the depth of services. By the end of 2025, the securities industry provided custody services for assets totaling RMB 105.58 trillion. For the whole year, the average net brokerage commission rate for agency securities trading business fell to 2 per 10,000, and the effectiveness of fee reductions and benefit-sharing was evident.

Listed securities companies have actively returned value to investors; multiple rounds of dividends within a year have become the norm. In 2025, cash dividends and share buybacks consecutively exceeded RMB 50 billion for two years, enhancing investors’ sense of gain and helping guide investment philosophy toward long-term value investing, accelerating the formation of a more coordinated market ecosystem for investment and financing.

By the end of 2025, there were 1,381 ETFs listed and traded on domestic exchanges, with a scale of RMB 6 trillion, reaching a historical high and making tools for allocating among major asset classes increasingly rich; the industry’s scale of distribution of financial products under agency was RMB 4.69 trillion, up 35.30% year over year. Fund investment advisory services have shifted from scale expansion to “quality enhancement.” Some companies achieved breakthroughs in key indicators such as signing scale, number of customers, and reinvestment rates, and investors’ trust in investment advisory services has continued to improve.

Judging from the retained sales scale of publicly offered fund products, securities companies’ channel sales capabilities have improved notably. Among them, the retained scale of equity index funds accounted for more than 50% of the market, supporting high-quality development of index-based investing.

It is reported that by the end of 2025, the total net value of assets entrusted for asset management by securities companies was RMB 10.21 trillion, up 5.49% year over year. Of this, collective asset management and special asset management contributed substantial incremental growth, rising 13.48% and 14.49%, respectively. From the perspective of business structure, the share of collective asset management business (33.72%) exceeded the share of single-asset management business (32.84%) for the first time. From the perspective of product investment types, the scale of non-fixed-income asset management was about RMB 3.60 trillion, up 16% year over year.

Foreign institutions and individuals hold nearly RMB 3.7 trillion worth of domestic stocks

The “Analysis” shows that by the end of 2025, 34 mainland securities companies had set up 36 overseas subsidiaries. The total assets of overseas subsidiaries were HKD 1.94 trillion, up 31.95%. In 2025, they realized operating revenue of HKD 148.3k, up 6.15% year over year. Overseas subsidiaries served a total of 113 enterprises that entered the Hong Kong market in 2025, with financing amounts exceeding HKD 280 billion, and a market share exceeding 90%, significantly higher than in 2024. This reflects that the competitiveness and influence of Chinese securities firms in international markets continue to strengthen. Securities companies’ agency clients’ Hong Kong Stock Connect trading amount was HKD 28.70 trillion; services such as those provided by Hong Kong subsidiaries contributed RMB 50.33 trillion to Northbound Stock Connect trading for Shanghai and Shenzhen. These have played an important role in promoting cross-border capital flows and facilitating global asset allocation.

At the end of last year, the industry had 16 foreign-funded securities companies with foreign entities holding shares as joint investors (including joint ventures and participation). The total assets of foreign-invested companies were RMB 33.4k, up 5.44%. In 2025, operating revenue was RMB 24.4k, up 32.61%. Companies of different types have relied on their respective strengths to serve long-term capital such as overseas sovereign funds and pension funds to “invest in China,” helping optimize the structure of A-share investors and improve corporate governance of listed companies. By the end of 2025, foreign institutions and individuals held nearly RMB 3.7 trillion worth of domestic stocks, maintaining an upward trend in recent years, highlighting a continuous improvement in the attractiveness of Chinese assets.

Continuously improving the ability to serve technological innovation

The CSRC (China Securities Association) said that in 2025, the securities industry continued to enhance its ability to serve technological innovation. Relying on a multi-level capital market and comprehensively using financial tools such as stocks, bonds, and mergers and acquisitions restructuring, it precisely empowered tech companies and injected strong momentum into cultivating new quality productive forces and consolidating and expanding the foundation of the real economy.

Last year, the securities industry served 116 companies’ IP0 listings and enabled financing of RMB 219.44B. Of these, it served 78 companies that listed on the Sci-Tech Innovation Board, the ChiNext, and the Beijing Stock Exchange, enabling financing of RMB 182.28B. Securities companies continued to optimize the layout of alternative investment businesses and increased long-term capital support for growth-stage tech firms and small and medium-sized enterprises. In 2025, securities companies or their alternative subsidiaries followed up investments (follow-on participation) in companies with IP0 on the Sci-Tech Innovation Board, the Beijing Stock Exchange, and others, exceeding RMB 1.2 billion in total; the cumulative follow-on investment in tech companies’ IPOs exceeded RMB 37 billion.

In 2025, securities companies as issuers themselves issued 79 tech innovation bonds, raising RMB 185.32B. From bond issuance to capital investment, and from bond underwriting to market-making, it strengthened all-round support for tech companies. Throughout 2025, securities companies underwrote 998 technology innovation bonds, totaling RMB 1.02 trillion, up 66.52% year over year, injecting continuous momentum into cultivating and developing new quality productive forces.

As independent financial advisers, securities companies fully leveraged their professional strengths. Throughout the year, they served 82 listed companies to complete major asset restructurings, with transaction amounts exceeding RMB 600 billion. By deeply participating in industry chain integration, cross-region/cross-border mergers and acquisitions restructurings, and other major transactions, they helped listed companies achieve outward expansion and leapfrogging development, providing financial support for building industrial clusters with international influence.

Layout: Wang Yunpeng

Proofreading: Yang Shuxin