subject: China Securities Industry Report, 2009-2010 [print this page] The end of June 2010 saw a total of 106 securities companies and 160, 000 employees in Chinese securities industry. In regard to regional distribution, Beijing, Shanghai and Guangdong possess the largest quantity of securities companies by 17, 14 and 23, respectively, a share of altogether 50.5%, followed by Jiangsu, Sichuan, Fujian, etc.
Regional Distribution of Securities Companies in China, 2010
Source: ResearchInChina
In 2009, the operating income of Chinese securities companies added up to RMB205.3 billion, of which the revenue from brokerage reached RMB142.9 billion, accounting for 69.6%. However, the high proportion of brokerage led to the unfavorable revenue structure of securities companies as well as the vulnerability to stock fluctuations. The bad market environment in the first half of 2010 caused a sharp drop in their earnings from brokerage and proprietary business, but the investment banking service was exclusively highlighted.
Brokerage Revenue Percentage of Partial Securities Companies, 2009
Source: Securities Association of China; ResearchInChina
Against the vigorous development of Chinese securities industry, foreign investment banks successively enter the Chinese market and develop their business mainly through two means: 1) to set up branches like representative offices to assist Chinese enterprises in overseas listing, financial consultancy, B-share trading, etc.; 2) to join hands with Chinese enterprises to establish securities joint ventures so as to obtain the qualifications for such businesses as securities brokerage and underwriting in Chinese securities market. Up till June 2010, there were altogether 9 foreign-funded joint stock securities companies in China.
Foreign-funded Joint Stock Securities Companies in China
