The development prospects of the securities industry

Domestic securities companies’ revenue will decline in 2022

Securities are a general term for various types of property ownership or debt certificates. They are used to prove that the security holder has the right to purchase and sell securities based on the content on the face of the ticket. Obtain evidence of relevant rights and interests. Due to the cyclical nature of the securities market, the operating income of domestic securities companies fluctuated greatly from 2011 to 2022. 2015 was the peak in the past ten years, with revenue reaching 575.155 billion yuan.

The total operating income of domestic securities companies in the first three quarters of 2022 was 304.242 billion yuan, a year-on-year decrease of 16.95%, which was mainly affected by the escalation of the new crown epidemic and the cooling of the securities market.

Agency securities trading business and securities investment income account for a large proportion of income

From the perspective of business income composition, in the income structure of the securities industry, agency securities trading business (including seat rental) and securities Investment income (including changes in fair value) accounts for a relatively large proportion, accounting for 87.711 billion yuan and 56.049 billion yuan respectively in the first three quarters of 2022, accounting for 28.83% and 18.42% of the total industry revenue.

The net profits of the industry are cyclical

Due to the cyclical characteristics of the securities market, the net profits of my country's securities companies generally fluctuate from 2011 to 2022. The net profits of domestic securities companies showed an upward trend from 2011 to 2015, a downward trend from 2016 to 2018, and an upward trend from 2019 to 2021. In the first three quarters of 2022, the net profit of domestic securities companies was 116.763 billion yuan, a year-on-year decrease of 18.89%, which was mainly affected by the cooling of the domestic securities market.

The asset scale is on an upward trend

Judging from the changes in the total assets and net assets of the securities industry, from 2011 to 2022, the total assets and net assets of Chinese securities companies have shown an overall increase trend. At the end of the third quarter of 2022, the total assets of the country's 140 securities companies were 10.88 trillion yuan, and the net assets were 2.76 trillion yuan, a slight increase year-on-year.

The revenue of the securities industry is expected to reach 666.7 billion yuan in 2028

With the gradual recovery of our country’s economy, the end of the Fed’s interest rate hike cycle, and the easing of geopolitical conflicts, it is expected that my country’s securities industry will The scale of operating income will continue to grow in the next few years, and by 2028, the scale of my country's securities market is expected to reach 666.7 billion yuan. For more detailed research and analysis of this industry, please see the "Research and Investment Strategic Planning Analysis Report on the Development of China's Securities Industry" by the Qianzhan Industry Research Institute