The brokerage sector in China sees huge business owners, but is still able to compete and retain

The 12 trillion yuan mediation sector ($ 1.6 trillion) will remain fragmented and competitive, despite the constant monotheism imposed by Beijing to create global entities, according to the global S&P classifications.

“Over the next two years, the scene will not likely change largely,” the classification agency said in a report on Friday. “The best players will get more share in the market, but the sector is likely to remain fragmented and compete.”

The company said that the securities sector in China, with more than 140 companies, faced intense competition in prices, services and subscription standards, which sparked repeated organizational warnings. “The practice of aggressive subscription can increase the risk of securities companies.”

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Recently, some Chinese investment banks have provided low fees up to 0.01 percent in an attempt to care and include Hong Kong’s contemporary APEREX technology, or CATL, the world’s largest battery manufacturer (EV) in the world, which is the state -owned Securities Times. Catl is said to seek at least $ 5 billion in the secondary list.

In November, the Securities Organization Committee punished in November for several shortcomings. Photo: Reuters alt = Chinese Securities Regulatory Committee to punish Zheshang Securities in November for several shortcomings. Photo: Reuters>

The Supervision Office of the Organizational Committee in China in the East Zheshang Securities in November due to the lack of sufficient independence in some care and shipping fees is largely less than the standards of industry.

In March 2024, corporate social responsibility issued instructions to restructure industry to increase their competitiveness and build global investment banks by 2035.

At least six integration plans have been launched since then. Late last year, Guotai Junan Securities and Haitong Securities announced the merger of 103 billion yuan to create the largest mediation in China.

On Friday, Chinese media reported that the new entity will be called GuoTai Haitong.

Last month, Reuters reported that the state -owned country -owned company will merge with China Galaxy Securities, which were rejected by both companies.

The deals that have been announced since late 2023 represented about 20 percent of the total assets of the sector as of the end of June 2024, according to S&P estimates.