Guosen Securities Co Ltd

An analysis of securities firms' operations in the first half of 2026 recently issued by the Securities Association of China shows that 150 securities firms achieved operating revenue of 329.81 billion yuan and net profit of 138.664 billion yuan, up 31.38% and 23.50% year on year respectively, with 136 firms profitable and 14 loss-making. Revenue from securities brokerage business reached 117.6 billion yuan, up 53.90% year on year, surpassing proprietary trading revenue of 113.097 billion yuan to regain its position as the industry's largest revenue source, but the high growth was mainly driven by average daily A-share turnover of 2.74 trillion yuan, up 96.90% year on year. Over the same period, the industry-wide average net commission rate for agency trading of securities fell to 0.0171%. Competition for new accounts is particularly intense. Datong Securities offered a VIP commission rate of 0.00691% for Shanghai and Shenzhen stocks in its official livestream, while Guosen Securities and Zhongtai Securities quoted all-in rates for new accounts of 0.00841% and 0.0085% respectively, and many institutions have already cut new-account rates below 0.01%. Xu Kang, chief financial industry analyst at Huachuang Securities, estimates that actual net rates on the institutional side mostly range from 0.015% to 0.02%, while nominal net commission rates for ordinary retail clients mostly remain around 0.025%. A person in charge of a securities firm branch told Jiemian News that once taxes, fees and operating costs are included, attracting customers at rates persistently below cost is not sustainable. To cope with the price war, institutions such as Guolian Minsheng Securities are pushing to transform traditional brokerage business into comprehensive wealth management. In the first half, 42 A-share listed securities firms recorded net fee income from brokerage business of 97.843 billion yuan, up 54.2% year on year, of which income from distribution of financial products was 10.287 billion yuan, up 84.75% year on year.