As the third-quarter financial reports have been released, the operational performance of publicly listed securities firms unfolds, revealing the dynamics of their business segmentsNotably, aside from their proprietary trading operations, the asset management business has made a significant contribution to the overall performance in the third quarter.

In a broader perspective, looking at the first three quarters of this year, a total of 43 publicly listed securities firms recorded net income from asset management fees amounting to ¥33.77 billion (approximately $4.73 billion), exhibiting a slight decline of 2.51% year-on-yearThis decline, however, showcases impressive resilience against the backdrop of a challenging marketCitic Securities, GF Securities, and Huatai Securities topped the rankings with net revenues of ¥7.48 billion, ¥5.08 billion, and ¥3.03 billion, respectively

Together, the top ten firms accumulated a net income of ¥25.25 billion, accounting for 74.76% of the total revenue from asset managementInterestingly, 25 firms reported a positive growth trajectory in this segment, with Nanjing Securities, Caida Securities, Southwest Securities, and Chuangxin Securities experiencing a dramatic surge in income, even seeing their figures double.

A closer look at the growth rates of asset management income reveals that smaller securities firms have outperformed their larger counterparts significantlyNanjing Securities reported a net income from asset management fees of ¥63 million for the first three quarters, marking an astonishing year-on-year increase of 217.29%, positioning them as the top performer in this regardOther firms, such as Caida Securities and Southwest Securities, also surpassed the 100% growth markGuosen Securities and Western Securities recorded relevant income of ¥634 million and ¥126 million, respectively, both exceeding 80% growth, with Guosen being the only large-scale firm among the rapidly growing securities brokers.

When examining the revenue contributions from asset management, Chuangxin Securities stood out with the highest contribution ratio of 40.38%. Their third-quarter report indicates that the company achieved revenues of ¥1.85 billion, reflecting a year-on-year growth of 42.81%, with a net profit attributable to shareholders reaching ¥750 million, showing a 63.10% increase

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Chuangxin attributed this growth primarily to the increase in net income from asset management fees and the overall growth in returns from financial instrument investments.

Chuangxin Securities introduced a new strategy in its asset management business, elaborately revealed in its half-year report, focusing on optimizing the structure of its existing credit bond strategy productsIt also laid out successful plans in multiple areas, including interest rate bond strategies, "bond+ equity" strategies, equities strategies, and asset management advisory productsTheir research capabilities related to bond and equity assets have significantly improved due to their proactive approach in tracking market changes and swiftly adjusting their investment strategies, effectively seizing market opportunitiesAdditionally, they continue to deepen and broaden partnerships with state-owned banks, joint-stock banks, local commercial banks, top-tier third-party fund sales organizations, and direct investment clients like state-owned enterprises and listed companies.

On another note, Guosen Securities has focused its efforts across four domains

First, they have continued to innovate their strategies, not only capitalizing on their traditional strengths but also launching new strategies linked to gold ("bond+"), as well as enhanced index strategies linked to derivativesSecond, they have refined their market management approach, tailoring expansion and maintenance efforts according to distinct channel characteristics while quickly expanding their clientele in terms of corporate financial servicesThird, Guosen is actively supporting national strategic initiatives, adeptly utilizing public REITs, ABS, and other capital market instruments to provide financing services for real enterprisesLastly, their asset management subsidiary has completed industrial and commercial registration, laying a robust foundation for advancing specialized operations in this segment and achieving high-quality development.

The establishment of specialized asset management subsidiaries marks a notable direction for securities firms to strengthen their asset management operations

Almost a year later, a new player has emerged to join the ranks of asset management subsidiaries in the securities sectorOn October 29, Western Securities announced its plan to invest ¥1 billion in establishing a wholly-owned asset management subsidiary, set to be based in ShanghaiThe company explained that this move would hone in on active management, improve operational efficiency, promote specialized development in asset management, and enhance their market competitiveness and client service capabilities.

To date, 30 securities firms have received approval for their asset management subsidiaries (including those in the preparatory phase). This list includes major players like China International Capital Corporation (CICC), Citic Construction Investment, Huachuang Securities, Dongxing Securities, Guohai Securities, Xingda Securities, Chuangxin Securities, and Huaxin Securities