Driven by a steady upward trend in the A-share market and persistently high trading activity in the first half of 2026, the brokerage sector has experienced a substantial rebound in earnings. Data reveals that the combined total revenue and net profit attributable to shareholders of 43 listed brokers surged 44% and 49% year-on-year, respectively, signaling a robust overall recovery in profitability. However, a closer look at individual business lines shows clear divergence, with brokerage and margin financing operations performing well, while proprietary trading and investment banking results varied, leading to an expanding gap between institutions.

Following its merger, Guotai Haitan has broken through strongly, closing in on the industry leader, whereas some mid-to-small cap brokers are facing performance pressure, intensifying the industry’s "Matthew effect." Analysts suggest that while short-term market conditions dictate earnings elasticity, long-term industry rankings will ultimately be determined by factors such as investment research capabilities, risk control systems, technological empowerment, and governance efficiency. Looking ahead, the industry is likely to move towards differentiated and staggered development paths for brokers of various sizes.

Revenue and Net Profit Surge Over 40% Year-on-Year

The brokerage sector experienced a broad recovery in the first half, with impressive total revenue and net profit figures. According to Choice data, the 43 listed brokers achieved combined total revenue of RMB 364.71 billion, a 44% increase from RMB 253.001 billion in the same period last year. Their combined net profit attributable to shareholders reached RMB 155.37 billion, up 49% from RMB 104.226 billion in the prior year.

Examining individual firms, the industry's "Matthew effect" is prominent. The leading positions have remained generally stable, but competitive pressure within the top tier is significant. Ten listed brokers achieved total revenue exceeding RMB 10 billion, with a noticeable gap between tiers; only two firms surpassed RMB 40 billion in revenue. Meanwhile, five brokers reported net profits attributable to shareholders exceeding RMB 10 billion.

CITIC Securities, the reigning "industry leader," maintained steady growth, with total revenue climbing 50% year-on-year to RMB 49.692 billion and net profit attributable to shareholders rising 69.6% to RMB 23.343 billion. However, the newly merged Guotai Haitan has emerged as its formidable competitor. Guotai Haitan's total revenue soared nearly 98% to RMB 47.163 billion, while its net profit attributable to shareholders increased by almost 29% to RMB 20.26 billion. The performance gap between the industry's top two players has notably narrowed, and they have simultaneously created a more distinct lead over the third and fourth-ranked firms.

Huatai Securities reported total revenue of RMB 23.658 billion and net profit of RMB 11.692 billion, with growth rates of approximately 46% and 55%, respectively. GF Securities recorded total revenue close to RMB 26.9 billion, ranking third, with both revenue and net profit growth exceeding 70%. Its net profit attributable to shareholders was RMB 11.652 billion, only marginally behind Huatai Securities.

Performance among the larger brokers also showed divergence. China Merchants Securities saw both total revenue and net profit attributable to shareholders surge over 100% year-on-year, significantly boosting its industry ranking. CICC and CSC Financial experienced steady growth. Shenwan Hongyuan Group's total revenue grew approximately 18%, while net profit attributable to shareholders rose near 34%. China Galaxy Securities saw gains exceeding 20% in both revenue and profit. Guosen Securities reported a 13.4% increase in total revenue to RMB 12.559 billion, but net profit attributable to shareholders grew only 6.79% to RMB 5.732 billion, significantly lagging the industry average and causing its ranking to slip.

The performance divergence is more acute among mid-to-small cap brokers. Some institutions saw explosive growth in net profit: Tianfeng Securities (subject to rights protection), benefiting from a low base, saw net profit attributable to shareholders surge 549% to RMB 204 million. Zhongtai Securities grew 146% to RMB 1.752 billion, Caida Securities rose 105% to RMB 766 million, Huaan Securities increased 103% to RMB 2.097 billion, Huaxi Securities grew nearly 90% to RMB 972 million, and Changjiang Securities rose almost 84% to RMB 3.192 billion.

Conversely, some brokers grappled with sluggish or declining performance. Hongta Securities saw total revenue drop 14% to RMB 1.023 billion, with net profit attributable to shareholders falling 24% to RMB 510 million. Great Wall Securities experienced a 0.53% revenue decrease to RMB 2.844 billion, while net profit saw a marginal 0.69% increase to RMB 1.394 billion. Hualin Securities saw revenue grow but profits fall; total revenue inched up 1.67% to RMB 849 million, whereas net profit attributable to shareholders declined 23.32% to RMB 258 million. Guosheng Securities, Shanxi Securities, Pacific Securities, Dongxing Securities, and Guoyuan Securities also recorded growth rates in revenue and profit that were on the lower end of the industry spectrum.

Tian Lihui, Dean of the Financial Development Research Institute at Nankai University, analyzed that the widespread profit increase among brokers in the first half stemmed from the market's trading recovery, margin financing expansion, and the release of proprietary trading elasticity. The significant performance divergence acts as a stress test for broker balance sheet structures and business resilience. Leading institutions leverage their capital strength, client networks, and license synergies to consolidate their advantage, exemplifying the "strong get stronger" dynamic. Meanwhile, some mid-to-small brokers face pressure due to concentrated proprietary trading positions and volatile investment banking projects, while others achieve rapid growth through specialized business layouts. This implies that beyond the market's beta effect, business structure and risk control capabilities are the core determinants of a broker's earnings stability.

Divergent Fortunes Across Core Business Lines

At the subdivided business level, the 43 listed brokers recorded net revenues of RMB 98.448 billion from brokerage, RMB 168.733 billion from proprietary trading, RMB 30.338 billion from credit, RMB 19.422 billion from investment banking, and RMB 27.473 billion from asset management in the first half. Compared with the 42 listed brokers' figures from the same period last year (excluding Guosheng Securities’ data for brokerage, investment banking, and asset management), the net revenues for these five business lines were RMB 63.454 billion, RMB 112.519 billion, RMB 19.898 billion, RMB 15.53 billion, and RMB 21.195 billion, respectively. Multiple business lines improved concurrently, with brokerage and proprietary trading, the two core income sources, rebounding significantly and acting as major pillars supporting overall performance.

Industry-wide, net brokerage business revenue achieved positive growth across the board. Specifically, the merged Guotai Haitan saw its net brokerage revenue leap 73% year-on-year to RMB 9.942 billion, overtaking CITIC Securities to claim the top spot in this segment. CITIC Securities recorded a near 54% increase in net brokerage revenue, reaching RMB 9.856 billion. They were followed by GF Securities and Huatai Securities, with net revenues of RMB 6.555 billion and RMB 6.264 billion respectively, both growing at around 67%. The tier gap remains substantial: eight leading brokers generated over RMB 5 billion in net brokerage revenue, while 20 brokers earned less than RMB 1 billion from this business.

Meanwhile, mid-to-small brokers like Western Securities, First Capital, Tianfeng Securities, Guolian Minsheng, and Sinolink Securities posted impressive growth rates in net brokerage revenue, all exceeding 50%.

Brokerage and proprietary trading heavily depend on market conditions: brokerage relies on market trading activity, competing on channel capabilities and client resources; proprietary trading involves investing the firm's own capital, primarily in equities, testing the institution's active management skills and leading to significant performance variability. In the first half, six leading brokers saw net proprietary trading revenue exceed RMB 10 billion. CITIC Securities and Haitong Securities led with RMB 26.927 billion and RMB 23.851 billion, growing 41% and 155% respectively. Third-placed GF Securities saw this revenue surge 141% to RMB 13.14 billion, while China Merchants Securities recorded a 213% jump to RMB 12.914 billion.

However, internal divergence is stark, with 17 listed brokers reporting net proprietary trading revenue of no more than RMB 1 billion. Notably, Guosheng Securities swung to a loss of RMB 20 million in this business, compared with a net income of RMB 166 million in the prior year. Hualin Securities saw its proprietary trading net revenue plummet over 70% from RMB 222 million to RMB 66 million. Pacific Securities saw a 27% decline to RMB 146 million. Hongta Securities, Tianfeng Securities, and Shanxi Securities also experienced declines. Additionally, Sinolink Securities saw a 26% drop to RMB 880 million, Guosen Securities fell over 20%, and Shenwan Hongyuan Group and Guolian Minsheng saw slight declines.

In investment banking, CITIC Securities, CICC, Guotai Haitan, and Huatai Securities recorded net revenues of RMB 3.023 billion, RMB 2.931 billion, RMB 2.224 billion, and RMB 1.541 billion respectively, representing year-on-year growth of 44%, 76%, 60%, and 32%. Conversely, CSC Financial's investment banking net revenue saw a slight retreat to RMB 1.113 billion. Sinolink Securities saw its investment banking net revenue jump over 60% to RMB 639 million, climbing to sixth place in the industry. China Merchants Securities recorded a 50% increase to RMB 604 million, ranking eighth. The trend of the strong getting stronger continues in investment banking; five leading brokers surpassed RMB 1 billion in related net revenue, but 15 listed brokers earned less than RMB 100 million.

Divergence among mid-to-small brokers is pronounced in this segment. Huaan Securities, Hongta Securities, and Sealand Securities saw their investment banking net revenue decline by nearly 70%. Dongxing Securities, First Capital, Founder Securities, Guoyuan Securities, Tianfeng Securities, and BOC International all experienced year-on-year declines exceeding 30%. Although Hualin Securities and Zhongyuan Securities reported high growth rates, their business scale is minimal, with net revenues under RMB 30 million, confirming that advantages in investment banking remain concentrated among the top-tier brokers.

Tian Lihui believes that brokerage business growth is primarily driven by increased market turnover rather than improved commission rates. The divergence in proprietary trading directly reflects differences in investment capabilities and risk appetites. Credit business benefits from the recovery in capital intermediary demand, while investment banking performance is influenced by policy pacing and project pipelines. Liu Youhua, Research Director at PaiPaiWan Wealth, told reporters that active market trading in the first half boosted brokerage and credit businesses, making proprietary trading a key source of earnings elasticity, allowing most brokers to fully benefit from the market upswing.

The industry's "Matthew effect" persists, with leading brokers leveraging their capital strength and multi-business synergies to maintain leading profit scales. Mid-to-small brokers show a polarizing trend; some achieve higher growth through regional resources, fixed-income proprietary trading, or specialized wealth management, but their lower profit bases make them more susceptible to proprietary trading volatility. Market dividends tend to flow towards institutions with stronger research and risk control capabilities, thereby widening the performance gap.

Industry Shifts Towards Differentiated Development

Commenting on the brokers' overall first-half performance, Wu Maxuhan, a non-bank financial analyst at CSC Financial's Research and Development Department, analyzed that the substantial profit growth in the first half of 2026 was largely due to the industry beta benefits from active market trading. Proprietary trading and brokerage were the core pillars of growth, with the industry's own business structure optimization contributing relatively less. Against the backdrop of broad industry gains, institutional performance divergence is mainly determined by three core factors: proprietary trading elasticity, leverage and return on equity levels, and wealth management operational capabilities. Mid-to-small brokers, leveraging their low base and high elasticity, achieved stage-leading growth rates.

Wu further noted that the brokerage industry is in a critical transition period. Earnings growth is highly dependent on investment business, which is gradually forming a dual-engine model of "market beta returns and tech equity investments." Combined with resources concentrating among top players and industry-wide commission adjustments, brokers exhibit a characteristic of "high earnings growth, but valuation pressure," leaving the quality and long-term sustainability of growth yet to be tested by the market.

Due to differences in resource endowments and operational capabilities, subdivided business performance varies significantly, and the gap between performance tiers continues to widen. Brokers of different sizes are in urgent need of precise positioning and differentiated competitive development paths. Tian Lihui pointed out that large brokers should strengthen their platform and comprehensive advantages, smoothing cyclical fluctuations via full business chain synergies. Mid-sized brokers need to develop flagship businesses in selected areas to avoid being "small but complete." Small brokers must pursue a boutique, differentiated path, building irreplaceability in M&A, wealth management, or regional market penetration, rather than just chasing market beta.

"Ultimately, China's brokerage industry is undergoing a profound supply-side cleanup," Tian Lihui asserted. Market beta can bring short-term collective prosperity, but what truly decides the long-term landscape is the internal cultivation of investment research capabilities, risk control systems, technological empowerment, and governance efficiency. Divergence is not a problem; it's a sign of the market's normal screening mechanism at work. Brokers capable of weathering cycles will inevitably be those that prepared for downturns during good times, achieved diversified business structures, and continuously invested in capacity building.

"The root of business divergence lies in institutional attributes and internal capabilities. Brokerage and credit are beta-type businesses, where market recovery can lift industry-wide earnings. Proprietary trading relies heavily on research and risk control strength. Investment banking resources continue to concentrate among top players, with the size of project pipelines directly causing performance differences," Liu Youhua said regarding development paths. Leading brokers can leverage capital and full-license advantages to expand comprehensive services, optimize proprietary trading models, and consolidate barriers in capital-heavy businesses. Mid-sized brokers could focus on regional industries or niche tracks like BSE listings to establish specialized brands. Small and mid-sized brokers should prioritize light-capital businesses, strictly control high-risk directional proprietary trading, and leverage local resources to develop wealth distribution and regional services, pursuing a strategy of differentiated competition.