The China Securities Association recently disclosed that the number of securities brokers in China has dropped by over 73% from early 2018 to early 2025. Analysts believe that this phenomenon reflects the deteriorating market environment, industry competition, structural adjustments, and the transformation of business models.
In the past, our team had over ten brokers, but now we only have three left. Some have retired due to age, while others have found it challenging and transitioned to other roles,” said a representative from a medium-sized brokerage firm in South China, as reported by Caixin on July 11.
According to data from the China Securities Association in July 2025, the number of securities brokers in the industry decreased from 90,500 in early 2018 to 28,800 by the end of 2024, a reduction of over 60,000 in seven years. As of 2025, this downward trend continues, with the latest count of securities brokers standing at only 25,000, marking a sharp decline of around 73%.
Caixin reported that currently, only 10 brokerage firms have over 500 securities brokers, with only Guotai Junan Securities and Founder Securities having more than a thousand brokers each.
Since 2025, 77 brokerage firms have seen a reduction of over a hundred securities brokers each, with firms such as China Merchants Securities losing 463 brokers, Guolian Securities losing 233, and Haitong Securities losing 220. Only 12 brokerage firms reported an increase in broker numbers, but the growth was minimal, with firms like Lianyuan Securities and Bohai Securities adding just two brokers each.
The decrease in the number of securities brokers is the result of various intertwined factors. Firstly, stricter regulatory supervision from the Chinese government has led to numerous penalties related to securities brokers in recent years. Removing securities broker positions can effectively reduce a company’s compliance risks. Many in the industry believe that the exit of securities brokers is an inevitable trend for the sector’s development.
On April 19, 2024, the China Securities Regulatory Commission issued the “Regulations on the Management of Securities Trading Fees for Publicly Offered Securities Investment Funds,” which lowered the commission fee rates and capped the commission distribution ratio. The introduction of new regulations reduced the commission distribution ratio for brokers from 30% to 15%, significantly diminishing the appeal of broker commissions.
In addition to regulatory restrictions, the securities industry in China has been plagued by disorderly competition. Online brokers such as East Money and Tonghuashun have been driving the trend of zero-commission trading, disrupting traditional brokerage profitability models. Many brokerage firms have reduced commissions to below 0.15%, leading to fierce industry competition and a decline in brokerage business. According to Wind data, the average commission rate in the securities industry was around 0.38% in early 2018, dropping to about 0.18% by 2024.
“With the intensifying market competition, decreasing commission rates, brokers who rely on commission earnings have seen a significant decrease in income,” said a senior executive from a large brokerage firm in North China.
While the industry average commission rate has risen to about 0.24% in 2025, for brokers who depend solely on commissions without a base salary, this remains a crucial economic driver for job transitions or relocations.
Other reasons for the decline in industry personnel include the aging workforce and simultaneous retirements. In the late 1990s and early 2000s, brokerage firms relied on brokers stationed in glass booths to interact with clients, assist with trading orders, and explain stock charts. With commission rates as high as 0.35% or even 0.5%, brokers earned significantly higher incomes than the average wages at the time.
However, these industry veterans who witnessed the golden age of the brokerage industry are now retiring. “In our branch, several senior brokers joined the securities industry around 2000 and have now reached retirement age, choosing to retire,” said a branch manager from a brokerage firm in East China.
In conclusion, the sharp decline in the number of securities brokers in China is not due to a single factor but rather a result of multiple factors, including market downturns, fierce industry competition, and the transition of brokerage firms to wealth management services.
The rapid decline of brokers signifies a structural upgrade in the securities industry from a focus on transactions to a focus on services. To ensure stable profitability in the future, brokerage firms need to embrace digitization, innovate products, adopt new service models, and adapt to the evolving landscape of the capital market.