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BIZCHINA / Center
Securities dealers vying for brokerage business
By Dai Yan (chinadaily.com.cn)
Updated: 2007-08-14 17:00
The red-hot mainland stock markets have experienced fierce competition
among securities companies in the brokerage business, as their rankings
changed every month during the first seven months of 2007, according to
China Securities News.
According to statistics from the Shanghai Stock Exchange, the top ten
securities dealers in terms of brokerage business in January were Galaxy,
Guotai Junan, Shenyin & Wanguo, Haitong, Guosen, GF, China Securities,
China Merchants Securities, CITIC Securities, and Huatai.
However, in July the rankings became Guotai Junan, Galaxy, Haitong,
Shenyin & Wanguo, Guosen, Huatai, GF, China Securities, China Jianyin and
China Merchants Securities.
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Huatai's new account openings far exceeded the average, thanks to its
sales assessment system, said vice president Sun Hanlin. The company
makes new client numbers a key assessment index for sales staff and
managers, raising their salaries based on performance.
Service is key to securities dealers in competition, according to a
source from Huatai. Huatai and China Merchants have both set up special
outlets for institutional investors, providing comprehensive dealing and
financing consulting services.
Securities companies also cooperated with banks to provide value-added
services for clients. For example, Guotai Junan has introduced co-branded
cards with China Merchants Bank and the Industrial and Commercial Bank of
China respectively.
Commission rates were up about 0.02 percent this year, according to a
securities company in Shanghai. The minimum commission rate rose to 0.18
percent from below 0.1 percent. Most investors do not care about
commission increase, because they receive high returns from the bullish
market, said a sales manager of China Merchants Securities (Shanghai).
Commission rate increases will be a short-term trend, as institutional
investors invest more, said an analyst of Shenyin & Wanguo Securities
Research & Consulting. Securities dealers’ commissions income will
reach 134 billion yuan (US$17.66 billion) this year, and 144.1 billion
and 146.8 billion respectively in 2008 and 2009, according to analysis
from Shenyin & Wanguo.
(For more biz stories, please visit Industry Updates)
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