330000 securities practitioners fell for three years! Insurance agency increased sharply, investment consulting increased 14 times in 10 years

category:Finance
 330000 securities practitioners fell for three years! Insurance agency increased sharply, investment consulting increased 14 times in 10 years


The number of insurance agents has increased by 1203 in recent two months, exceeding the total increase of 1169 in the past five years (2015-2019). Up to now, there are more than 100 insurance agents in 16 securities companies and more than 200 in 7 securities companies. Among the top 20 securities companies, the number of insurance agents increased in 19, with CICC having the largest increase. The number of insurance agents increased by 151 to 256 from 105 at the end of 2019. In the top 20, the only decline in the number of insurance agents is GF Securities. The number of insurance agents decreased by 13, but the ranking fell 8 places to 11.

In terms of the number of insurance agents, CITIC Securities, CITIC construction investment, Haitong Securities, Huatai united and CICC were among the top five securities companies.

This year, the largest increase in the number of investment advisory posts, the largest decrease in brokerage positions. At the end of 2010, the number of investment advisers of securities companies was only 3882, which is now 59911, an increase of 14.4 times in 10 years. In contrast, the number of brokers of securities companies has declined for three consecutive years. At present, it has decreased by 23611 people compared with the peak at the end of 2017, with a decrease rate of 26.12%. In addition, the number of brokers has been declining for more than 10 years, from 12333 at the end of 2010 to 718 at present.

(number of securities practitioners in recent years; data source: China Securities Association, wind)

From the perspective of securities companies, Guoxin Securities, Guangfa Securities, Guotai Junan and CITIC Securities ranked among the top four with over 10000 people. Among them, Guoxin Securities and CITIC Securities increased by 1566 and 1453 respectively, both breaking through the scale of 10000 people this year, ranking up 4 and 5 places respectively. The number of employees of GF Securities and Guotai Junan both exceeded 10000, of which the number of GF Securities increased slightly by 263, ranking No. 2 unchanged, while Guotai Junan only dropped by 78, but the ranking fell from the first to the third.

(top 20 securities practitioners and related changes; data source: China Securities Association, wind)

On the whole, the top 20 securities companies with a relatively stable number of employees. Only Huafu securities was the new top 20 securities companies, and its number of employees increased by 244, ranking No. 20 from 22 at the end of last year. Among the top 20, Shenwan Hongyuan securities saw the largest decline in the number of employees, with 1190 employees reduced, ranking down 3 places to the 10th; in addition, Haitong Securities also fell 3 places, with 412 employees.

(number of employees in various positions in the securities industry; data source: China Securities Association, wind)

According to the data of China Securities Association, of the current 332000 securities practitioners, 194000 people, or more than 58% of them, are engaged in general securities business; the number of securities brokers and Investment Consultants is in the second and third place, with about 60000 employees, 66773 and 59911 respectively; the positions of sponsor representative, analyst and investment sponsor are all in the scale of thousands, reaching 5535 respectively There were 3477 and 1463 employees, and the lowest number of employees was brokerage marketing posts, with only 718.

(changes in the number of employees in various positions during the year; data sources: China Securities Association and wind)

Specifically, the number of investment consultants and recommendation representatives increased by 4562 and 1729, and the number of analysts increased by 93; the number of securities brokers and general securities business personnel decreased by 7706 and 4003, respectively; the number of investment sponsors and brokerage business marketing personnel decreased by 646 and 203.

The number of insurance agents increased in recent two months, exceeding the previous five years

Among the changes in the number of employees in various positions of securities companies, the most noticeable one recently is the so-called golden collar insurance agency post, which has increased by 1203 in the past two months, exceeding the increase of 1169 employees in the past five years (2015-2019).

According to the changes of each month in 2020, the number of insurance agents increased by 466 from January to September, 493 in October, more than the total growth of the first three quarters, and reached a new high in November with an increase of 710. A total of 1203 people have increased in the past two months, exceeding the total growth of 1169 people from 2015 to 2019.

(top 20 insurance agents of securities companies and related changes; data source: China Securities Association, wind)

Among the top 20 securities companies, 19 have increased the number of insurance agents this year, the largest increase is CICC, whose number of insurance agents has increased by 151 to 256 from 105 at the end of 2019, ranking up 6 places to No. 5. In addition, the number of insurance agents of CITIC Securities, Minsheng securities, Haitong Securities and China Securities construction investment increased by more than 100.

Among the top securities companies, GF Securities was the only one in the top 20 with the largest decline in the number of insurance agents. The number of insurance agents decreased by only 13, but the ranking dropped by 8 places, falling from the third place to the top 10 to 11 of the list.

The recent increase in the number of insurance agents of major securities companies is mainly due to the changes in relevant regulatory rules in June this year and the resulting changes in the form of securities firms investment banking business.

On June 12, 2020, in order to coordinate with the implementation of the new securities law and the reform of the gem registration system, and further standardize the business activities of securities issuance and listing recommendation, China Securities Regulatory Commission revised the administrative measures for securities issuance and listing recommendation business. Among them, the two important conditions for an individual to apply for the qualification of insurance agency as Project Co organizer and pass the insurance agent examination are cancelled and replaced by non admittance level evaluation test.

He Nanye, an investment bank personage, told the associated press that the amendment of the new recommendation method gives securities investment banks more independent choice space; it puts forward more detailed and strict requirements on the internal process, risk control and management system of securities investment bank projects; in terms of joint recommendation, as long as there is no conflict of interest and full disclosure, it can not co sponsor. On the whole, the new sponsor management method is more in line with the market reality, gives more autonomy to securities investment banks, and puts forward higher requirements for the risk management of securities investment banks, which is conducive to the steady development of the whole industry of investment banks.

The number of investment advisers has increased by more than 14 times in 10 years, and the brokerage posts have shrunk again

(trend of the number of investment advisers of securities companies since the end of 2010; data sources: China Securities Association, wind)

The increase in the number of investment advisers this year is in line with the growth rate in the past 10 years. At the end of 2010, the number of investment advisers of securities companies was only 3882. As of December 2, the number of investment advisers was 59911, an increase of 14.4 times.

(top 10 investment advisers of securities companies and related changes; data source: China Securities Association, wind)

According to the latest ranking of investment advisers, GF Securities ranked first in both times; the number of investment advisers in the top ten securities companies increased, with Guotai Junan increasing by 567, ranking up from 2 to 3; China Securities Construction Investment Co., Ltd. increased by only 50, ranking down from 2 to 4; the rest of the securities companies changed within 1 place.

Compared with the sharp increase in the number of investment advisers, the number of brokers in securities companies has declined for the third consecutive year this year. From the end of 2010 to the end of 2017, the number of brokers increased rapidly, from 25265 at the end of 2010 to 90384 at the end of 2017, an increase of about 2.6 times. Since the end of 2017, the number of brokers has declined for three consecutive years, and the number of brokers has decreased by 23611, or 26.12%, compared with the end of 2017.

Judging from the current ranking of the number of securities dealers, Haitong Securities and Founder Securities ranked first and second, with 3974 and 3091 brokers respectively, far ahead of other securities companies.

(top 20 brokers and related changes; data source: China Securities Association, wind)

In 2020, among the top 20 brokers, a total of 17 securities firms will have a decline in the number of brokers, while the number of brokers of Kyushu securities, Anxin securities and Hualin securities will increase, and the increase is not significant. During the year, Shenwan Hongyuan was the largest broker with a decrease of 1043, followed by Haitong Securities and Founder Securities, the top two brokers, with 628 and 386 respectively.

Another job associated with brokerage business is brokerage marketing, which has been on a downward trend in recent 10 years. At the end of 2010, there were 12333 people engaged in brokerage marketing in the securities industry. As of December 2, there were only 718 people in this position.

(trend of the number of brokerage marketing personnel of securities companies since the end of 2010; data source: China Securities Association, wind)

On the other hand, according to wind data, the number of brokerage business departments has increased steadily in recent 10 years, from 4630 at the end of 2010 to 11703 at the end of 2019.

According to a business director of the Northwest Branch of Dongfang Fortune Securities, brokers in the whole industry will gradually decrease or even disappear, and the brokerage business will eventually be handed over to the Internet.

In the view of Mr. Cheng, a senior financial commentator, brokers are the product of the era of brokerage business of securities companies. Its function is mainly marketing rather than service. At that time, the main source of income of securities companies was trading commission. Broker marketing brought customers, customer transactions generated Commission, and brokers obtained income through Commission sharing. With the continuous decline of trading commission rate of securities companies, the brokerage business of securities companies is forced to turn to wealth management in an all-round way, that is to say, the income mode is changed from channel charging to wealth management income (at present, it is realized through the sale of wealth management products, and in the future, it will be realized through investment advisory service fees).

In this irresistible wealth management transformation competition, vigorously promoting the investment advisory service is the key field of the securities industry, and investment consulting talents naturally become an indispensable element.

According to China settlement data, as of October 2020, the number of investors in China is about 175 million, while the number of investment advisers in the securities industry is less than 60000. According to the data, each investment adviser needs to cover more than 2900 customers, far higher than the service limit of investment advisers.

According to the Research Report on human resource management of securities industry in 2019 released by the China Securities Association in August, in the future, under the background of emphasizing the professional ability of investment banks, the competitiveness of securities companies will gradually change from licensing to the direction of wealth management, investment banking, financial technology, research and other professional capabilities. The comprehensive, scientific and international customer-oriented is the transformation direction of the industry consensus. I believe this kind of transformation Talent will be more and more popular.

Source: CFA editor in charge: Zhong Qiming_ NF5619