China’s US$1.6 trillion brokerage industry braces for more pain as authorities frown at high commissions, generous compensation

  • 📰 staronline
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 75%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

A tepid economic recovery and a brutal stock market sell-off could inflict further damage to the financials of the 11 trillion yuan sector.

Chinese brokerage firms are bracing for more pain as a tepid economic recovery and a brutal stock market sell-off could inflict further damage to the financials of the 11 trillion yuan sector. These concerns swirl even as a wave of job cuts and shutdowns has whipsawed the sector in the year to date.

Do you have questions about the biggest topics and trends from around the world? Get the answers with, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. “It’s a highly competitive industry and if you cannot meet the company’s target by the end of the year, it will be time for you to leave,” said Dai Ming, a fund manager at Huichen Asset Management in Shanghai. “That’s how the rules of the brokerage industry play. Given the recent performance of the stock markets, we may see more such cases [of lay-offs].”

Analysts say commission rates for institutional investors like mutual funds could potentially be cut, probably in response to the State Council’s guideline in September that encouraged brokerages and mutual funds to further cut service fees.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China, S. Korea agree to strengthen talks on chip industryChina, S. Korea agree to strengthen talks on chip industry FMTNews FMTBusiness
Source: fmtoday - 🏆 5. / 72 Read more »