The results of the brokerage industry's annual performance review have been published.
On July 24, it was learned that the China Securities Regulatory Commission (CSRC) recently released the 2026 classification evaluation results to securities firms.
Overall, the 2026 evaluation included 106 participating entities, with 44 subsidiaries consolidated into their parent companies for the rating. The rating distribution followed historical proportions, with 53 companies in Category A, 42 in Category B, and 11 in Category C. Among Category A firms, 14 achieved the top AA grade.
It is understood that the proportion of securities firms in each category has remained broadly stable in recent years, with Category A, B, and C firms accounting for approximately 50%, 40%, and 10% of the total, respectively. AA-grade firms represent about 25% of all Category A companies.
A new special bonus has been added this year to promote securities firm mergers and acquisitions.
Sources indicate that most special work indicators for this year remain consistent with the 2025 arrangements to maintain industry stability, with a few adjustments made based on current market conditions. Overall, this year's evaluation reflects four key regulatory priorities.
First, it emphasizes promoting functional performance. The evaluation continues to guide securities firms in voluntarily taking responsibility for stabilizing and invigorating the market, strengthening the role of market stabilization. It sets indicators related to the function of expert think tanks, providing liquidity support through market-making activities, and share buybacks and dividends by listed securities firms. The evaluation also guides firms to increase resource allocation around the "five key areas" of finance, maintaining a special bonus for this for the second consecutive year. It encourages support for private enterprises, continuing special bonuses for underwriting private enterprise bonds and creating credit protection tools. Additionally, it continues the special evaluation for fulfilling social responsibilities, guiding firms to actively serve rural revitalization and coordinated development, and participate in public welfare.
Second, it highlights enhancing professional capabilities. A new special bonus has been added to promote mergers and acquisitions among securities firms, guiding the industry to grow stronger through market-based means and facilitating efficient and stable integration. The evaluation continues special bonuses for investment banking quality assessment and support for listed company mergers and acquisitions, guiding firms to strengthen their investment banking expertise and serve as effective "service providers" for direct financing and "gatekeepers" for the capital market. It also continues the special evaluation for participating in the Beijing Stock Exchange market reform, guiding the industry to provide quality financial services for small and medium-sized enterprises.
Third, it focuses on upholding compliance底线. On one hand, the regulatory approach remains strict, comprehensively including in the evaluation scope securities firms and their branches, domestic and overseas subsidiaries, as well as directors, supervisors, senior management, branch heads, and key business personnel. It also covers administrative penalties, regulatory measures, self-regulatory actions, applications for administrative law enforcement undertakings, and advance compensation, sending a clear signal for enhanced comprehensive compliance and risk control. On the other hand, for firms with weaker compliance and risk control capabilities, especially those with significant issues or risks, it emphasizes overall substantive judgment, fully applying evaluation rules such as the "Risk Management Capability Evaluation Indicators and Standards" to ensure all necessary deductions are made. Concurrently, it continues to strengthen supervision over practitioners, imposing stricter penalty points for violations such as illegal stock trading by directors, supervisors, senior management, branch heads, and key business personnel, as well as illegal asset management and participation in off-balance-sheet financing, urging companies to improve their personnel management mechanisms.
Fourth, it aims to cultivate a healthy industry ecosystem. The evaluation continues the special assessment of industry cultural practices, guiding the industry to embrace "Five Musts and Five Must-Nots" in Chinese-style financial culture. It also strengthens supervision over clean and honest professional conduct, deducting points from companies with frequent incidents of bribery among practitioners, or where key personnel face criminal penalties or have been placed under compulsory measures, and revoking their bonus for industry culture building. It encourages companies to proactively identify, handle, and effectively rectify issues. For the third consecutive year, a special indicator for stable compensation is included, guiding securities firms to establish sound long-term incentive and restraint mechanisms.
The evaluation period runs from May 1 of the previous year to April 30 of the current year.
Securities firm classification evaluations are conducted annually, based on risk management capabilities and ongoing compliance status, combined with business development and functional performance, to determine the category. The evaluation period runs from May 1 of the previous year to April 30 of the current year.
In August 2025, to implement the "1+N" policy documents for preventing risks, strengthening regulation, and promoting high-quality development in the capital market, the CSRC revised the "Securities Company Classification Evaluation Regulations," emphasizing the orientation of promoting functional performance and supporting differentiated development and specialized operations for small and medium-sized institutions. This year's evaluation is the second under the new regulations.
The classification evaluation indicators primarily include four categories: risk management capabilities, ongoing compliance status, business development, and special work. The add/deduct point scenarios and values for the first three categories are mainly defined by the regulations and remain broadly stable. The special work indicators can be dynamically adjusted based on current regulatory priorities, with new indicators added when necessary to reflect regulatory guidance.
It is understood that in the next steps, the relevant CSRC departments will focus on interpreting the 2026 securities firm classification evaluation results. Through special training sessions and other methods, they will inform local CSRC bureaus and industry institutions about the evaluation's guidance and criteria, further enhancing transparency. They will also continuously track the implementation effect of the classification evaluation and adjust evaluation indicators and standards as the market evolves, better leveraging the "commanding role" of the classification evaluation.
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