China pushes brokerages to help shape stock market narrative
Regulators are moving to tighten oversight of brokerage research, aligning assessment criteria more closely with policy goals
For the first time, Beijing has included the task of “telling China’s stock market narrative well” in its assessment of brokerage research, as it steps up efforts to bolster confidence in domestic equities while curbing capital outflows.
In a new survey for the 2025 cycle, the Securities Association of China – an industry regulator – incorporated brokerage contributions to national strategies and industry development into its evaluation framework.
Research institutes were now required to demonstrate that they had told “the story of China’s stock market well”, according to the state-backed financial media outlet China Securities Journal.
The industry body also called on securities research institutions to strengthen their role as “market think tanks” by producing concrete results in areas such as technology and green finance, according to the report published on Wednesday.
Shortly afterwards, authorities imposed fines totalling more than US$330 million and confiscated illegal gains from three major online brokerages – Longbridge Securities, Tiger Brokers and Futu Holdings – for operating in mainland China without the required licences.