Recently, the Shanghai Stock Exchange and Shenzhen Stock Exchange separately reported the latest fund market data within the industry. As of the end of September, there were 760 ETFs in the Shanghai market with a total market value of 4,000.311 billion yuan; the Shenzhen market had 555 ETFs with a total market value of 1,625.516 billion yuan. The total scale of ETFs in the Shanghai and Shenzhen markets has exceeded 5.6 trillion yuan, demonstrating strong growth momentum. From the perspective of brokerage business, the competitive landscape of ETF business shows a significant "Matthew Effect." Traditional leading brokerages such as CITIC Securities (600030), China Galaxy (601881), Northeast Securities (000686), and East Money Information continue to firmly occupy the first tier in terms of business scale.

Industry insiders believe that the ETF business has become the core engine for the transformation of brokerage business. It not only contributes substantial transaction and custody revenue but also drives the synergistic development of multiple business lines such as wealth management, institutional services, and market making. Its strategic value has reached a consensus within the industry.

Competitive Landscape Stabilizes; Industry Enters Refinement Stage

The ETF fund markets in Shanghai and Shenzhen maintain a steady development trend. The latest data from the Shanghai and Shenzhen exchanges show that as of the end of September, there were 935 fund products in the Shanghai market with a total asset management scale of 4,088.195 billion yuan. Among them, there were 760 ETFs with a total market value of 4,000.311 billion yuan, an increase of 7.65% from the previous period. The Shenzhen market had 841 fund products with a total asset management scale of 1,663.858 billion yuan. Among them, there were 555 ETFs with a total market value of 1,625.516 billion yuan. As of the end of September, the total ETF scale in the Shanghai and Shenzhen markets reached 5,625.827 billion yuan, achieving steady growth.

From the perspective of brokerage business, the top five brokerages by Shanghai market ETF (non-monetary) turnover (brokerage business, same below) in September were CITIC Securities, Huatai Securities (601688), Guotai Haitong (601211), Huabao Securities, and Oriental Securities (600958), with monthly turnover shares of 11.24%, 11.09%, 9.45%, 6.46%, and 5.92%, respectively. The top five brokerages by Shenzhen market ETF trading value in September were Northeast Securities, East Money Information, Oriental Securities, Soochow Securities (601555), and Founder Securities, consistent with the previous month. Overall, the industry's competitive landscape is stabilizing, and brokerages' ETF businesses are entering a stage of refinement.

Regarding the scale of ETFs held by brokerage businesses, as of the end of September, the top five brokerages by holding scale in the Shanghai market were China Galaxy, Shenwan Hongyuan (000166), Guotai Haitong, CITIC Securities, and China Merchants Securities (600999), with market shares of 22.75%, 16.74%, 8.04%, 6.87%, and 4.74%, respectively. The top five brokerages by ETF holding scale in the Shenzhen market were East Money Information, Oriental Securities, Dongguan Securities, Founder Securities, and Everbright Securities (601788).

Looking further at the trading performance of brokerage branches, the top three branches by Shanghai market ETF turnover in September were Huabao Securities Shanghai Dongdaming Road Branch, CITIC Securities Shenzhen Shennan Middle Road CITIC Building Branch, and Oriental Securities Changshu Lizha Road Securities Branch. For the Shenzhen market, the top three brokerage branches by individual client ETF trading value were Datong Securities Taiyuan Branch, East Money Information Changdu Liangjiang Avenue Branch, and East Money Information Lhasa Dazi District Hufeng Avenue Branch. The top three brokerage branches by institutional client ETF trading value were Northeast Securities Hangzhou Changle Road Branch, Northeast Securities Shanghai Jumen Road Branch, and Oriental Securities Shanghai Songjiang District Huting North Road Branch.

Deeply Embedded in the Transformation and Upgrading Path of Brokerage Business

"The ETF business has become a battleground for the brokerage industry." An industry insider told reporters that the ETF business is deeply embedded in the transformation and upgrading path of brokerage business.

The importance of the ETF business to brokerage business is reflected in multiple aspects. According to industry insiders, first, the ETF business is the core driver for the wealth management transformation of brokerages. The transparent and instrumental nature of ETFs aligns well with the needs of wealth management business transitioning from "seller sales" to "buyer investment advisory." Investment advisors can more easily use ETFs for asset allocation and portfolio management for clients, promoting a business model shift focused on client asset appreciation.

Second, the ETF business is a key source of diversified income for brokerages. The ETF business can effectively link multiple business lines of brokerages. In addition to direct brokerage revenue, it can drive a series of businesses such as custody, settlement, and market making, creating more diverse revenue sources. Particularly, market making business, with the increasing number of ETFs and rising liquidity demands, has become an important service revenue and profit point for brokerages.

Finally, the ETF business helps optimize the client structure and service ecosystem of brokerages. ETFs attract both individual and institutional investors, helping brokerages integrate retail and institutional businesses. Brokerages can serve various clients through ETFs, such as providing investment advisory services for individual clients and offering liquidity support and comprehensive solutions for institutional clients, thereby building a healthier client ecosystem.

Looking ahead, industry insiders stated that competition in the brokerage ETF business may become more intense and complex, shifting from simple scale rankings to a comprehensive contest of integrated service capabilities, ecosystem building capabilities, and strategic foresight. Under the regulatory guidance actively encouraging "long-term money" to enter the market, and with the continuous emergence of innovative products, brokerages need to plan ahead to seize new opportunities brought by innovative products and policies.