Caitong Securities' Performance Growth Lags Behind Peers; Core Business Revenues Decline Across the Board

Based on the latest public data analysis, the main reasons for Caitong Securities’ lagging performance growth compared to peers can be summarized as follows [1]:

In the first three quarters of 2025, Caitong Securities achieved revenue of 5.063 billion yuan, a year-on-year increase of 13.99%; net profit attributable to shareholders was 2.038 billion yuan, a year-on-year rise of 38.42%. However, among 50 listed securities firms, it ranked 40th in revenue growth rate and 38th in net profit growth rate, far below the industry average. The overall industry growth rates in the same period were 23.87% and 80.20% respectively [1].

Securities proprietary trading revenue decreased by 39.73% year-on-year, which is the largest business segment contributing to the revenue decline [1]. This reflects Caitong Securities’ obvious deficiency in grasping investment directions and failure to accurately capture market opportunities. Although the company mentioned continuing to promote swap convenience investment business, the sharp drop in proprietary trading revenue indicates that its investment capabilities and market judgment need to be improved.

Asset management business revenue decreased by 25.81% year-on-year [1]. Although Caitong Asset Management’s scale reached 296.5 billion yuan, an increase of 1.02 billion yuan compared to the same period last year, its public offering scale shrank. In addition, Caitong Fund’s public offering scale also declined significantly, showing a disadvantaged position in the wealth management competition.

Investment banking business revenue decreased by 22.83% year-on-year [1]. In the first half of the year, it only completed 1 IPO application on the main board of the Shenzhen Stock Exchange, and the bond business also faced challenges. In Zhejiang Province, Caitong Securities’ market ranking dropped from first to second, and its market share was squeezed.

Caitong Securities’ performance shows obvious seasonal volatility characteristics:

• Q1
  : Revenue and net profit attributable to shareholders decreased by 24.16% and 36.52% year-on-year respectively, mainly hit by a -589 million yuan gain from fair value changes [1]
• Q2
  : Performance resumed growth, with revenue and net profit increasing by 16.99% and 68.56% year-on-year respectively (but the base was low)
• Q3
  : Continued recovery growth, with revenue and net profit increasing by 48.58% and 75.10% year-on-year

The severe setback in Q1 performance became an important factor in the lagging annual performance growth rate [1].

Since 2024, Caitong Securities has received 5 regulatory fines, involving multiple areas such as incomplete management mechanisms for over-the-counter derivative business, failure to exercise due diligence in investment banking business, incomplete systems of overseas subsidiaries, and anti-money laundering [1]. These compliance issues not only affect the company’s reputation but may also have indirect impacts on its business operations.

In Zhejiang Province, its traditional advantageous region, Caitong Securities’ market position is challenged. The bond business competition is fierce, and its market ranking dropped from first to second [1], showing the weakening of its regional competitive advantage.

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: Caitong Securities’ lagging performance growth compared to peers is the result of multiple factors, including insufficient proprietary investment capabilities in core businesses, weak growth in asset management scale, declining competitiveness in investment banking business, severe loss from fair value changes in Q1, and frequent compliance issues. To reverse this situation, the company needs to comprehensively improve its investment capabilities, compliance construction, and business innovation.

[1] “Caitong Securities Received 5 Fines This Year: Why Can’t Its Performance Growth Keep Up With Peers?”, Caifuhao/Daily Financial Report, December 26, 2025, (https://caifuhao.eastmoney.com/news/20251226151544071647930)