Analysis of the Impact of China Post Securities' Branch Closures on Its Brokerage Business

According to the latest public information, China Post Securities announced the closure of 4 business branches at the start of 2026 (January 7), namely Wuhan Xinhua Road Securities Business Branch, Jiujiang Xunyang Road Securities Business Branch, Xi’an Kaiyuan Road Securities Business Branch, and Shanghai Dongdaming Road Securities Business Branch[1]. This is another major network adjustment by China Post Securities following the closure of 5 branches in December 2024 (Anshan Qianjin Road, Changzhou Beizhi Street, Shenzhen Nanshan Haide 3rd Road, Mianyang Fucheng District, and Weifang Weizhou Road Securities Business Branches)[1].

China Post Securities’ regional layout adjustment reflects the intense competitive pressure it faces in high-quality competitive regions (such as Shanghai and Wuhan). The new management controls operating costs by scaling back offline operations in non-advantageous regions, concentrating resources on more competitive business areas[1].

Since 2025, China Post Securities has been subject to multiple regulatory penalties for compliance issues including failure in investor suitability management, lack of transaction behavior monitoring, and irregular employee management[1]. After the new management took office, integrating compliance risk control fully into business development, promoting precise compliance management, and building a full-chain compliance system have become important tasks. The network adjustment is a necessary measure to support this strategy.

China Post Securities completed intensive personnel adjustments in 2025: the former chairman was transferred in April, Gong Qihua was officially elected chairman and concurrently served as general manager in June, and the former secretary of the board resigned in November, with the newly appointed chief compliance officer Liu Yueping concurrently taking on the role[1]. These adjustments provided organizational support for network optimization.

This closure involves branches in four cities: Wuhan, Jiujiang, Xi’an, and Shanghai, covering key regions including Central China, East China, and Northwest China. Although transition arrangements are in place (Wuhan Xinhua Road Branch will be taken over by Wuhan Zhongbei Road Branch, Jiujiang Xunyang Road Branch will be taken over by Jiangxi Branch, etc.), and clients’ capital accounts and transaction methods remain unchanged, the convenience of services and offline reach capabilities will inevitably be affected[1].

Through branch closures and customer transition, intensive operation of customer resources can be achieved, improving the operating efficiency and service quality of individual branches. Closing branches with high management difficulty and potential risks, and concentrating scattered compliance management resources on core branches, is conducive to building a more efficient compliance system[2][3].

For existing customers who are accustomed to offline services, especially the elderly customer group, branch closures may lead to a decline in service experience, and some customers may switch to other securities brokers. This is a short-term pain that comes with network adjustment.

The contraction of offline outlets means the company needs to strengthen the development of online service capabilities, including APP function optimization, online investment advisory services, and remote business handling, to make up for the gap in offline services.

In 2025, at least 41 securities brokers closed outlets, with a total of 292 business branches reduced, a significant increase compared to 2024 when 36 brokers closed 213 branches[2]. Industrial Securities disclosed 11 closure announcements in 2025, closing a total of 41 branches, making it the broker with the most intensive “streamlining”[2]. Guotai Haitong (33 branches), SDIC Securities (27 branches), Zhongtai Securities (23 branches) and other leading brokers have also joined the closure ranks[2].

Securities brokers’ network adjustments are not simple one-size-fits-all contractions, but rather feature precise layout:

• Closure Logic
  : Regional branches with unsaturated business volume and low operating efficiency are the main targets for closure
• New Establishment Logic
  : Layouts are still being strengthened in economically developed regions and regional wealth management centers[2]

According to industry analysis, the closure of securities brokers’ outlets is mainly driven by the following factors[3]:

• Digital Impact
  : The rise of online securities brokers and third-party platforms has impacted the business development of traditional offline outlets
• Cost Pressure
  : A sharp contradiction exists between the continuous decline in commission rates and high operating costs
• Transformation Demand
  : Resources are tilted towards high-value-added businesses such as investment banking, asset management, and wealth management
• Compliance Risks
  : A large number of outlets breed management loopholes, and under the strict regulatory environment, it is necessary to simplify the management radius

1. Strengthen Customer Communication
   : During the branch closure process, fully inform customers of transition arrangements to ensure service continuity
2. Enhance Online Services
   : Increase investment in financial technology to improve online service capabilities and customer experience
3. Optimize Talent Allocation
   : Reallocate branch heads in conjunction with network adjustments to enhance professional service capabilities
4. Deepen Compliance Construction
   : Embed compliance management into the entire business process to prevent the expansion of compliance risks

From the perspective of industry development trends, securities brokerage branches are shifting from the “quantity expansion” stage to the “quality improvement” stage[2][3]. In the future, securities brokerage outlets will present the following characteristics:

• Regional Deep Cultivation Strategy
  : Focus on specific regions with geographical familiarity and local resources as the core[3]
• Service Model Innovation
  : Carry out multi-dimensional innovations around customer stratification, product ecology, and channel operation[2]
• Online-Offline Integration
  : Focus on optimizing the functions of digital platforms such as APPs online, and optimize outlet layouts offline[2]

Overall, China Post Securities’ branch closures are a proactive adjustment in line with industry trends. In the short term, it may bring challenges such as customer churn and service transition issues, but in the medium to long term, it will help optimize resource allocation, improve operational efficiency, and strengthen compliance management. The key lies in whether the company can seize the adjustment opportunities, accelerate digital transformation and service upgrading, and achieve a successful transition from traditional brokerage business to wealth management business.

[1] Stock Star - “China Post Securities Closes 4 Branches at the Start of the Year, New Management Faces Compliance Challenges After Taking Office” (https://stock.stockstar.com/SS2026011900013416.shtml)

[2] East Money - “Seeking a Breakthrough in Streamlining: Nearly 300 Securities Broker Outlets Closed in a Year, with Intensive Adjustments of Responsible Persons” (https://wap.eastmoney.com/a/202601133617676663.html)

[3] CLS.cn - “Securities Brokers Close Over 100 Outlets Within the Year: Has the Golden Age of Offline Branches Come to an End?” (https://www.cls.cn/detail/2114467)