In Depth: Why China Wants Brokerages to Merge and Why It Won’t Be Easy

China’s brokerage sector looks set for another round of mergers and restructuring after the Central Financial Work Conference in October vowed to “foster first-class investment banks and institutions” and the top securities regulator pledged support for firms to improve their competitiveness.

The conference, which is held twice a decade to decide on policies for the development of the financial sector, pledged to boost the high-quality development of the industry. That included supporting “large state-owned financial institutions in becoming stronger and better, playing a major role in serving the real economy and being a cornerstone for financial stability,” according to the official readout of the meeting. Market access and regulatory requirements for small and midsize financial institutions would be tightened, it said.