In the first half of 2026, trading turnover in the A-share market reached a record high, while the bond market followed a slow bull trend with volatile strength. According to parent-company data, the securities industry saw operating revenue rise 32% year-on-year and net profit climb 23%, with listed brokers posting even stronger results. During the period, 44 A-share pure-securities brokers generated combined operating revenue of RMB 375.215 billion, up 44.39% year-on-year, and aggregate net profit attributable to shareholders of RMB 163.434 billion, up 48.86%.
Among the 44 brokers, CITIC Securities led in both revenue and net profit for 2026H1, while Pacific Securities ranked at the bottom on both fronts. China Merchants Securities posted the fastest revenue growth at 108.19%, whereas Hongta Securities saw the steepest revenue decline of 14%. Tianfeng Securities recorded the highest net profit growth at 549.03%, while Hongta Securities suffered the largest net profit drop of 23.93%. Only Great Wall Securities and Hongta Securities reported negative revenue growth, and only Hongta Securities and Hualin Securities saw net profit decline.
Shanxi Securities Company Limited Records Lowest Liquidity Coverage Ratio
From the perspective of liquidity risk-control indicators, Guotai Haitong held the highest net capital at RMB 225.987 billion by the end of June, while Hualin Securities had the lowest at just RMB 5.702 billion. In terms of absolute change, Guotai Haitong saw the largest increase of RMB 40.9 billion versus end-2025 levels, while China Merchants Securities posted the biggest decrease of RMB 2.461 billion. On a percentage basis, Guotai Haitong led with a 22.10% gain, while Northeast Securities recorded the sharpest decline at -6.96%.
As of the end of June 2026, among 43 listed brokers, Nanjing Securities had the highest risk coverage ratio at 673.4%, while Tianfeng Securities held the lowest at 153.06%. Nanjing Securities also topped the net stable funding ratio at 295.46%, whereas Tianfeng Securities again ranked last at 105.98%, touching the warning threshold and nearing regulatory minimums. For liquidity coverage, Nanjing Securities achieved the highest at 799.84%, with Shanxi Securities Company Limited at the lowest at 135.59%. On the capital leverage ratio, Pacific Securities led at 72.23%, while CICC had the lowest at 10.42%.
The liquidity coverage ratio measures a broker's high-quality liquid assets against net cash outflows over the next 30 days under stress conditions, calculated as high-quality liquid assets divided by projected 30-day net cash outflows, multiplied by 100%. This ensures brokers can meet at least 30 days of liquidity requirements by liquidating assets under extreme pressure. The regulatory standard is no lower than 100%, with a warning line at 120%. Most listed brokers reported ratios between 200% and 400% for the first half of 2026, with an average of 274.52% across the 43, implying their high-quality liquid assets were roughly three times expected net outflows over the next month. Although Shanxi Securities Company Limited's 135.59% exceeds the 120% warning threshold, it has remained persistently low among listed brokers, having ranked last among 44 listed brokers in both 2024 and 2025, and continued to lag at the bottom in the first half of 2026.
Notably, the 135.59% liquidity coverage ratio leaves only a 15.59-percentage-point cushion above the 120% warning standard. Additionally, Shanxi Securities Company Limited's capital leverage ratio fell from 17.14% at end-2025 to 15.35% by mid-2026, a considerable decline reflecting that total on- and off-balance-sheet assets expanded from RMB 60.242 billion to RMB 66.346 billion while net capital remained roughly flat (falling slightly from RMB 12.073 billion to RMB 11.932 billion), continuously consuming leverage capacity.
Revenue and Profit Trail Industry, Self-Op Trading Income Falls Against the Trend
For the first half of 2026, Shanxi Securities Company Limited reported total operating revenue of RMB 1.773 billion, up 8.07% year-on-year, with net profit attributable to shareholders at RMB 603 million, up 14.99%. Despite gains in both revenue and profit, the company still underperformed the broader industry. Citing data from the Securities Association of China, parent-company figures show industry operating revenue rose 32% year-on-year and net profit grew 23% in the first half, while the 44 A-share pure-securities brokers achieved combined revenue growth of 44.39% and net profit growth of 48.86% year-on-year. Shanxi Securities Company Limited notably lagged the growth rates of its listed peers.
Breaking down business segments, brokerage operations were a key pillar supporting the company's first-half growth. Net commission and fee income from brokerage reached RMB 507 million, up 36.34% year-on-year. However, self-operated trading income fell 11.78% year-on-year to RMB 567 million, serving as the main drag on overall performance and severely trailing the industry. In the first half of 2026, the A-share market displayed structural characteristics with diverging index movements: the STAR 50 Index led gains at 64.25%, while the Beijing Stock Exchange 50 Index dropped 13.14%. The Shanghai Composite edged up 3.16%, the Shenzhen Component Index rose 19.82%, and the ChiNext Index climbed 35.58%. Meanwhile, bond market interest rate benchmarks shifted lower with a steeper yield curve, supported by ample liquidity and slightly contracted bond supply, resulting in a slow bull trend with volatile strength.
According to multiple media reports citing Securities Association of China data, the brokerage industry's cumulative self-operated trading income grew 12% year-on-year in the first half, with second-quarter parent-company self-op income surging 88%. For the first half of 2026, the 44 listed brokers generated aggregate self-op trading income of RMB 170.05 billion, up 49.28% year-on-year, calculated as investment gains plus changes in fair value minus investment income from associates and joint ventures. Under this formula, Shanxi Securities Company Limited's self-op income stood at RMB 824 million, down 1.3% year-on-year, sharply underperforming the listed broker average.
Regulatory Actions Across Three Business Lines
In the first half of 2026, Shanxi Securities Company Limited's investment banking business generated revenue of RMB 150 million, surging 63.06% year-on-year, with profit margins turning positive at 9.86% from a negative reading the prior year. Asset management contributed RMB 157 million in revenue, up 19.71% year-on-year, with an operating margin of 57%. Despite revenue growth across investment banking, brokerage, and asset management, all three business lines received regulatory measures, including those involving employees.
On the investment banking front, in March 2026, Shanxi Securities Company Limited's subsidiary Zhongde Securities received a warning letter from the Shanghai Securities Regulatory Bureau related to the Taiyuan Heavy Industry project. Specific violations included serving as sponsor for Taiyuan Heavy Industry's 2020 non-public share issuance and listing, with inadequate due diligence on large accounts receivable, large prepayments, and financial expenses, plus untimely archiving of certain due diligence and ongoing supervision work papers. As co-lead underwriter for Taiyuan Heavy Industry's 2022 non-public corporate bond issuance, the firm also conducted insufficient due diligence on key subsidiaries, major customers, and suppliers. The Shanghai regulator noted these issues reflected incomplete compliance controls at Zhongde Securities, warranting the warning letter. The subsidiary's investment banking quality problems are not isolated, as it has previously faced lawsuits over securities misrepresentation, highlighting weak internal controls in fundamental due diligence processes.
On the brokerage side, in March 2026, Shanxi Securities Company Limited's Shaanxi branch employee Liu Qi received a warning letter from the Shaanxi Securities Regulatory Bureau for illegally entrusting individuals other than licensed securities brokers to solicit investors during their tenure. This violation exposed deficiencies in the company's marketing personnel management and compliance training. On the asset management side, in June 2026, subsidiary Shanxi Securities Asset Management received a corrective action decision from the Shanxi Securities Regulatory Bureau for failing to effectively implement internal control systems and for inaccuracies in information disclosure documents during operations.
The simultaneous emergence of issues across the investment banking, brokerage, and asset management business lines indicates that the company's internal control framework, built around compliance management, risk management, and audit inspection spanning pre-, during-, and post-event processes, faces execution-level challenges.