Top foreign brokerages pull ahead as China market divide widens

by CHEN Jing

Foreign-controlled securities firms in China posted strong growth in 2025, with major global investment banks sharply outperforming smaller rivals as competition in the world's second-largest capital market intensified.

According to annual data released by the Securities Association of China, 16 foreign-invested brokerages had combined assets of 53.47 billion yuan (about US$7.8 billion) at the end of 2025, up 5.4% from a year earlier. Their combined operating revenue rose 32.6% to 10.58 billion yuan.

Goldman Sachs, JPMorgan Chase, UBS and Morgan Stanley led the sector, with profit growth outpacing many major Chinese brokerages.

Goldman Sachs (China) Securities remained the largest foreign brokerage in China by revenue. Operating revenue rose 40% year on year to 2.58 billion yuan, while net profit surged 194% to 1.46 billion yuan. Brokerage business accounted for roughly two-thirds of total revenue.

JPMorgan Securities China reported its fifth straight year of profit, with revenue jumping 94% to 1.88 billion yuan and net profit rising 280% to 984 million yuan.

UBS Securities, benefiting from its wealth management and brokerage businesses, posted an 80% rise in revenue to 1.89 billion yuan, while net profit surged 387% to 730 million yuan.

Morgan Stanley Securities, the only major foreign brokerage in China without a brokerage license, relied on investment banking, fixed income and proprietary trading to post its best results since its establishment 15 years ago. Revenue rose 40% to 524 million yuan and net profit surged 664% to 139 million yuan.

The strong results at larger firms contrasted with continued losses among smaller foreign brokerages.

Standard Chartered Securities, which formally launched operations in 2024, reported revenue of just 15 million yuan in 2025, down 27% from a year earlier, while net losses widened to 103 million yuan. The firm had 55 employees at the end of the year.

DBS Securities reported a 31% rise in revenue to 78 million yuan but remained loss-making, posting a net loss of 148 million yuan despite completing several A-share equity deals.

Nomura Orient International Securities narrowed losses for a third straight year as revenue rose 21% to 169 million yuan.

Industry executives said many smaller foreign brokerages still lacked differentiated business models and sufficient scale to compete effectively in China.

"Some foreign firms have not built clear competitive advantages or fully leveraged their parent companies' strengths in areas such as cross-border M&A and offshore asset allocation," the head of research at a mid-sized Chinese brokerage told Jiemian News. "At the same time, operating costs remain high while revenue bases are still relatively small."

The executive added that local adaptation remained a challenge, with major domestic brokerages retaining strong client relationships and distribution networks.

Despite the widening divide, foreign brokerages are playing a larger role in connecting overseas capital with China's markets. Overseas institutions and individuals held nearly 3.7 trillion yuan worth of onshore Chinese equities at the end of 2025, according to industry data.

Wind data showed several foreign brokerage branches ranked among the most active seats on China's so-called "Dragon and Tiger List," which tracks heavily traded stocks. UBS Securities' Shanghai Garden Bridge Road branch ranked eighth with annual turnover of 75.2 billion yuan, while Goldman Sachs (China) Securities' Shanghai Century Avenue branch ranked ninth with turnover of 70 billion yuan.

Analysts said rising activity at foreign brokerages reflected deeper overseas participation in China's stock market, particularly in quantitative and thematic trading tied to AI and advanced manufacturing.