Ping An Securities: Foreign investment in China is both pressure and a reference point for local brokerages; local institutions' foothold remains in deeply cultivating industries.

On October 19, CSRC Chairman Wu Qing mentioned in his speech at the opening ceremony of the 2026 Financial Street Forum Annual Conference that foreign institutions are encouraged to make good use of their parent companies' professional capabilities and group advantages, further improve product layouts and participate in innovative businesses, and more foreign institutions are supported to invest and operate in China. Ping An Securities stated that foreign institutions operating in China are both pressure and a frame of reference for local securities firms. At the Lujiazui Forum in June 2026, the CSRC explicitly proposed actively supporting foreign institutions in establishing new wholly-owned and joint-venture securities, fund, and futures institutions in China, while emphasizing "opening the front door and blocking the side door," with openness and security coordinated and balanced. The 2026 Financial Street Forum Annual Conference further encouraged them to improve product layouts and participate in innovative businesses. What foreign institutions bring is not only capital, but also systematic and mature experience in product design, risk control systems, and cross-border services, and areas that need to be strengthened fasterwealth management, derivatives, and cross-border investment bankingwill therefore accelerate. In Ping An Securities' view, local securities firms have a very clear response approach: corporate governance and risk control systems should first benchmark against international peers to close gaps, and cross-border service capabilities should be built faster; the real foothold remains local, and a deep understanding of industrial structure, customer needs, and the regulatory environment is the comparative advantage of local securities firms, with deep cultivation of industry services far more valuable than homogeneous competition.