Another batch of brokerages apply for market-making business qualifications at the Beijing Stock Exchange

Securities Times Reporter Liu Yiwen

Recently, several brokerages including Changjiang Securities and Shanxi Securities have applied for market-making business qualifications at the Beijing Stock Exchange (BSE) and received feedback from the China Securities Regulatory Commission (CSRC). The CSRC requires additional materials, such as personnel position details from some applicants and market-making stock quote strategy plans from others. Currently, there are 21 market makers at the BSE, with several other brokerages still in the process of applying for this qualification.

The CSRC’s feedback to Changjiang Securities includes three points: First, the application materials state that Changjiang Securities plans to implement differentiated approval limits for various levels of stock market-making at the BSE in the new authorization scheme in 2026; they are asked to submit an updated authorization plan. Second, according to Changjiang Securities’ “Management Measures for Stock Market-Making Business at Beijing Stock Exchange,” the stock market-making decision-making team is responsible for major project approvals, implementation, and coordination; they are asked to clarify what constitutes “major projects.” Third, they are asked to provide the ranking of the company’s new third-board market-making transaction amounts in 2025.

The CSRC’s feedback to Shanxi Securities is more extensive, mainly including: First, Shanxi Securities is asked to clarify the backup arrangements for various positions involved in the BSE stock market-making business, as well as the specific numbers of senior research and assistant research staff, and to demonstrate whether these staffing arrangements meet the requirement of having “adequate personnel matching the business needs.” Second, they are asked to update the ranking of the company’s new third-board market-making transaction amounts in 2025, and to submit decision documents from the board and the professional committee for market-making regarding the 2026 stock market-making quota at the BSE. Third, based on the application materials, “after the Market-Making Business Professional Committee reviews and approves the annual investment plan for BSE stock market-making, it must be submitted to the company’s Executive Committee for further review, with final approval authority resting with the Executive Committee.” However, the company’s regulations specify that both the Market-Making Business Professional Committee and the Executive Committee have the authority to approve the annual market-making investment plan. Shanxi Securities is asked to clarify this inconsistency and improve the relevant wording. Fourth, according to Shanxi Securities’ “Management Measures for Stock Market-Making Trading Business at the BSE,” the research team is responsible for drafting initial stock acquisition plans or market-making quote strategies, and the trading team is responsible for drafting market-making stock quote strategies; they are asked to verify which specific positions are responsible for drafting the market-making stock quote strategies.

According to information released by the BSE, there are currently 21 market makers engaged in market-making business, including leading brokerages such as CITIC Securities, CITIC Construction Investment, and Galaxy Securities, as well as smaller firms like Guoyuan Securities, Caixin Securities, and Dongwu Securities.

From the perspective of market-making activity, as of the time of reporting, the top five brokerages by number of market-making stocks are Guojin Securities (62 stocks), CITIC Securities (59 stocks), Galaxy Securities (53 stocks), Guotou Securities (53 stocks), and Industrial Securities (29 stocks).

The reporter learned that several other brokerages are still applying for market-making qualifications at the BSE. Market-making trading is an important institutional innovation in the BSE market. Since its launch, the system has operated smoothly and has played a positive role in enhancing liquidity and stabilizing volatility.

Previously, to ensure a stable start, the qualification management of BSE market makers was modeled after the STAR Market, which has higher thresholds. As of June 2024, there are 17 market makers at the BSE. To expand the number of market makers and improve market liquidity, the CSRC adjusted the entry requirements for BSE market-making. Industry insiders expect that, based on the lowered net capital, classification ratings, and business ranking requirements, more than 20 securities firms will qualify for expansion, most of which are mid-sized brokerages with a strong presence in the new third-board market and high enthusiasm for participating in BSE business.

In September 2025, Zhongtai Securities announced that part of its fundraising through a private placement would be used for market-making business. Zhongtai Securities stated that as the scale of STAR Market market-making expands and relevant systems at the BSE are implemented, the company is leveraging its capital strength, risk control system, and financial technology advantages to actively develop market-making businesses on the STAR Market and BSE, while continuously strengthening capabilities in listed funds, the third board, and exchange bonds.

Hongta Securities, in its 2025 semi-annual report, stated that the company provides market-making trading services for third-board companies and is actively applying for market-making qualification at the BSE. The plan is to actively engage in market-making business at the BSE once qualified. The company is currently in the process of applying for the qualification, having passed the BSE’s acceptance review, and will need to submit the application to the CSRC. Moving forward, the company intends to strengthen communication with regulators and promote the application process.