In 2025, China Merchants Securities Co.,Ltd. (CMSC) delivered annual results that appeared steady on the surface. According to the annual report, the company achieved operating revenue of 249.72 billion yuan, a year-on-year increase of 19.53%, and a net profit attributable to shareholders of 123.50 billion yuan, up 18.91% compared to the previous year.

The wealth management and institutional business of CMSC generated revenue of 138.25 billion yuan in 2025, a significant increase of 35.1% year-on-year, accounting for 55.36% of total operating revenue. This proportion is relatively high among leading securities firms, representing both a strength and a risk—when market trading volume contracts, this segment of income is also the most volatile.

The credit business is closely tied to brokerage activities. By the end of 2025, the scale of funds provided through margin lending had increased sharply by 40% from the beginning of the year to 1,333.53 billion yuan. The market share of the margin trading balance rose from 4.87% at the end of 2024 to 5.06%. This reflects stronger client willingness to use leverage and an increase in the company's market share in the margin lending sector.

Proprietary trading has always acted as a profit amplifier for securities firms. In 2025, CMSC reported proprietary business income—calculated as net investment income plus net gains from changes in fair value, minus investment income from associates and joint ventures—of 97.85 billion yuan, a modest increase of only 2.70% year-on-year. Although the absolute amount is substantial, this growth appears conservative when compared to the brokerage business, which often saw growth rates exceeding 35%.

The A-share market experienced a broad recovery in 2025, with major indices recording substantial gains. The Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index rose by 18.41%, 29.87%, and 49.57% respectively, with several indices reaching new highs. Market activity rebounded strongly, with average daily stock and fund trading volume reaching 1.98 trillion yuan, up 67% year-on-year. The securities industry showed a comprehensive recovery, with multiple core indicators improving noticeably.

Based on information from 24 listed securities firms that had published their annual reports, total proprietary trading income for the industry in 2025 amounted to 1,844.25 billion yuan, an increase of 32.16% year-on-year.

In other words, while peers were enjoying substantial gains, CMSC only captured a modest share.

A significant event occurred for CMSC in terms of capital operations in 2025: a non-compensatory equity transfer. In September 2025, CMSC announced that its shareholder, Chu Yuan Investment, transferred a 50% equity stake in Ji Sheng Investment to China Merchants Group Financial Holdings Co., Ltd. (CMG FH) without compensation. As a result, CMG FH now wholly owns Ji Sheng Investment, indirectly holding a 19.59% stake in CMSC.

Against the backdrop of regulatory encouragement to build "first-class investment banks," a wave of industry mergers and acquisitions is surging. In investor communications early in 2025, CMSC clearly stated it would "continuously track and study opportunities related to industry mergers and reorganizations." This equity transfer, which places CMSC under the direct vertical management of CMG FH, may clear ownership obstacles for potential future cross-business segment integration.